19 - The Section 8 Government Program explained

Registering as a Landlord

This is what the local Housing authority will require:

Housing Choice Voucher (Section 8) Program Registration - Checklist

1 - Registered copy of the Act of Sale (Deed)

2 - Valid Photo ID

3 - Property Management Agreement or Power of Attorney Agent (if applicable)

4 - Social Security Card or TAX ID number (copy of letter from the IRS)

5 - Voided Check (for Direct Deposit)

They will generally send an inspector out to take a look to make sure you have all safety considerations taken care of such as:

a) All electrical to code  / outlets grounded, no crazy wiring/broken bulbs and the like.

b) All plumbing in working order...no leaks, squeeks or places for water to seep.

c) All mechanical systems (AC, etc) working and not leaking.

d) The walls, floors, all surfaces without holes, poles or random folds.

e) Last but not least, all life safety checks there and operational such as smoke and carbon monoxide detectors, at least one fire extinguisher and railings in the right places in the right cases.

Registering your Place

What you need to register / list your Place with Housing Authority

In the United States, Housing Authorities help you market your property.  It's pretty darn awesome because you can do your regular online marketing while having HANO direct leads to you for free!

The Housing Authority (known as HANO in some areas), will want to know about your place:

Housing Choice Voucher (Section 8) Program Property Listing

1 - Address of Available Property

2 - Apt Number

3 - City

4 - State

5 - Zip Code

6 - Housing Type - Single Family Home

7 - Housing Type - Duplex/Double

8 - Housing Type - Townhouse

9 - Housing Type -Apartment Complex / Garden Walkup

10 - Number of Bedrooms

11 - Security Deposit Amount Required

12 - Requested Rent

13 - Owner Paid Utilities: Electric

14 - Owner Paid Utilities: Gas

15 - Owner Paid Utilities: Water

16 - Date Available for Occupancy

17 - Phone number for Inquiries (1)

18 - Phone number for Inquiries (2)

19 - Contact person or agent name

20 - Date Submitted ((put an automatic time stamp when the hit the submit button)

21 - Website to view property (1) 

22 - Email address of Contact Person

Getting Paid

Yearly Inspections

GETTING PAID.  Generally the housing authority will give you a direct deposit (what we call “making money while you sleep”.  This is the general breakdown of how the authority pays.  Below is an example:

The BASIS for the PAYMENT STANDARD (Effective October1, 2014 and changes every few years)

A Landlord will get between 95% - 108% of Fair Market Rent (FMR) 

Fair Market rent is that rent that anyone, anywhere would want to rent your place for.

The basis is generally a combination of the Fair Market Rents in the are and the number of Bedrooms in each unit.  Considerations may also be given for number of bathrooms.

Studio - about same or alittle less than a 1 bedroom

1 Bed - Close to or a little less than market rate.

2 Bed - About 22 % more than 1 bedroom

3 Bed - About 55 % more than 1 bedroom

4 Bed - About 88 % of a 1 bedroom

5 Bed - About double that of a 1 bedroom

6 Bed- About double that of a 1 bedroom

7 Bed- About double that of a 1 bedroom

From this, one can see that from an Owner perspective, more than a 4 bedroom there are diminishing returns for the money you can make, or the opportunity to give a deal to a family which could give you a longer term tenant.  Remember, this is a guide, for each State, City, County/Parish, and township these breakdowns will vary.  

Start with this as your basis when analyzing one property with another, and look closely at the history of how a property (if existing) was run in the past and how you will run it in the future.

HOW THE HOUSING AUTHORITY PAYS YOU

Generally the housing authority pays you automatically on a specific day of the month, every month and most often now by direct deposit!  I can't think of a nicer way to say "Good Morning me!" than waking up to "moe money" in my account!

Yearly inspections by Housing Authority

Prior to getting your space rented, an inspector is sent out to make sure there are no safety issues and that your place is what you say it is in the condition you say it is.

Once a year the inspector will come back out to make sure all is good with your place and the tenant.

This inspection is pretty basic and covers making sure all outlets work, there are no leaks with the plumbing or air conditioning and that all appliances work and in decent condition.

Each area has their own checklist.   Take it seriously and it is strongly recommended to go beyond their minimal requests.  What became part of our process as a landlord was to personally ask and provide little additional things such as handles, railings, quality plumbing fixtures that for you, the Landlord are a few dollars and seconds to install...but for the tenant (and the Housing Authority) you become an exceptional, listening, caring human being caring for others.  This approach (taking their checklist and having your own to show) creates a connection that goes far beyond simply the inspector having to deal with another slumlord.  Instead, you become the hero and your long term commitment keeps your wallet full.  

Check with your local Housing authority and carry the aforementioned lists to make sure you have all your bases covered as you work through the process.