Why Section 8 Can Be Great! (Part II)
The previous posting dove a little deep and then shallowed out with a discussion on Section 8 in low income/urban core style areas.
To add to this topic you must look at the suburban environment and how Section 8 can be effectively used in these areas as well.
Granted, it is much easier to lease a property in an area known for moderate income but there are still challenges. In particular, when there are competitors all vying for the same tenant base.
Being a believer in going against the marketing grain, I try to find tenant pools in areas overlooked by competitors. For some reason, many in this market fail to seek out Section 8 tenants. The assumption being that they simply do not want to live in areas they are not accustomed to or can't due to logistical issues. But this can be a fallacy that loses you a guaranteed rent.
As said in the previous post, Section 8 did originally have a purpose (and still does albeit not as actively oriented to accomplishing). The purpose was to find a way to subsidize low income families in order to get them out of low income areas and into a better environment. This was to assimilate those with the "thinking" of low income into the "thinking" of those of middle to moderate income. The theory was that by surrounding such families with a sound environment, those families could focus on achieving success vs. merely surviving.
With this in mind, don't assume that a Section 8 tenant would not be interested in your home. On the contrary, expect them to run not walk toward any property that allows Section 8 vouchers... if they are serious about stepping out of poverty and into a better life. What makes this an excellent combination is the fact that they are working towards a better life... normally a person with a goal will protect the foundation that is supporting them. In this situation, its your property foundation and don't be surprised if they treat it better than someone in the open market simply settling for the next rental property on their list.
To add to this topic you must look at the suburban environment and how Section 8 can be effectively used in these areas as well.
Granted, it is much easier to lease a property in an area known for moderate income but there are still challenges. In particular, when there are competitors all vying for the same tenant base.
Being a believer in going against the marketing grain, I try to find tenant pools in areas overlooked by competitors. For some reason, many in this market fail to seek out Section 8 tenants. The assumption being that they simply do not want to live in areas they are not accustomed to or can't due to logistical issues. But this can be a fallacy that loses you a guaranteed rent.
As said in the previous post, Section 8 did originally have a purpose (and still does albeit not as actively oriented to accomplishing). The purpose was to find a way to subsidize low income families in order to get them out of low income areas and into a better environment. This was to assimilate those with the "thinking" of low income into the "thinking" of those of middle to moderate income. The theory was that by surrounding such families with a sound environment, those families could focus on achieving success vs. merely surviving.
With this in mind, don't assume that a Section 8 tenant would not be interested in your home. On the contrary, expect them to run not walk toward any property that allows Section 8 vouchers... if they are serious about stepping out of poverty and into a better life. What makes this an excellent combination is the fact that they are working towards a better life... normally a person with a goal will protect the foundation that is supporting them. In this situation, its your property foundation and don't be surprised if they treat it better than someone in the open market simply settling for the next rental property on their list.
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