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why do landlords not accept section 8?

Why do certain landlords advertise they take Section 8 and some don't? These are some of the major factors of the HUD housing program that we find to be very attractive for landlords: There are always going to be some risks involved when renting a property; the same remains true when renting to tenants with housing vouchers. Instead, you should think about HUD housing from the business side of things. They found that two-thirds of landlords who had rented to Section 8 tenants had what they described as a negative experience, and had vowed never to rent to voucher holders again. Landlords across the state frequently deny housing to people with legal sources of income in the form of Section 8 housing vouchers, child support, or other non-wage income. required to accept Section 8 tenants. 3 Government Housing Programs Every Landlord Should Know, The Balance Small Business is part of the. This is the top reason many landlords do not accept Section 8 vouchers. Home / Is Section 8 Good For Landlords? Landlords can’t lock or freeze out tenants. This could be an issue because the tenant has already shown to have limited income by being approved for a Section 8 voucher in the first place. We use cookies to ensure that we give you the best experience on our website. If a landlord wishes to collect a security deposit, he or she has to get this deposit directly from the tenant. Does refusing section 8 vouchers make sense for the common landlord, or are there benefits to accepting these government-backed housing vouchers? In some cases, the voucher is held by a specific property rather than by a specific tenant. Federal law can’t counter the misconceptions that many landlords have about the Section 8 program: that they have to accept any and every voucher … Another risk of renting to a Section 8 tenant is the belief that Section 8 tenants are very destructive. If non-Section 8 tenants see that your property is quiet and in pristine condition, they may change their opinion about Section 8. This is not the only way that Section 8 housing works. But some states and municipalities do, often as part of a broader ban on “source of income” or “public assistance status” under the state or local fair housing law. There have even been cases where landlords have had to wait as many as three or four months to get paid by Section 8, but once you receive the first payment, you should expect consistent payment each month. I have a couple of rental houses I do accept section 8 on one, who I helped get on section 8, when her husband ran off with a younger woman. However, these problems can happen with any tenant you rent to. 2. Business Assistance – https://www1.nyc.gov/, Q: Can I still close on my property in state? In Chicago, it is illegal to discriminate based on a tenant’s income, so denying a Section 8 tenant just for their voucher is ill-advised. There are more tenants with section 8 vouchers than landlords willing to accept … The bottom line. If you continue to use this site we will assume that you are happy with it. and she was having trouble, as they had rented from me … Security Deposits Are Not Paid by Section 8, 4. Another advantage of section 8 tenants is the large pool of available tenants. Many landlords do not initially realize that there are a large number of good reasons to review Section 8 applicants with a positive eye. There have been horror stories about floors being destroyed, cabinets being pulled off the walls, toilets being cracked, garbage and filth everywhere and many more people living in the unit than are listed on the lease. The delay in payment is something to keep in mind when considering renting to Section 8 tenants. House Bill 2578, which will go into effect at the end of September, makes it illegal for landlords to reject applicants based on their use of public assistance… In most areas, landlords are not required to accept Section 8 tenants. By calling up the local housing division or even an experienced realty lawyer in the area, you’ll be able to find out if there are any ordinances that will need to be considered. However, there are some regions and states where there are some limitations about when landlords can and cannot deny an application by a Section 8 voucher holder. Getting approvals to accept HUD Sec 8 is a lot of red tape, lots of restrictions & requirements, time-consuming process. The landlord cannot charge a Section 8 tenant more than a reasonable rent and cannot accept payments outside the contract. A: Yes – https://www.cnn.com/2020/03/19/success/real-estate-coronavirus/index.html, Q: Do I still have to pay property taxes? The Balance Small Business uses cookies to provide you with a great user experience. While the government pays 70% of the rent directly each month, the other 30% will still need to be paid by the tenant. Understanding how Section 8 housing vouchers could play a part