Managing Business Expectations

Posted on: 11 June 2019

You own multiple rental units or perhaps an apartment complex, and you have decided that you will offer these rentals to low-income tenants who qualify by accepting government funding that is designed to help low-income parties find suitable housing. There are multiple types of state and federal programs available for low-income housing, such as HUD programs and public housing voucher programs. As a landlord, there are several advantages of taking part in these programs, but doing so can also bring about a few complications you may not otherwise face. Take a look at some of the reasons it is best to hire a property management company for rentals that are used in affordable housing programs. 

These programs can require properties to be in a certain condition. 

One of the things that come along with affordable housing programs is requirements that the rental units be in a certain condition. For example, a house that is rented by a tenant who gets funding from the state government to pay for part of their rent may have to have locks on all the windows or safety railing on steps. If you are working with a good property management company, they will work to make sure any rental unit that is part of these programs is up to the standards set forth by the funding agency. 

These programs can make accepting rent payments a little different. 

It is not uncommon for affordable housing programs to involve separate payments from the funding agency and the tenant. For instance, you may rent a unit for $1,000 per month, but the tenant is only responsible for paying 30 percent of that rental rate; the agency will send you a payment for the rest. This means that you may have multiple payments coming in each month for the same unit, which can complicate bookkeeping processes. 

These programs can involve special governing rules about how things are handled. 

Every affordable housing agency will have their own sets of rules and guidelines when it comes to things like:

• How tenant non-payment is handled
• What kind of rental deposits you can charge 
• How landlords can interact with the tenants in the program

Getting to know the guidelines and rules in these programs can take some time, which is something a property management company can handle on your behalf. For instance, if you work with multiple affordable housing programs, the residential property management company will get to know each to ensure no rules are broken.