As many landlords are scrambling to shore up cash flow, there are some who are enjoying relative stability: those who manage affordable housing units.
Proponents of government housing assistance programs like Section 8 have for some time been touting the benefits for landlords, like more reliable rent payments. During this current crisis, their advice is ringing true. Because these tenants are the most vulnerable, they stand to receive the most assistance for job losses and other hardships, and today, their landlords are the most likely to receive rent payments.
In addition to a reliable income source, there are many benefits to accepting tenants on voucher programs, such as:
Higher initial rent and allowable rent increases;
A ready list of prospective tenants;
Tenants who have undergone criminal background checks. In some cities and states today, private landlords cannot consider criminal history; and,
Higher tenant retention and lower vacancy rates.
Of course, there are the downsides, like bureaucratic paperwork and increased property inspections. But HUD has signaled that it is working to lessen those burdens.
There is another advantage to landlords accepting housing vouchers: the more voucher recipients who find housing, the less likely city or state lawmakers will impose rent control measures.
Government-sponsored rent programs have their downsides, but they are helping landlords who accept them pay the bills at a time when the private market is reeling from sudden and widespread unemployment. Subsidized renters may not be your thing, but then again, maybe it’s time to reconsider.
This post is provided by Tenant Verification Service, Inc., helping landlords reduce the risks of renting with fraud prevention tools that include Tenant Screening, Tenant Background Checks, (U.S. and Canada), as well as Criminal Background Checks, and Eviction Reports (U.S. only).
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Disclaimer: The information provided in this post is not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.