Colorado has the 11th highest rent in the United States. Luckily, many Americans qualify for housing assistance, including Section 8 vouchers.
As a Section 8 landlord, you are guaranteed a majority of the rent amount. The government pays up to 70% of the rent, leaving 30% for the tenant to pay.
Following Section 8 housing laws is essential to becoming a Section 8 landlord. Keep reading to learn how you can navigate the process in Denver.
Becoming a Section 8 Landlord
A Section 8 tenant can apply to live on your property, but this doesn't automatically make you a Section 8 landlord. Housing vouchers are only available for certain rental units in Denver.
To qualify for Section 8, you need to set a fair rental price. The local Denver market, number of bedrooms, and amenities will all dictate what a fair price is.
The U.S. Department of Housing and Urban Development (HUD) determines the fair market rent. In Denver, the current fair market rent is $2,201. This value can change year after year.
If you do qualify to become a Section 8 landlord, there are additional steps you'll need to take.
Contact the Denver PHA
The Denver Public Housing Authority (PHA) will determine your eligibility as a Section 8 landlord.
You may house one Section 8 tenant or decide to establish your property as Section 8 housing overall. If you choose the latter, you'll need to fill out more paperwork.
Get Inspected
The PHA will inspect your rental property to ensure quality housing for Section 8 tenants. They will check that the basic needs of a renter can be met. The property must be well-maintained.
If you pass the inspection, you and the tenant will follow normal leasing procedures. Sign the lease and send a copy to the PHA for their records.
You must stay in touch with public housing agencies while the tenant lives on your property. If you plan to raise the rent in the future, you need to consult with the PHA. This may disqualify you from staying as a Section 8 landlord.
Benefits of Being a Section 8 Landlord
Section 8 tenants undergo background and credit checks to receive Section 8 vouchers. You don't have to allocate your resources to screening these tenants.
As previously mentioned, one of the main benefits of being a Section 8 landlord is guaranteed rent payments. You are always going to receive partial rent from the government.
Section 8 housing is in high demand because so many people qualify for assistance. You can keep vacancy rates low by becoming a Section 8-approved property.
Lastly, establishing your property as a Section 8 property leads to free marketing. Your listings will automatically end up on PHA-run websites. You can reduce your advertising costs with this perk.
How Property Managers Can Help
Becoming a Section 8 landlord comes with many benefits. However, it's not an easy process to get through. A property management company can help you set a fair rental price and maintain your property to help you qualify.
Laureate, Ltd., has been in the property management business since 1982. We have decades of experience helping Denver landlords maximize their income, even if it means applying as a Section 8 property.
We understand the local laws and can help you get started. Contact us today to learn more about our services.
