The Pros and Cons of Accepting Section 8 Housing Vouchers

The Housing Authority offers the Section 8 Housing Choice Voucher program for low-income renters. The program is income based, meaning the tenant will pay a percentage of his rent out of pocket, and the Housing Authority will pay the remainder directly to the landlord. For private landlords, the voucher program seems like a mixed bag. Some landlords seem to love the program, while others have had a bad experience. As a rental property manager, I see both upsides and downsides to Section 8.

The Advantages of the Section 8 Program

Guaranteed Rent - Collecting the rent is the biggest worry for most landlords. Sometimes, a tenant just doesn't pay the rent, or skips out on the lease in the middle of the night. With the Section 8 Housing Choice Voucher program, you will always get at least a portion of the rent on time each month, since the check comes directly from the Housing Authority.

Pre-screened Tenants - Some landlords have the impression that a tenant with a Section 8 voucher poses more of a risk than other tenants. In fact, the local Housing Authority has their own screening process for allowing tenants into the program. While you should still run your own background check on every prospective tenant, there is no added risk to accepting a Section 8 tenant.

More Prospective Tenants - Allowing Section 8 vouchers for your rental property opens up the pool of prospective tenants. Many local Housing Authorities run websites that allow you to post an ad for your rental property, meaning you have a larger audience of prospective tenants. The more people who see your ad, the better chance you have of renting your property quickly.

The Disadvantages of the Section 8 Program

Strict Building Requirements - Your rental property will have to pass an inspection by a local Housing Authority before you start accepting vouchers. This means you will not only have to pass local building safety codes, but the local Housing Authority's codes as well. This could mean extra repairs or remodeling on your part.

Application Process - You will have to go through an application process to become a Section 8 landlord. This means extra paperwork, wait times and possibly an interview depending on which area you work in.

Management - The Housing Authority does not help manage your properties or tenants for you. You will still need to find tenants, create a lease agreement, collect the rent and make needed repairs. While you will get a rental assistance check, you will still act as the primary landlord.

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