Not all that long ago, the D.C. Housing office adjusted the payment standards because too many voucher holders were being priced out of certain neighborhoods. They increased the amount to incent owners to rent to city clients who can pay with municipal vouchers, also known as “Section 8” tenants.
In some cases, renting to Voucher Holders can mean very good things for property owners. Indeed, many receive a substantial surplus each month when the markets are a bit wonky as they have been here in DC for some time.
Here’s a few of the upsides to renting to Voucher Holders:
- Voucher holders tend to remain longer in the rental, 5-8 years or even longer.
- The rental price is funded by the Office of Housing and Urban Development (HUD) and local sources.
- Rarely is the agreed to rent revised downward by HUD.
- Program officers provide some oversight conducting annual inspections to ensure the tenant is taking care of the property.
- The inspectors are keen to not tolerate criminal activity.
- Inspections ensure that only the approved, named residents are living in the rental.
Here’s a few of the downsides to renting to Voucher Holders:
- Notable administrative burdens affect the property management company resulting in an on-time surplus of $250 to submit a new lease package to DC Housing.
- Each year, DC Housing conducts an inspection to make sure that the tenant is taking care of the apartment and that the landlord is maintaining it. Those inspections will incur additional $100 charge.
- If inspectors find landlord violations, they will require repairs even if the tenant caused those damages.
- Some Voucher Holders do not take good care of the property, so you should plan on setting aside at least one month’s rent per year to make repairs.
- With proper screening, a good property management company can help you lower your risk and exposure to fines.
Some great resources with significant experience with Voucher-based renting include:
2. FellowPM company
Thank you for letting all the folks above know Columbia Property Management referred you to them.
Scott Bloom, Owner and Senior Property Manage
Columbia Property Management
Scott Bloom founded Columbia Property Management (CPM) in 2012. And today, he is both the owner and senior property manager. CPM’s goal is to provide a powerful, personal level of service to our clients. We focus on smaller landlords, professionally managing their assets, so they can succeed by investing in rental real estate. Scott is an active member in multiple professional organizations including the National Association of Residential Property Managers.