How The Full Stability of The U.S. Government Can Help Start Your Rental Wealth

Update to article previously titled: “Why the “What if I Can’t Find a Renter?” Fear is Completely Unfounded.” With shifts in the market and landlord tenant laws, there is more concern today with finding responsible tenants.

One of the top reasons people who hear a solid plan of how to get into real estate are hesitant, is worry that they’ll get stuck in a cycle of tenants that stop paying and start being a nuisance. This is understandable because people hear horror stories or are simply skeptical; but the U.S. federal government has a solution that actually works, for the payment concerns, (to be successful, you must still do your own background checks). Sure, there is red tape and sometimes tedious inspections, but the money comes in like clockwork and there’s a long line of tenants if for some unlikely reason, yours moves out. The average American truly can become wealthy slowly courtesy of our Uncle Sam. Here’s what I mean:

“The Housing Choice Voucher Program (more commonly known as Section 8) is the federal government’s major program for assisting very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market.” –HUD website.

Tenants whom are accepted into the program are tasked with finding an apartment on their own and a lot of landlords will not take these vouchers. There’s a cultural bias that lower income folks will cause property damage or have excessive police activity. The local housing authority sends inspectors, some of whom are very strict, before move in and every year, or sooner if the tenant reports an unresolved issue, and payments can be stopped if maintenance issues aren’t fixed. Also there is a cap on how much Section 8 will pay based on the local Fair Market Rent, enough to pay for a lower to average quality apartment but not enough for the fancy buildings in the nice part of town.

The “I love Section 8” landlord crowd sees that once participants find someplace quality to live, they stay and follow the rules to remain in good standing (in fact if they get evicted by the judge while on the program, they can lose their voucher altogether). Proper screening can help landlords to figure out whom is most likely to take pride in keeping their home clean and functional. A decent portion of Section 8 tenants require some assistance to live on their own, so some basic enhancements, like bathtub safety bars and easy to reach cabinets, can make your apartment even more conducive of long term living. The Housing Choice Voucher Program is simply the governments way to engage private individuals and companies in the process of creating stability.

ps. A Section 8 voucher can also be used to purchase a house, so this little known option is a great opportunity for the millions of low income households on the program.

New York State Website Business Insider article

(of course potential participants should check with their local housing authority before concluding if this is a good or bad option for them).