Keeping your properties fully occupied throughout the year increases your cash flow and provides a better return on your investment ROI but can be a difficult task! The longer a Unit remains unoccupied the less ROI landlords are going to have.
Below are several channels available to landlords to find qualified tenants:
- Retail Market - Newspapers, Word of Mouth, Church, For Rent Signs on property, internet, etc...
- Multiple Listing Service MLS - Database Realtors use to find rental properties for their clients
- Section 8, Plan Ocho, Sec 8, Plan Eight, Plan 8, Section Eight - Government subsidized rental payment plan.
The more channels you have, the greater possibility of finding a qualified tenant for your unit. SPEED is essential for success. Any delay will hurt ROI.
Section 8 will eliminate a lot of the drawbacks of being a landlord but you have to follow HUD's guidelines to be successful.
One part of the guidelines is the unit or property must pass an interior and exterior inspection. If you fail the inspection, more delays and your ROI will be affected. Being prepared for the inspection will help make the rental transaction a smooth process.
From my experience with Section 8, below is a list of items that will fail a HUD inspection:
- Smoke alarms missing or not working.
- Lack of ventilation in bathroom.
- Outlet covers missing or broken.
- Infestation by bugs or vermin.
- Absence of handrails where 4 or more consecutive steps.
- Utilities disconnected (must be connected).
- Hazards (i.e. tripping as a result of floor covering or exposed electrical wiring.
- One window in each room must open and have a screen.
- Chipping paint on the outside of the building – gutters, outside surfaces of building.
- Hazardous hole or trash in the yard.
- Door not sealed properly (light can be seen coming through).
- No hot or cold running water.
- All windows must have sash cords or balancers and must stay in the open position without assistance.
- All ceilings must be at least 7 feet in height in areas used for living, sleeping, etc….
- All steps to landing or basements have handrails.
- Baths without windows must have power fan or gravity vents in high rise buildings.
- Open electrical distribution box must be covered with appropriate cover.
- Windows in bedroom too small and will not qualify as areas for sleeping.
- Security bars (rejas) can’t be opened from the interior will not be allowed to remain.
- All bedrooms must have a built in closet.
Related Links, Blog Postings, Presentations or Articles:
- Our Section 8 telephone interview - Podcast
- Our Sec 8 Power Point presentation given to the Miami Real Estate Investor Association MREIA
Real Estate Investor
Telephone #: 305-586-5280
|Our Internet Footprint:|