Section 8 housing is nothing to look down on. Just this year, 100 struggling seniors in San Jose found a place to live thanks to this low-cost housing opportunity.
It's not just the way Section 8 helps people that should turn the heads of San Jose landlords. You could possibly increase rental income with Section 8, too, among other things. But is it worth it to take the dive and change up your current portfolio goals?
Sadly, there's no easy way to put it in a sentence or a paragraph. So read along as we discuss the key Section 8 program benefits you stand to gain in San Jose.
Section 8 Payments Are Always On Time
One thing that really stresses out landlords is late payments. You're probably juggling a mortgage and property taxes, both of which are harder to pay with late rent. Rent late fees often don't help recoup the cost if you had to go into debt.
Get PHA Payments on the Dot
The PHA (Public Housing Agency) will be the one in charge of the voucher that your Section 8 tenant applied for. As a result, you'll receive an automated payment of 70% exactly on the due date, period. Then, even if the tenant is late on their 30% share, it's not as devastating as a full late payment.
The Tenant's Employment Status Won't Affect You
This housing assistance for landlords is great because it protects you if the tenant loses their job. In a normal situation, your best bet would be to serve an eviction notice. That can take months to finalize, and all the while, you're not making any money.
Contribution Adjustments for Loss of Work
With Section 8, the PHA adjusts its contribution if a tenant loses their work. So ironically, it's the low-cost housing that has better overall rent protections.
Your Rental Will Be Well-Maintained
A common misconception is that since it's low-cost housing, a Section 8 rental will get trashed. Landlords imagine their properties being depreciated. Somewhat counterintuitively, Section 8 rentals are actually more likely to stay in good condition.
How Section 8 Keeps Tenants Accountable
There are two reasons why your rental welfare will fare better with a Section 8 tenant. One, it's incredibly difficult for them to find an apartment in the first place, so they won't want to mess up that opportunity. They plan to stay long-term and treat the place like it's their own.
Two, your local PHA will pop in regularly to check on the property and make sure the tenant is maintaining it. If they are failing in their responsibility to you, that risks future rental opportunities. This adds an extra layer of assurance since you probably already have your property management dropping by for inspections as a redundancy.
Choose Section 8 with Provident
Section 8 can sound like a bad word in the real estate world, but it shouldn't. Landlords who go with it get consistent rent payments and protections against tenant job loss. Importantly, they go in with the assurance their apartment won't be trashed, either.
Provident Property Management in San Jose can help you build a portfolio with Section 8. Our prudent, care-focused team helps you build that passive income dream life. Drop by or give us a call and see how we can make those dreams a reality.
