If you're a landlord then you'd know all about looking for ways to maximize your tenant pool to ensure that you're never left with a rental vacancy. If you ask any property owner - nothing drains your bank account or enthusiasm faster than a vacant rental.
This is where Section 8 comes in to help you access a huge pool of applicants you might be missing out on. But how exactly do you become a Section 8 landlord and what dictates fair and reasonable rent?
If you're interested in learning more about Section 8 guidelines, this blog is for you.
How to Become a Section 8 Landlord
In Connecticut, more than 49,000 people live in subsidized housing. Each year, this number increases, meaning that the Section 8 tenant pool becomes larger and larger. Essentially, these tenants are provided with housing vouchers under the stipulations of Section 8 and Connecticut's Fair Housing Center (CFHC).
In order to qualify as a Section 8 landlord, your home must meet quality housing standards and a reasonable rental price. Your home will be inspected before you take in a Section 8 tenant, and your rental cost will be assessed.
If your property passes inspection and you're able to offer reasonable rent under Section 8 guidelines, you'll sign a tenancy agreement with your tenant, and the CFHC. As a property owner, you are guaranteed rental income through the housing vouchers supplied by the CFHC.
What Does Reasonable Rent Look Like?
According to the guidelines under Section 8, a tenant must not pay more than 30 percent of their own income on rent. Section 8 determines whether your rent is reasonable according to the following rental evaluation criteria:
- Your property is inspected and then compared to similar properties in the area
- Section 8 assesses the size, location, and construction date of your home
- They also consider the type of home it is, the property condition, and the amenities it offers
- Your rent is also compared against whether it includes the cost of utilities
If your home has recently undergone renovations, it won't be compared to a property without recent renovations according to Section 8's rental pricing strategy. This is the best way to ensure fair market rent in Connecticut. Throughout the tenancy, Section 8 will regularly check on your rent reasonability. They might contact you to reassess your rental price in this scenarios:
- When you're considering a rental increase
- The tenant lease is up for renewal
- On orders from the CFHC
- Or if they feel it's necessary
Bear in mind that fair market rent can change on a yearly basis. Be prepared for Section 8 to compare the new rental rate to past rental rates to determine whether your rent is fair or requires an increase.
Keen to Become a Section 8 Landlord?
If you're interested in growing your potential tenant pool by becoming a Section 8 landlord, then we've got a talented and experienced team to help you. Whether it's establishing fair rental rates, finding tenants, collecting rent, or tenant screening, our PMI Putnam property management professionals are in your corner.
Want to learn more about the residential services we offer? Here's how we can help you.
