why do landlords not accept section 8?

In Chicago, it is illegal to discriminate based on a tenant’s income, so denying a Section 8 tenant just for their voucher is ill-advised. Like all government funded programs there is a lot of paperwork involved and a lot of requirements that cost the landlord a lot of time and money. https://www.rentprep.com/landlord-tips/coronavirus-resources-new-york/, https://www.cnn.com/2020/03/19/success/real-estate-coronavirus/index.html, https://portal.311.nyc.gov/article/?kanumber=KA-01253. The Section 8 program has very strict standards, so it is not unusual to fail a Section 8 inspection. Erin Eberlin wrote for The Balance Small Business, covering rental management, tenant acquisition, and property investment. If a landlord approves a Section 8 tenant and the landlord's property passes a HUD inspection, the parties execute a one-year lease. and she was having trouble, as they had rented from me … Section 8 provides housing vouchers that pay the tenant’s monthly rent. However, these problems can happen with any tenant you rent to. There are more tenants with section 8 vouchers than landlords willing to accept … Now that we’ve gotten our refresher course about Section 8 housing, let’s get into today’s main topic: Are landlords required to accept Section 8 tenants? Rules like the ones on track in Baltimore and San Jose would not “force” landlords to accept Section 8 vouchers (as some landlords might tell it). She has more than 16 years of experience in real estate. House Bill 2578, which will go into effect at the end of September, makes it illegal for landlords to reject applicants based on their use of public assistance… Are Landlords Required To Accept Section 8 Tenants? A Simple Benefits Guide. Texas has laws that forbid cities and counties from implementing any discrimination bans such as those passed in Chicago.Â, You can also find some specific information about each state’s rules on the, Low vacancy rates because of the high demand for HUD-friendly properties, 70% of rent paid directly by the government; no risk, Tenants pre-approved by the PHA before receiving their voucher, Other landlords have an implicit bias against those that use vouchers, and they falsely believe that these tenants will be more likely to cause property damage than other tenants. Many landlords are wary of Section 8 tenants. If one floor of my 3 family would be Section 8, would the whole property become Section 8? However, there are some regions and states where there are some limitations about when landlords can and cannot deny an application by a Section 8 voucher holder. When this event happens, the government increases their share of rent to landlord to cover loss of income from tenant. State Rent Assistance Resource Page – https://access.nyc.gov/ If you continue to use this site we will assume that you are happy with it. I have a couple of rental houses I do accept section 8 on one, who I helped get on section 8, when her husband ran off with a younger woman. In New York, more than half a million low-income residents who use some form of federal rental assistance to pay for housing are at risk of being turned away. Depending on the condition of your property and the Fair Market Rent HUD has calculated for your area, you may be able to rent your property for a higher amount to a non-Section 8 tenant. There are different procedures and requirements a landlord must follow when renting to a Section 8 tenant than when renting to a tenant who does not receive this housing choice voucher. If a landlord wishes to collect a security deposit, he or she has to get this deposit directly from the tenant. Government section 8 payments are generally prompt, and you do not need to worry about the government defaulting on your payments. The laws focus on the reasons why you decide that a tenant is fit or unfit for your property. A landlord is never required to accept a tenant’s application, but many areas will require you to treat a Section 8 tenant’s application with the same respect that you would treat any other application.Â. This can be attributed to such factors as: Why do certain landlords advertise they take Section 8 and some don't? Especially in hot real estate markets, landlords may feel they can charge higher rents than they can get through the Section 8 program. As with any other tenant, you should never allow a Section 8 tenant to move in without first collecting a security deposit from them. The tenant pays a portion of the rent based on his/her income and the Voucher covers the balance. Section 8 sets up a specific range of prices, and these prices usually fall on the lower end of the market average. That’s a misperception, Galvez says. Before we get into the pros and cons of accepting Section 8 tenants, let’s review what section 8 is and how it may affect your business. In these situations, the only thing you can do is make sure you place quality tenants in your property and that you keep up with property maintenance. section 8 tenants waiting to fill an empty unit. Full guide on how to navigate COVID-19 as a landlord or renter in NYS:  https://www.rentprep.com/landlord-tips/coronavirus-resources-new-york/, General Landlord Resources – https://hcr.ny.gov/ During the term of the lease, the tenant must pay the landlord his share of the rent. They found that two-thirds of landlords who had rented to Section 8 tenants had what they described as a negative experience, and had vowed never to rent to voucher holders again. When potential tenants plan to use Section 8 vouchers as a payment method, a lot of landlords will quickly look the other way and find a new tenant. In most areas, landlords are not required to accept Section 8 tenants. If a landlord wishes to collect a security deposit, he or she has to get this deposit directly from the tenant. Total Contract Rent in the Section 8 Program. Even when there are additional laws and protection in place to prevent housing discrimination, no law will require you to accept any tenant that you do not find to be a good fit. Non-Section 8 Tenants May Not Want to Live at the Property, How to Calculate the Fair Market Rent for Your Unit, Reasons a Landlord Can Take a Tenant to Court, When and Why the Section 8 Inspection Is Conducted, Here Is a Look at the Advantages of Renting to Section 8 Tenants, How Section 8 Decides if Landlord Is Charging a Reasonable Rent, Complete This 10 Item Checklist Before Tenant Move In. In fact, you can keep your property full and profitable if you treat Section 8 housing vouchers the right way. Tenant Moves In Before You Collect Rent, 3. Business Assistance – https://www1.nyc.gov/, Q: Can I still close on my property in state? Not everywhere the Section 8 pays the entire rent. 3. The inspector is making sure your unit meets HUD’s Housing Quality Standards. State Eviction & Nonpayment Resource Page – https://www.nyhousing.org/ Landlords that participate in the section 8 program never have to worry about losing rent from a tenant they are evicting. A landlord generally faces an uphill legal battle if he or … The simple fact is that all tenants, regardless of where their income is sourced from, need to be thoroughly screened to help ensure that you choose a good tenant. If a section 8 applicant presents with clean credit and positive landlord references I would accept them. These areas include sanitary system, lead-based paint, water supply, electrical and smoke detectors. My Section 8 tenant was supposed to move into my three bedroom apartment with her 3 children and her husband (who was not in the Section 8 program). This inspection has to be done even if there has been no tenant turnover. You will typically not receive your first rent check from Section 8 until after the tenant moves into the property. The simple fact is that all tenants, regardless of where their income is sourced from, need to be thoroughly screened to help ensure that, If you’re interested to know more about becoming a HUD landlord, you can check out our complete guide to becoming one. Also known as HUD housing, this program grants vouchers to tenants that act as a guarantee that the program will pay 70% of the rent while the tenant will be responsible for the other 30%. Also to know, why do landlords not accept Section 8? This is why it is so important to screen all tenants, including Section 8 tenants, properly. Does refusing section 8 vouchers make sense for the common landlord, or are there benefits to accepting these government-backed housing vouchers? Our tenant screening services have been trusted by over 90,041 landlords & property managers since 2007. You will need to determine if low vacancy rates make up for the lower price point. Are evicting matters most about Section 8 provides housing vouchers that pay the landlord his share of rent... 8 inspector to determine if the unit meets HUD ’ s monthly rent be turned by... Can also be very difficult if non-Section 8 tenants getting approvals to accept rent... Once again send the inspector to determine if low vacancy rates make up for next... Government housing Programs Every landlord should know, the thing that matters most about Section 8 inspector to if. 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