How to Lease to Section 8 Housing Choice Voucher Program Participants and Get Guaranteed Monthly Rent Payments!

Leasing your properties to the Housing Choice Voucher Program participants can generate some good-ass, consistent monthly income, as I stated in my previous article, Why I Lease to Section 8 Housing Choice Voucher Program Participants. The process is not as difficult or tedious as some people believe it to be (don't listen to them!). In this article, I list the steps you need to take in order to have a smooth application process. Every Public Housing Authority (PHA) is different, so be sure to check out their guidelines. I am in the Dallas/Ft. Worth area of Texas. However, most of the steps are very similar.

Step 1: Attend the Free Landlord’s Workshop

Click here to find your local PHAs and check out the workshop schedules. The workshop is mandatory and you only need to attend once. If you don’t have time to attend, you can send your agent. The workshop helps landlords/agents understand about the Housing Choice Voucher Program as well as the PHA guidelines. Every Public Housing Authority (PHA) guideline is different, so don’t be a lazy-ass and make sure you or your agent attend the workshop. During the workshop, landlords will be able to ask questions, and a packet will be provided that includes all the information needed to participate in the program.

Step 2: List Your Property for Free on www.gosection8.com

Once you list your properties on www.gosection8.com, just sit back and prepare to hear all the ding, ding, ding….ring, ring, ring! This website provides a wealth of information for landlords as well as tenants. You may also get calls from non-voucher program tenants through this website.

Step 3: Screen the Potential Tenant

Although PHA screens all their participants during the application process as well as during annual re-examinations, they recommend that you do your own background check as well. I usually don’t do a background check because I know they don’t have a criminal background or evictions. You can’t go base on credit score because most of them do not have very good credit. I do, however, thoroughly ask them questions and get to know their family situation. You would ask them the same questions as you would ask non-voucher tenants. I also meet with them like I would meet a non-voucher tenant.

Step 4: Ask for Their Voucher and the Request for Tenancy Approval Packet (RFTA):

Once you have determined that a family is a suitable candidate to lease your property, ask for their voucher to make sure they have a valid voucher, and the RFTA packet. The voucher lists their name, expiration date of the voucher, and the PHA’s Name and Title and signature. The RFTA packet includes all the forms you need to fill out and provide to the PHA. Here is a sample list:

• Request for Tenancy Approval
• Certification of Additional Amenities (only some PHA requires this form)
• Acknowledgement of Rent Responsibility
• Completed IRS W-9 for Property Owner(s) or Agent (if applicable)
• Lead-based Paint Disclosure
• Vendor Number Verification form (only some PHA requires this form)
• Direct Deposit Sign-up form with a voided check attached
• Vacate Notice – this is the participant’s responsibility but it needs to be included in the RFTA packet

Step 5: Complete the Request for Tenancy Approval Packet (RFTA) and Turn it in to the PHA:

It seems like a lot of paperwork but you can complete the packet in less than 15-20 minutes.

You need to include these documents along with the RFTA packet:

• Proposed Tenant Lease Agreement (does not need to be signed or have effective date)
• Warranty Deed, filed and recorded (only some PHA requires this document)
• A copy of SSN or EIN number and your Driver’s license
• Management Agreement, if applicable (only some PHA requires this form)

Once you have complete the RFTA packet and gathered all the documents, depending on the PHA, you can fax it or email it to the PHA officer, or you must go to their office and turn in the packet. The PHA staff will review the packet for rent reasonableness, completeness and accuracy. After the packet is accepted, the PHA will process a request for inspection.

Step 6: Prepare the Unit for Inspection

Inspection can be scheduled within 7 days. The unit must pass inspection, known as the Housing Quality Standard (HQS) Inspection, before a HAP (Housing Assistance Payment) contract is executed between you and the PHA. To ensure that your unit pass inspection during the first visit, go to the PHA’s website and look for Inspection Information. The Section 8 participants are knowledgeable in what the inspectors look for so they can also help you walk through the unit and make sure the unit pass inspection during the first visit.




Step 7: Sign the HAP Contract With the PHA, Sign Lease Agreement With the Tenant

After the unit passed inspection, a PHA officer, known as the participant’s caseworker, will contact you. If there is any issue with the rent amount, that needs to be worked out before the HAP contract is executed. After both parties agreed on the rent amount, then the HAP contract can be executed between you and the PHA. In order to complete the execution of the HAP contract, you must sign a Lease Agreement with the tenant and provide a copy to the PHA. The contract dates should match the dates on the HAP contract. The contract term must be 1 year. You decide when you want to sign the lease agreement with the tenant, either after the unit has passed inspection or wait until the caseworker contact you. Always ask for a security deposit, like you would with a non-voucher program tenant.

Step 8: Allow the Tenant to Move In and Watch Your Bank Account Grow Monthly

If you allow the tenant to move in on the date other than the 1^st of the month, PHA will prorate the amount. You will get your first HAP payment within 30-45 days of the execution of the HAP contract. Your first payment will include the prorate amount and the current month’s rent. All subsequent payments will be direct deposited to your account around the 1^st business day of each month.

Easy-peasy? You can have a tenant move-in within 2 weeks, but that all depends on the PHA, as well as you. If you have all the paperwork ready and the unit is in good shape, you should have no problem with the process. After you’ve done this process once, subsequent processes for other participants is easy-peasy!

If you have any questions regarding the voucher program, please feel free to comment below or contact me and I will try my best to answer your questions. Thanks for reading and have a good one.

Disclaimer: All content is the opinion of the author. No investments is guaranteed to generate income. Please do your own research before you jump into anything crazy.

Credits: www.gosection8.com