How to Become a Section 8 Landlord in PA| HVC Landlord in PA
As a landlord, the goal is to rent your property quickly to tenants who will pay in full and on time. Therefore, one way to increase the applicant pool is to become a Section 8 landlord. By working with the local public housing agency that administers the Housing Choice Voucher Program, owners can make their properties available to eligible voucher holders. In Philadelphia, the program is administered by the Philadelphia Housing Authority (PHA). A portion of the approved rent is paid directly to the landlord by the housing authority, while the tenant is responsible for their share. So, is becoming a Section 8 the right choice for your rental portfolio? Continue reading below as we discuss the process of becoming a Section 8 landlord in PA, along with the pros and cons and tips to be successful.
Main Takeaways
- The Housing Choice Voucher (HCV) Program helps eligible low-income households afford private rental housing, with local housing authorities administering the program.
- Landlords who participate must follow program requirements, including rent approval, property inspections, required paperwork, and ongoing property standards.
- Renting to voucher holders can provide reliable housing assistance payments and access to a larger applicant pool, but landlords should still use their standard, legally compliant tenant screening process.
What is Section 8 Housing?
The Housing Choice Voucher (HCV) Program, commonly referred to as Section 8, is a federally funded rental assistance program administered by local public housing agencies. This program helps low-income families and individuals, along with elderly and disabled persons, find suitable housing in counties and metro areas across the United States.
Suitable units can include multi-family subsidized housing, townhomes, condos, and single-family homes. Rental homes must first go through an approval process with a local housing authority. Philadelphia property management companies can also help rental owners navigate local requirements and the day-to-day responsibilities that come with managing qualifying properties. Once approved for the program, participants can search for an eligible rental unit that meets applicable program requirements.
Who is Responsible for What in Section 8 Rental Housing?
When a landlord rents a unit to a Section 8 tenant, they enter into a lease as they would with any new tenant. However, with the addition of the Housing Authority comes added responsibilities. Let’s review the roles of a landlord, tenant, and housing office in a Section 8 contract below.
Landlord’s Obligations
- Meet Applicable HCV Property Inspection and Housing Quality Requirements
- Provide Safe and Sanitary Housing
- Comply With Rent-Reasonableness Requirements
- Maintain Standards of Living for the Duration of the Lease
- Provide Agreed-Upon Services per the Lease
Section 8 Tenant’s Obligations
- Enter into an Approved Lease that Complies with HCV Program Requirements
- Pay any Lawful Security Deposit Required Under the Lease
- Comply with all Lease Terms and Addendums
- Maintain the Rental Unit in Good and Sanitary Condition
- Report Maintenance Issues Immediately to the Landlord
- Pay the Tenant Portion of Rent in Full and On-Time
- Inform the Housing Authority and Landlord of any Financial, Familial, or Occupant Changes
Housing Authority’s Obligations
- Evaluate the Voucher Applicant’s Income and Family Composition Annually
- Inspect Rental Units as Required by the HCV Program
- Assist Applicants in Locating Suitable Housing
- Facilitate Payments to Landlords for the Housing Authority Portion of the Rent
- Ensure Both Landlords and Tenants Follow Program Rules
How to Become an HCV Landlord in Pennsylvania
In Pennsylvania, the requirements for participating in the HCV Program vary depending on the local housing authority. In Philadelphia, landlords working with voucher holders must follow PHA’s participation requirements and applicable source-of-income discrimination laws.
However, the exact process may vary depending on the local Housing Authority. In Philadelphia, landlords working with PHA generally complete the following steps:
- Attend an Owner Briefing (Optional)
- Complete Owner Certification Training
- Create a PHA Owner Portal Account and Submit Documents
- Advertise the Property and Complete Tenant Approval
Attend an Owner Briefing (Optional)
PHA offers free Owner Briefing Sessions for landlords and property managers who want to learn more about participating in the HCV Program. These sessions are optional, so landlords should check PHA’s website for current scheduling information.
Complete Owner Certification Training
The first required step is registering for free HCV Owner Certification Training. Certification Training aims to familiarize owners with the rules and responsibilities of participating in the program. Additionally, practical advice helps owners learn how to use the program effectively and successfully. PHA currently conducts its required Owner Certification Training virtually. Landlords should check PHA’s website for current registration and scheduling information.
Create a PHA Owner Portal Account and Submit Documents
After completing Owner Certification Training, landlords create a PHA Owner Portal account and submit the New Owner Application and required documents. Once PHA creates the owner’s account and ID, the landlord can advertise available units.
Advertise the Property and Complete Tenant Approval
Once the property has been marketed, applications have been reviewed using consistent and legally compliant screening criteria, and a prospective tenant with an HCV has been approved, the landlord submits a Request for Tenancy Approval (RFTA) through the PHA Owner Portal.
Pros and Cons of Becoming a Section 8 Landlord in PA
As with any business decision, rental owners must weigh the pros and cons before becoming a Section 8 landlord in Pennsylvania. Therefore, to help with your decision, check out our list of important considerations below.
