*** How to Have the Government Pay Your Rent

The Power of Section 8 HousingnnHow would you like to own rental property where all or most of the monthly rent comes to you by check from the government? If that idea appeals to you, welcome to Section 8 housing!nnSection 8 is a program setup by the U.S. Department of Housing and Urban Development (HUD) to provide safe and sanitary housing to low-income individuals or families, the elderly, disabled, or disadvantaged in the private market. By issuing Section 8 housing vouchers, HUD assists tenants by paying the majority of their rent to you (the landlord). In other words, you get a guaranteed check form HUD by the third of each month.nnResidential or CommercialnYou can take advantage of Section 8 whether you prefer to invest in residential or commercial real estate. In fact, Section 8 housing can be single-family houses, apartments, condominiums, or duplexes. Many property owners elect to become Section 8 landlords because it provides them with dependable cash flow. And the city already has a list of approved tenants, so you don’t even need to advertise your unit(s).nnBetter Quality TenantsnResearch indicates that Section 8 tenants tend to:n

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• Be better than averagen
• Often remain in their unit(s) for several years, andn
• Are motivated to pay you their portion of the rent each month.n

nSounds unusual, doesn’t it? Why is this?nnWell, in order to receive Section 8 benefits, individuals must undergo an application process through their local Public Housing Authority (PHA) office. There is generally a lengthy waiting process and in some cases it can take up to one year or more to receive Section 8 approval. Once approval is obtained, PHA places applicants on a waiting list--a list of people just waiting for a property like yours! (It’s important to note that you never have to get involved in the process of establishing the eligibility of tenants. This has already been determined before the tenant calls you!)nnParticipants in HUD's Section 8 program must be re-certified each year. And no tenant wants to lose their Section 8 status. This benefits you as the landlord. Not only will you have fewer hassles, but your tenant(s) has a motivation to pay you the rent on time or risk losing his/her eligibility!nnMany Types of NeighborhoodsnIll-informed landlords believe that Section 8 property must be located in subsidized housing projects. Although some investors do go this route, this is simply not true. Remember: The program is geared toward low income people, but the participants can choose ANY housing that meets the requirements of the program. So if you own properties in middle-low to low income areas (not war zones!), the Section 8 program just might be your ticket to wealth!nnSection 8 Housing can provide landlords with guaranteed rental income and long-term, quality tenants.