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Colorado currently has the 12th highest rent in the United States. Luckily, around 15% of Americans qualify for housing assistance, including Section 8 housing vouchers. Meeting Section 8 housing landlord requirements gives you a 70% govt-backed income; tenants only need to provide 30%.
However, adhering to Section 8 housing regulations is crucial for those interested in becoming Section 8 landlords.
Continue reading for tips on meeting the requirements in Denver.
Determine Section 8 Eligibility With the Denver PHA
To join Section 8, you need to meet the current Fair Market Rent (FMR). The local Denver market, number of bedrooms, and amenities will all dictate FMR.
The U.S. Department of Housing and Urban Development (HUD regulations) sets the price, and this will change year after year. Right now, the FMV for a 2-bedroom home in Colorado is $1,339 per month.
Remember, Section 8 covers the majority of the tenant's rental expenses, but not the entire amount. The security deposit is also not included in Section 8's coverage. The landlord is in charge of obtaining this deposit from the tenant or another organization that has agreed to cover it on the tenant's behalf.
Annual Inspections
The first step in obtaining approval for a Section 8 tenant on your property is to fill out the Request for Approval Form. However, the Housing Quality Inspection is the true measure of eligibility. This thorough inspection evaluates whether your unit meets the minimum housing standards set by HUD and the Denver Public Housing Authority.
If any issues are found during the inspection, they must be resolved within a specified period of time. Once the problems are resolved, the unit must undergo a re-inspection. An annual inspection is conducted by Section 8 when the tenant's lease is up for renewal.
Even if the unit passed the initial Section 8 inspection, it must continue to meet rental property compliance during the yearly inspection for the tenant to remain on the property.
Section 8 Housing Landlord Requirements for Lease Agreements
When renting to a tenant with a housing choice voucher, it is important to adhere to the terms of the lease agreement and comply with local landlord-tenant laws, just as you would with any other tenant. It is not acceptable to cut corners when dealing with Section 8 tenants because their rent is being covered by the government.
This means promptly addressing maintenance needs, addressing any health or safety issues, and handling any grievances they may have about fellow tenants. It is crucial to be extra vigilant when dealing with Section 8 tenants, as both the Public Housing Authority and HUD will closely monitor you and your property.
Rent Increases
To increase the rent for a Section 8 tenant, you must send a request to the Denver PHA and complete a form. The form will require information such as the current rent, proposed rent, and effective date.
Additionally, you must confirm that the rent you are proposing is not higher than the rent for similar units on your property. This can only be done once per year.
Ensuring Rental Property Compliance With Section 8 Housing
Working with a property management company can assist in meeting Section 8 housing landlord requirements and ensuring the upkeep of your property, maintaining eligibility through every renewal.
At Laureate LTD., we've been helping landlords manage their properties since 1982. Contact us to learn how we can help you and your tenants with housing assistance.
