For those of you who are buy and hold investors, there is a little known resource to tap into when it comes to potential tenants. I came across this fabulous piece of 411 from a home study course of mine a while back. When looking for solid tenants with guaranteed on time rent, look no further than section 8. Here are some important tips, benefits and info when it comes to renting to section 8 tenants.
1. Find a good property manager to work with beforehand. Negotiate the fees, sign all the required management contracts and you should be in business. www.narpm.org is an excellent source of if you don't have a property management company already in mind.
2. Two sources to advertise your properties are www.socialserve. com & www.gosection8. com ...P.S…These are also great sources to find landlord investors who by the way are CASH BUYERS. See what properties these buyers are buying and market to them. Easy as pie.
3. Often because the waiting list for section 8 in most cities are several years longs with thousands of tenants waiting for affordable housing. This is a powerful rental market indicator.
4. Because section 8 tenants have their rents subsidized by the local & state governments, rents are paid on time without worry, normally between the 1st and 3rd of the month. If you elect to on the initial paperwork, the rents can be deposited directly into your account. If you happen to have a PayPal account, see if you can have your rents deposited into your PayPal account.
5. Because of the strict housekeeping rules of the program, if a tenant damages the house, there is a strong possibility that the person would be kicked off the program for good. This is strong incentive for the tenant to obey the rules.
These are just a few of the highlights of opening up your buy and hold strategies to section 8 tenants. Just because these folks are not soccer moms or up and coming suit and tie business professionals, does not mean toss them to the side. It's about a reliable source of income. Keep yourself open to all possibilities. Happy investing.
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