Florida offers a small amount of government-subsidized housing. According to Usafacts.org, Florida is in the bottom 5 for subsidized housing as far as quantity goes.
Still, that doesn't mean a Lakeland landlord shouldn't understand what subsidized housing programs the Sunshine State has to offer. Section 8 tenants make up a good chunk of the tenants you could find, especially if you're struggling to find renters.
If you're curious about Section 8 housing, we're here to help. Read on for a brief overview of the pros and cons of these rental assistance programs.
- Pros of Section 8 Tenants
- Cons of Section 8 Tenants
Pros of Section 8 Tenants
Let's start off with the pros. Here are the three main upsides to keep in mind when you begin looking into Section 8 tenants.
Reliable Income
One of the most favored benefits of Section 8 tenants is that they offer a reliable rental income stream. Most of their rent - about 70% - comes from government subsidies.
As such, you don't have to wait for them to pay like you do with other tenants. This ensures that you'll make a reliable, timely amount each time.
Easier Payment
Part of this benefit comes from the payment being significantly easier. Since the government is making the payments, late rent is much less frequent.
Another benefit comes from fair market rent. By following the Section 8 guidelines, you can comfortably raise the rent within the right range. Section 8 tenants rarely foot this cost, so you have less resistance to rent hikes.
Quality Tenants
Finally, Section 8 is full of quality tenants. There's usually a long waitlist, giving you plenty of options to pick what tenants you're comfortable working with.
For some, there's a stereotype against Section 8 tenants being "low quality." Rest assured that this is not the case and that you'll be able to pick your partners in housing.
Cons of Section 8 Tenants
There are some definite drawbacks to Section 8 tenants. Here are some issues to keep in mind.
Heavy Red Tape
The first thing many landlords notice is the heavy red tape they'll deal with. The approval process alone is a lengthy process among your already-busy landlord responsibilities. Eviction protection can also provide some paperwork.
Delays in Payment
In the first month, there is often a delay in rent payment. That's because it takes a few weeks for Section 8 subsidization to kick in for the tenant. Once that first month passes, the issue should be gone.
Higher Program Standards
Finally, expect frequent inspections. Section 8 provides the tenant with a set of standards they can expect. That means you'll need to keep the home in perfect order.
Understanding Rental Assistance Programs
Section 8 tenants are plentiful in Florida, making it easy for you to fill your vacancies. Make sure you understand what sort of responsibilities you'll be adding to your plate by accepting Section 8 tenants.
At PMI Arrico Realty & Property Management Lakeland, we're dedicated to serving our clients with excellent customer service. Our services include residential and commercial management, focusing on a full-service management format. Contact us today to see how we can help you improve your property.
