As homeowners continue to mitigate through issues facing the real estate market, those wanting to sell their property are now considering becoming a landlord. If you do, it’s important to understand how to run a rental property business to ensure a positive cash flow.
Regardless if your Contra Costa County property is a sound investment, a vacant home will turn a profitable asset into a financial burden. Vacancy is typically the most costly part of owning a rental property. After all, how you can make any profit when expenses are coming out of your pocket?
In order to avoid a stagnant property, you need to find a good tenant. Good tenants will pay their rent on time, adhere to the lease agreements, take care of the home and overall, allow you to rest easily at night. In short, a great tenant is crucial to the success of a rental property.
If you are thinking of renting your home or having a hard time finding qualified tenants, consider renting your property under Section 8. This is a federal program that subsidizes rent for low-income individuals. Tenants pay 30 percent of their income towards rent while the state or local housing agency pays the difference. The difference is based off the fair market rent and determined by the Department of Housing and Urban Development (HUD).
Although some landlords worry about renting their home under Section 8, there are actually a lot of fantastic benefits to using the program. So, what are the benefits to renting your property to Section 8 tenants?
Here at Stokley Properties, Walnut Creek Area Property Management firm, the reason we like Section 8 is because it’s a guaranteed rent payment. For instance, if your tenant stops paying rent, you still get a big chunk of the rent. So, while the Section 8 housing agency pays your rent payment, you can figure out what to do without having to spend much of your own money.
Another reason to consider Section 8 is that it allows you to screen potential tenants just like you would otherwise. Section 8 is just another part of their income, so as you screen them you can determine if they are the best fit for your property.
Lastly, another great benefit to the Section 8 voucher program is that it’s easy to use. There’s not a lot of paperwork involved and they do the inspection for you. This can either be a good or bad thing, but generally it’s good. An inspection ensures your property is safe and habitable for tenants prior to moving in.
These are just a few of the reasons why we at Stokley Properties believe investors should consider using the Section 8 program. After all, it’s a guaranteed rent payment, how great is that? If you have any questions regarding Section 8 and your home, contact Stokley Properties to help guide you through the process.