Pros of Being a Section 8 Landlord
- Consistent Rent Payments- Once the HCV tenancy is approved, the housing authority generally pays its portion of the rent directly to the landlord, while the tenant remains responsible for their required portion. Participants must comply with applicable lease and program requirements, and failure to meet those obligations may jeopardize their tenancy or continued program participation.
- Tenant Eligibility Screening- The housing authority determines whether a household meets HCV program eligibility requirements. Landlords remain responsible for evaluating prospective tenants under their consistent, legally compliant screening criteria.
- Increased Listing Exposure- There is an extensive database of tenants in Pennsylvania just looking for Section 8 properties. HUD and other local Housing Authority sites offer free websites to advertise dedicated Section 8 housing. In turn, this helps landlords reduce marketing costs and get the rental listing in front of more applicants.
- Lower Vacancy Rates- Unfortunately for tenants, many areas face supply shortages of suitable Section 8 housing. So, when vacancies occur, they fill quickly, and those who enjoy their rental home tend to stay! This is a plus for landlords worried about frequent and expensive turnover costs.
Cons of Being a Section 8 Landlord
- Rent Approval Requirements- The housing authority reviews the proposed rent to determine whether it is reasonable compared with similar unassisted rental units. Factors such as the property’s location, size, condition, and amenities may be considered.
- Delay in 1st Month’s Rent- Housing assistance payments may not follow the same timing landlords are accustomed to with an unassisted tenancy, particularly while initial program paperwork and approvals are being completed. Landlords should review PHA’s current payment procedures and plan accordingly.
- Property Inspections- To qualify for and maintain a contract with the Section 8 program, landlords must undergo routine property inspections to ensure tenant safety. Some landlords can find these inspections and regulations cumbersome.
FAQs About Becoming a Section 8 Landlord in PA
Becoming a Section 8 landlord can come with additional paperwork and requirements, especially for owners who are new to the Housing Choice Voucher Program. Here are answers to a few common questions Pennsylvania landlords may have before getting started.
Do landlords have to accept Section 8 in Pennsylvania?
Pennsylvania does not have a statewide source-of-income law requiring every landlord to accept Housing Choice Vouchers. However, local laws may apply. For example, Philadelphia prohibits housing discrimination based on lawful source of income, including Housing Choice Vouchers. Landlords should check the requirements that apply where their rental is located.
How does a landlord become a Section 8 landlord in Pennsylvania?
The exact process depends on the public housing agency that administers the program where the property is located. Generally, the landlord finds or approves a voucher holder, completes the required tenancy paperwork, proposes the rent, and has the property inspected. The housing agency must approve the unit and rent before housing assistance payments begin.
Can Section 8 landlords choose their tenants?
Yes. Landlords may screen prospective tenants using consistent screening criteria, provided those criteria comply with applicable fair housing, source-of-income, and other relevant laws. Participation in the HCV Program does not replace the landlord’s own tenant screening process.
How much rent can a Section 8 landlord charge?
The housing authority must determine that the proposed rent is reasonable compared with similar unassisted rental units. Payment standards and other HCV requirements may also affect how much assistance the household receives.
Do Section 8 properties have to pass an inspection?
Yes. A rental unit must meet the applicable HCV inspection standards before an assisted tenancy can be approved and must continue meeting program standards during the tenancy. Housing agencies also conduct periodic inspections.
Tips for Successfully Renting to Section 8 Tenants
- Know Your Location- HCV payment standards and market rents vary by location. Landlords should review the applicable housing authority’s payment standards, rent-reasonableness requirements, and local market conditions when determining an appropriate rental rate.
- Follow All Federal and State Laws- Property owners must comply with state and federal Fair Housing Laws. Furthermore, properties must meet minimum compliance and upkeep standards. That said, maintaining these standards is just good practice whether owners rent to Section 8 or market tenants.
Landlords should also check local requirements. For example, Philadelphia prohibits housing discrimination based on lawful sources of income, including Housing Choice Vouchers.
- Thorough Tenant Screening- However, landlords remain responsible for screening prospective tenants using consistent, objective, and legally permissible criteria while accounting for applicable source-of-income protections.
- Hire Professionals- Whether an owner chooses to seek approval for subsidized housing or stick with market tenants, there are many rules and regulations to follow. Keeping up with local laws while effectively marketing a property is a time-consuming endeavor for landlords. However, enlisting the help of a qualified professional management company gives owners valuable peace of mind.
Simplify Section 8 Property Management in Pennsylvania
Becoming a Section 8 landlord can come with additional paperwork, inspections, and program requirements. At Bay Property Management Group, we can help handle the day-to-day details of managing your rental, so you can spend less time worrying about paperwork and more time focusing on your investment.
If you have a rental property in Philadelphia or surrounding Pennsylvania counties, including Montgomery, Delaware, Chester, Bucks, and other nearby counties, contact us to see how we can help.
