Renovating for Section 8 & Rent Reasonableness
Looking to game the system regarding Rent Reasonableness.
I recently purchased my 1st investment property, intending to rent it out through Section-8 as a long term hold. It requires a full renovation. I met with the local Public Housing Authority this past Friday to get registered as a Landlord for the program.
One of the things they told me was that in addition to the minimum essentials list, the Inspector would take note of the Amenities the units offered: On-Site Laundry, Central or Window Unit AC, Dishwasher, Disposal, etc. They told me that depending on the amenities, they could potentially pay up to 120% of the local Fair Market Rent (FMR)!
Ideally, I would like a nice unit that I could take pride in; one that I would like to live in myself; however, time and money are limited. What Amenities have been shown to be worth it to get the extra 20% bump in FMR? Certain things, like garbage disposal, would require constant maintenance. I don't have room for a dishwasher either.
Carpet it on the list of amenities. It is a lot cheaper that the Vinyl Plank Flooring I was planning to install, however, it will need replaced after each tenant moves out. It gets dirty, musty, and moldy, and stained... nasty. However, carpet is an amenity! PHA said the average tenant stays in their unit 9 years or more, so I wouldn't have to change carpet that often I guess.
What other amenities would be worth considering in light of the initial expense and maintenance requirements?