During these trying times for both homeowners and renters, we are seeing many tenants being unable to pay their rent. With unemployment skyrocketing, this will probably be a trend next month too.
In my duplex, one of my renters uses HUD vouchers (Section 8). This part of the rent alone is enough to cover my mortgage and pay my property manager. I am still stuck paying my loan for my down payment, but I am good on that for now thanks to cash reserves. If you have vacancies, consider contacting your local HUD office to see if you can add one of your units to the list. People on HUD need a place to live too.
Don’t be scared of the image that comes with renting to Section 8 tenants. They have to qualify and they do not want to lose their ability to keep the voucher. There are four things that are looked at to determine if someone qualifies for Section 8 (some locations may have even more restrictions) family status, income level, must be a U.S. Citizen, and no eviction history.
Here is the benefit. You will get a significant portion of the rent covered by HUD. For my tenant, they cover 95% of the rent. So even if they cannot pay, it doesn’t put me in such a bind. Keep your tenants happy so they stay and you do not lose the voucher. I immediately did repairs when I purchased the property and became their landlord. I think this sent a message to them that we do in fact care about their living condition and make them happy.
While this might not be the right route for everyone, its still something to consider during such trying times. I am keeping this post short and sweet, but it is something to think about. Hope you all are staying healthy and keep pressing forward. Don’t let the pandemic sink you!