in your profits or losses is an important part of becoming a more experienced landlord; here’s what we think that you need to know. Also that they will not take care of the property. Enacted in the early 1970s, this program is managed by the Department of Housing and Urban Development. Sometimes, you’ll meet a potential tenant that you really like, but they just can’t afford the rent at your property so you have to let their application pass by. “No Section 8” Finding a landlord that will accept their voucher can also be very difficult. The inspector is making sure your unit meets HUD’s Housing Quality Standards. In most areas, landlords are not required to accept Section 8 tenants. But the researchers found it hard to disentangle actual incidents from personal prejudices. Some landlords may find it more work to accept two rent payments for an apartment. Landlords that participate in the section 8 program never have to worry about losing rent from a tenant they are evicting. that prohibits landlords from denying or refusing to accept applications from those who utilize public assistance. While we cannot list every single area as there are too many, we can cover some of the most well-known exceptions: All in all, there are 15 states that have some type of rules about Section 8 housing or income-based housing discrimination at this time.Â. When a tenant moves out, the voucher remains with the property for the next tenant. Erin Eberlin wrote for The Balance Small Business, covering rental management, tenant acquisition, and property investment. Government section 8 payments are generally prompt, and you do not need to worry about the government defaulting on your payments. In New York, more than half a million low-income residents who use some form of federal rental assistance to pay for housing are at risk of being turned away. The Section 8 program has very strict standards, so it is not unusual to fail a Section 8 inspection. Aside from the reasons aboasve to not accept Section 8 and HASA, I don’t accept those anymore because there’s absolutely no accountability. While the rent portion coming from the government is virtually guaranteed, many landlords fear that the tenants may be to poor to pay their share of the rent. Landlords are looking for responsible tenants with predictably middle class behavior. Now that we’ve gotten our refresher course about Section 8 housing, let’s get into today’s main topic: Are landlords required to accept Section 8 tenants? They will once again send the inspector to determine if all issues have been fixed. My Section 8 tenant was supposed to move into my three bedroom apartment with her 3 children and her husband (who was not in the Section 8 program). The biggest risk of the program, in our opinion, is that the price of your rental will be at least partially dictated by the HUD program. Ultimately, it will be up to you to decide. State Mortgage & Expense Forbearance Resource Page – https://www.dfs.ny.gov/ https://www.rentprep.com/landlord-tips/coronavirus-resources-new-york/, https://www.cnn.com/2020/03/19/success/real-estate-coronavirus/index.html, https://portal.311.nyc.gov/article/?kanumber=KA-01253. Can Landlords Keep Security Deposits for Normal Wear and Tear? Rules like the ones on track in Baltimore and San Jose would not “force” landlords to accept Section 8 vouchers (as some landlords might tell it). The idea of receiving vouchers makes many feel like they are taking unnecessary risk on their investment. Will accepting these vouchers help or hurt your business? The argument goes that to disperse African Americans throughout other, higher-income neighborhoods throughout the city, landlords city-wide must be forced to accept vouchers. A Simple Benefits Guide. As with any other tenant, you should never allow a Section 8 tenant to move in without first collecting a security deposit from them. The biggest concern that landlords have is about whether or not they can trust tenants with limited income to pay their rent in full in a timely manner. When this event happens, the government increases their share of rent to landlord to cover loss of income from tenant. section 8 tenants waiting to fill an empty unit. These areas include sanitary system, lead-based paint, water supply, electrical and smoke detectors. The amount of the housing voucher will be between 90 percent and 110 percent of the Fair Market Rent. State Eviction & Nonpayment Resource Page – https://www.nyhousing.org/ Use that information to make your choice. Your local Public Housing Authority will send a Section 8 inspector to your property once a year. Section 8 sets up a specific range of prices, and these prices usually fall on the lower end of the market average. The only way to be completely sure about whether or not you are required to accept or review Section 8 tenant applicants is to check with your local and state laws. However, there are some regions and states where there are some limitations about when landlords can and cannot deny an application by a Section 8 voucher holder. If a landlord approves a Section 8 tenant and the landlord's property passes a HUD inspection, the parties execute a one-year lease. If you do fail the inspection, you will be given a list of items that need to be fixed. Landlords, although required to meet fair housing laws, are not required to participate in the Section 8 program. A landlord is never required to accept a tenant’s application, but many areas will require you to treat a Section 8 tenant’s application with the same respect that you would treat any other application.