Florida has two key housing programs to address homelessness. These are the Housing Opportunities Program and the federally sanctioned Section 8 housing program. Both of these have benefits for both landlords and tenants in Orlando.
Section 8 housing is the larger of these two and helps rental property owners avoid vacancies and receive a reliable income from their tenants. To qualify for these benefits, you must meet a few criteria, including charging reasonable rent prices.
Read on to find out how the government decides on these issues and whether this arrangement could suit you.
The Benefits of Being a Section 8 Landlord
The Federal Section 8 housing program determines tenants' needs based on certain income limits. Families that qualify for the program receive vouchers to pay a portion of their rent.
Tenants must apply for housing via the Orlando Housing Authority. If they succeed, the city tries to match them with suitable accommodation from their pool of available Section 8 dwellings.
Landlords who offer their properties as part of the Section 8 program enjoy several benefits. These include a guaranteed income of at least 70% paid with housing vouchers.
The tenant must pay the balance of the rent and keep the property in good condition to stay in the program. Section 8 tenants are highly likely to renew their leases due to a lack of other options.
If you're interested in including your investment property in the Section 8 housing pool, you must agree to a preliminary inspection, and you must charge rents in line with market trends.
What Is Reasonable Rent?
As a rule of thumb, landlords should charge rent that's close to 1% of the value of their property, but it's advisable to adjust this by carrying out rental comps in your area. Landlords must also consider their monthly costs when setting rental rates.
The Section 8 housing authorities use a similar formula to calculate whether your rent is reasonable or not. They will use rental comps to determine a fair market rental rate based on the following:
- Neighborhood prices
- The property's age
- The size of the property
An experienced property manager or real estate agent can help you set rent prices in line with the prevailing real estate market. This will help you decide whether it's worth applying to become a Section 8 landlord before subjecting yourself to the lengthy property inspection process.
There's an Easier Way to Limit Rental Vacancies
Section 8 housing is a low-risk option for Orlando landlords, but it can yield slim profits. If you own suitable housing with low monthly costs, it's something to consider.
If you'd rather benefit from charging higher rentals, a property manager can help you find tenants and set attractive rents to limit vacancies. Their services encourage lease renewals and help you navigate the intricacies involved in these negotiations.
RightHouse Realty LLC can assist you with managing Section 8 housing and regular rentals. We offer a comprehensive range of property management services, including rental analysis and rent collection.
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