Section 8 Homes For Rent: Property investors don’t all fix and flip their properties. Many of them hold them, offering them up for rent instead. There is a significant demand for rental properties, and people are looking for Section 8 homes for rent in particular. This means that investors have an opportunity to earn a very nice income.
The Benefits Of Offering Section 8 Homes For Rent:
In the past, if investors would have homes that they would offer for rent, it would generally be a holiday home. This came with considerable expense, however, as the home would need to be furnished and health and safety checked, and there would be no guarantee that people would actually rent it. Since there has been such an increase in the demand for Section 8 homes for rent, however, the market has changed significantly.
There are pros and cons to having Section 8 houses for rent. The greatest drawback is that you may have to lower the rental price, because it must be classed as “fair”. Luckily, the advantages are likely to outweigh this. You are, after all, almost guaranteed to have tenants in place, you are protected by the Department of Housing and Urban Development, who will also run maintenance tests for you, and you are guaranteed to receive your rent on time each month, or at least a portion of it.
Naturally, there are always risks involved. If you do offer your home as a Section 8, the only real rent guarantee you have is for the percentage that is paid under that arrangement. Your tenants will still be responsible for their own percentage, and it is always possible that they won’t pay it. However, this is rare, because people are in such dire straits. In that lies another risk, however, and that is that you don’t have as much opportunity of declining a prospective tenant based on his or her financial background or other personal history. Many will be rehabilitated criminals, people on welfare, the unemployed, the elderly, the disabled, veterans, the homeless, and others who have had a checkered past who have likely not been able make their rental payments on time each month. On the other hand, it also means that you are giving people whom society seems to have washed their hands off, an opportunity to live better lives once again.
The Investment Element:
One of the key reasons why you may want to offer your property as part of the Section 8 homes for rent, however, is because it means you don’t have to sell it. House prices have been rising, but it is likely that they will rise a lot more in the not too distant future. By holding on to your property, you stand a chance of profiting a lot more from it in the long run. Furthermore, the rental price you will charge will undoubtedly be higher than your mortgage payments, which means you will earn a passive income while you wait as well. Sure, there are risks associated with Section 8 housing, but there are risks with every investment. This seems like one worth taking.