Â. ” refers to a specific part of the national housing code that helps struggling tenants pay for housing. Depending on the condition of your property and the Fair Market Rent HUD has calculated for your area, you may be able to rent your property for a higher amount to a non-Section 8 tenant. They may believe that you are a “slumlord,” that the property will be dirty or that the tenants will be disrespectful and noisy. Each year, HUD puts together a list of Fair Market Rents for over 2,500 areas of the country. Most landlords do not accept Section 8 because the Section 8 program is run by the United States government. The main thing that we would like to emphasize is that you are never required to accept a tenant just because they apply to rent your property and have a special voucher. That’s the problem, argue the researchers: When landlords don’t face any penalties for declining vouchers, they feel free to reject perfectly good tenants. Subsidized or market rate, a responsible tenant is the key to a happy ownership experience. Also to know, why do landlords not accept Section 8? As a result, some landlords will not accept a Section 8 tenant. Tenants who do not collect rental assistance may be turned off by the fact that you allow Section 8 tenants in your property. There are quite a large number of places where you cannot deny a Section 8 applicant simply because they are going to be using a housing voucher to cover some of their rent. Why Do Some Landlords Not Accept Section 8 Vouchers? State Rent Assistance Resource Page – https://access.nyc.gov/ A: Depends on the city you live in – https://www.politico.com/, Is Section 8 Good For Landlords? Though the apartment owners’ lobby had said that Section 8 requires landlords to sign a 400-page document and makes it more difficult to evict … California landlords would no longer be allowed to reject prospective tenants solely because they hold federal Section 8 housing vouchers under a bill passed by the state Legislature on Wednesday. If you’re interested to know more about becoming a HUD landlord, you can check out our complete guide to becoming one here. As long as you don’t cross any boundaries in that respect, you are free to approve or deny tenants according to your will. This does not mean you have to accept section 8, it just means you have to treat section 8 vouchers the same as any other income in your assessment. Like all government funded programs there is a lot of paperwork involved and a lot of requirements that cost the landlord a lot of time and money. 3. The simple fact is that all tenants, regardless of where their income is sourced from, need to be thoroughly screened to help ensure that you choose a good tenant. This can be attributed to such factors as: The phrase “Section 8 Housing” refers to a specific part of the national housing code that helps struggling tenants pay for housing. As is often the case in real estate, there is not a single answer to this question. Ultimately, the thing that matters most about Section 8 housing is not whether or not you are required to accept these vouchers. However, the opposite could be said because tenants have more incentive to stay in good status with the landlord’s policies to avoid losing their voucher. 1. No. Failure to do so can lead to eviction and discontinuation of benefits. Landlords prefer not to accept Section 8 because it is assumed that the tenants will be unstable financially and may have other social pathologies such as substance abuse or criminal activity, drugs etc. Through the Housing Choice Voucher program, Housing Works awards Housing Assistance Payments (vouchers) to those in need. These vouchers do not include an amount for the security deposit. While the majority of state laws do not require Section 8 acceptance, many cities and counties have adopted their own HUD housing ordinances. You can also find some specific information about each state’s rules on the HUD website. Section 8 is a rental assistance program run by the government. Are landlords required to accept Section 8 tenants, or are they able to refuse them? Within 2 months of moving in, the number of occupants in the apartment became 9 instead of 5. A: Yes – https://portal.311.nyc.gov/article/?kanumber=KA-01253, Q: Do I still have to pay my water bill? 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