A lot of landlords become intrigued about filling their vacancies with a Section 8 Tenant and his or her rent payment coming from the government instead of depending upon the tenant. However, there are some rumors that overstate some of the benefits of the program.
Tenant Referrals
The Michigan State Housing Development Authority (MSHDA) does not refer tenants to your property. However, they do provide a service that allows you list your home to prospective tenants for free (on www.RentLinx.com through www.MichiganHousingLocator.com).
Tenant Screening
MSHDA will not screen your tenants for you. However, MSHDA will ensure that your tenant fulfills the requirements to remain in the Section 8 Housing Coupon Voucher (HCV) program. Often, there is a long waiting list for a tenant to gain acceptance after reapplying. So most tenants are pretty motivated to be good tenants. As a landlord, you have to arrange your own final screening, though.
Security Deposit
MSHDA does not pay for the security deposit. MSHDA pays for the predetermined portion of the tenant’s rent payment.
Rent Guarantee
MSHDA does not guarantee entire rent payment. However, they guarantee their predetermined amount for each individual tenant based upon (a) the tenant’s income level, (b) the number of the tenant’s dependents, and (c) what is considered to be a reasonable rent level compared to similar properties within the area. The tenant needs to pay the remaining portion of the rent. Sometimes, it happens that MSHDA pays the entire rent amount.
Resolving Tenant Problems
MSHDA will not resolve disputes between landlords and tenants, even if the tenant is a Section 8 tenant. However, if the tenant repeatedly is not complying with the lease terms or violates a serious offense, you should follow the eviction process as if this is a standard tenant. Only, you must notify the housing authority about any actions you are taking.
Inspections
MSHDA requires each property to be inspected. These are called Housing Quality Standard (HQS) inspections. Also, there are inspections required by the city to ensure the property adheres to its building codes. These inspections are separate from the HQS.
The HQS inspection occurs when a Section 8 tenant first moves into a property. They also inspect the property annually. They might also inspect it upon hearing a complaint or as part of an audit process.
Move Out Inspections
MSHDA does not report inspection upon a tenant’s departure. Tenants are responsible for damage to property beyond the normal wear and tear. Report all damages to the housing authority, and cases will be handled on a case-by-case basis.
There are many upsides to filling a property’s vacancy with a Section 8 tenant; however, it is important to know the difference between actual fact and rumor-based fiction before you fill a vacancy.
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