Are you searching for ways to stabilize your portfolio of multi-family investment properties? Even during coronavirus? If so, you’ve come to the right place!
One of the best ways that you can establish a stable portfolio of multifamily investment properties right now is by renting to Section 8 tenants.
Yes, some multi-family property investors will have a “knee-jerk reaction” to the possibility of renting to Section 8 tenants, but the reality is that there are a wide variety of benefits that come from for renting to an individual who is currently on Section 8.
Advantage #1 – Section 8 Rent Payment Comes From Government
The first advantage that comes from renting to somebody who is on Section 8 is the fact that their rent payment comes directly from the Federal Government.
This is a huge advantage in a world that’s been wracked by coronavirus because many renters right now do you not have the ability to pay their rent so nothing is guaranteed.
The fact that you can have one or more renters who can pay their rent consistently every month without any questions should give you peace of mind and confidence that you can grow your portfolio of investment properties even during trying economic times.
How do you get paid rent from your tenant who is on Section 8? Once your rental unit has been approved, then inspected by the local public housing authority, you will sign a lease with your tenant and the Housing Authority will be responsible for paying the tenants rent directly to you every month.
Thankfully, there are several different options that you can choose to get paid rent from the public housing authority every month including check or direct deposit.
Advantage #2 – Target Marketing
Another awesome manage that comes from renting to somebody who is on Section 8 is target marketing because once your rental property has been inspected and approved for Section 8, you can market available units in your property directly on their website.
Besides listing your property on the Section 8 website, you also can market available rental units in your property directly to tenants who are searching for properties at the local Section 8 office.
Advantage #3 – Consistent Payments
Yes, besides offering you a stable rent payment every month that comes directly from the federal government, and the ability to you market your available units in your rental property directly to Section 8 tenants, another benefit that comes from renting to somebody who’s on Section 8 is consist tenants.
With Section 8, you have people who sometimes wait months or up to one year to be approved for the program so once they are approved, and they find a rental property that accepts Section 8, you can count on those individuals to be very consistent in terms of paying their rent on time on the monthly basis and this will provide you with consistent income that you can depend on.
Times have changed and the 2020 rental market is nothing like the rental market of 2018 or 2019. In this rental market, it’s going to become more important than ever before for owners to have stable tenants in place who can pay their rent consistently every month without fail.
Having that income stability in place will give you the confidence that you can weather the upcoming economic recession and have the stability of income that will get you through financially until the economy begins to improve.
Advantage #4 – Section 8 Tenants Are Pre-Screened
If you’ve ever had “nightmare” tenants in the past who destroyed your rental property, did not pay the rent consistently, or were just overall difficult people to rent to, you know the advantage of having tenants who are pre-screened.
Thankfully, Section 8, tenants are also pre-screened before they are approved for the program. This means that they must meet a wide variety of requirements before they are approved for the program.
Even though though this program does pre-screening, you should still follow through and be diligent about screening tenants yourself just so that you can have complete confidence in an individual that you’re going to be renting to before you approve them to live in your multifamily property.
This program is without a doubt one of the best programs that any landlord can be involved with during trying economic times because the program offers landlords income stability and stable tenants who may rent from them for years to come.
The reality is that this program does come with some risks including the fact that the Government does not pay deposits and tenants rental units have to be inspected annually.
If you’re willing to overlook some of the potential risks that can come from renting to someone on Section 8, you may be able to have a steady income source from that tenant that will last for years to come.