What are the Advantages of Renting to a Voucher Holder?
Guaranteed Timely Payments
CHA's portion of your tenant's rent (usually the majority of the total monthly rent) is deposited directly into your checking or savings account with a receipt for the payment sent by mail for your records.
Competitive Rents
Cambridge Payment Standards typically increase each year to keep CHA rents competitive with market rents.
Vacancy Payments
The CHA offers vacancy payments worth up to 80% of one month's rent if you rent to another voucher holder after an existing Section 8 tenant moves out. The vacancy payment lets you collect revenue on a vacant apartment for one month while you prepare the unit for the next Section 8 tenant. The vacancy payment is one of the many incentives the CHA offers owners who regularly rent to families with vouchers. You cannot collect a vacancy payment if you don't rent to another Section 8 tenant. C
Short Vacancies & Lower Advertising Costs
There is a long list of eligible families looking for affordable apartments in Cambridge. As a result Section 8 Owners are less susceptible to increases in vacancy rates as non Section 8 owners. Owners can list vacancies on CHA's free listing service. Call 617-497-4040 to learn more.
Decreased Applicant Screening Time
Section 8 voucher holders often sign a release that allows prospective property owners access to their CHA file. This file can contain information that you will find helpful when considering a new tenant.
The Truth About Renting Your Unit to a Voucher Holder
Misconceptions about the Section 8 Program can make it difficult for Section 8 Voucher Holders to find safe and sanitary housing in our City. Some prospective Section 8 owners are concerned that participation in the CHA's Leased Housing Programs is bad business. Here are the answers to a few frequently asked questions:
Does the CHA screen my tenants for me?
The CHA only screens tenants to make sure they are eligible for a voucher. It is up to you to screen your prospective tenants for compatibility with your unit. The CHA will screen prospective voucher holders to make sure they meet the following criteria:
INS Status: the CHA determines whether or not a non-citizen is eligible for a voucher based on Immigration Status
Income: the CHA will confirm that a family doesn't make too much money to qualify for a voucher
Criminal Background Check: the CHA makes sure that no adult convicted of a violent crime or drug distribution in the past five years is issued a voucher without giving thorough and well documented evidence that they are rehabilitated
Are voucher holders more likely to be bad tenants?
A low-income family with a voucher is just as likely to be a good tenant as a family of better means. The key to finding good tenants is for you to screen your tenants. Call previous owners to see if the family was tidy and if they paid their rent on time. Run a credit check on the adults in the family to make sure they have a good history of paying their bills on time. With thorough screening, owners will be more likely to find good tenants. It is important for Section 8 owners to take the time to screen prospective tenants themselves so that they find good matches for their units.
Once I get into the Program, is it hard to get out?
Section 8 Leases are almost identical to standard Rental Housing Association (RHA) leases in terms of contract renewals. A sample Section 8 lease is available here. As in an RHA lease, owners or tenants can opt out of a contract at the end of the year with thirty days prior written notice.
Why do inspectors have to look at my apartment?
Federal law requires that units are inspected before subsidies can be paid to owners on behalf of voucher holders. The inspections are quick, scheduled at your convenience, and free. Inspectors simply need to make sure that a unit is safe and sanitary and that the rent is reasonable before a family can move in. CHA and City of Cambridge inspectors make sure that the unit meets the Department of Housing and Urban Development's (HUD) Housing Quality Standards and that the requested rent for the unit is reasonable.
Federal law also requires CHA to periodically reinspect occupied units to make sure that they remain in compliance with state sanitary codes and HUD's Housing Quality Standards. Reinspections also provide CHA an opportunity to make sure that the rent being charged is still reasonable given a unit's location, condition, amenities and the local rental market.
In 2007, CHA adopted new inspection policies designed to reduce the number of reinspections CHA conducts without affecting the quality of the units rented by voucher holders. The new inspection policies use a sampling method for large property owners, and biennial inspections for owners with fewer units in the program. Here are the inspection protocols:
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Housing Choice Voucher Program Inspection Protocols
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Unit Type
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Initial Inspection
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Frequency
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On Request
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Project Based
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CHA or *City
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Annually 10% randomly selected
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CHA
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Additional 20% selected if any unit fails
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If additional failures:
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Reduction of rent adjustment factor (1yr) for all units in same property
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No HAP paid for any unit in failed status for 30 days or more
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Tenant-based/ GROUP I owners with 10 or more CHA Assisted units leased and/or more than 5 CHA Assisted units in a single property
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CHA or *City
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Annually 10% randomly selected; Additional 20% selected if any unit fails; If additional failures - No rent increase for all units in same property as failed unit (1yr), Switch to 2 yr probationary status, all units inspected as noted for GROUP II; No HAP paid for any unit in failed status for 30 days or more
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CHA
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Tenant-based/GROUP II, All remaining units
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CHA or *City
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Biennial, at least once in a 24 month period; No HAP paid for any unit in failed status for 30 days or more
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CHA
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*City inspectional services can be used when:
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1. The Cambridge apt. has a rent that is regulated by an outside agency.
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2. The owner of the Cambridge apt. has requested a rent that is 10% or more below the HUD issued FMR.
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3. The Cambridge apt. is in a property that already has more than 5 CHA assisted units and is not on probationary status.
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4. In the opinion of the Director of Leasing and Occupancy or his/her designee, a single inspection is logistically necessary to prevent the Cambridge apt. from falling through.
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Are Section 8 rents competitive?
Each fall HUD determines Section 8 Fair Market Rent levels (FMRs) for Cambridge. Each Public Housing Authority however, has the ability to contract rents that exceed HUD's FMRs in cases where the unit's condition and location warrant a higher rent. The CHA frequently agrees to rents higher than HUD's FMRs when owners show that their units are worth more by providing data on comparable non-subsidized units in the same building and neighborhood. The CHA maintains its own list of non-subsidized units in each neighborhood to confirm that rents above HUD's FMRs are reasonable. Click here for the current Cambridge Payment Standards for units including all utilities.
Am I allowed to collect first and last month's rent from voucher holders?
You can request that the tenant pay the first and last month's rent in advance. Although the CHA cannot help the tenant pay first and last, you can rest assured that the CHA's portion of the rent will be paid as long as the tenant is in the apartment with a voucher. Knowing this, many owners will be happy collecting just the tenant's share of the first and last month's rent instead of the entire amount. You should feel free to contact the Community Outreach Coordinator at the CHA for an explanation of how this works.
Can I collect a security deposit?
As in non-subsidized units it is up to you and the tenant to agree on the amount of the security deposit—as long as the security deposit does not exceed one month's rent. Of course you must comply with all state, city and federal regulations regarding the collection of security deposits. Massachusetts Law about collecting security deposits is available here.
How do I request rent increases?
You can request increases each year providing the increases are sent in writing to the tenants and the CHA at least sixty days prior to the contract anniversary. The CHA's Inspectors review the increase request and conduct a rent reasonability comparison in order to determine whether or not the requested increase is reasonable when compared to other, non-section 8 units of similar quality in the same neighborhood. If a request is determined to be reasonable, it is agreed to and the change is made automatically, effective on the first day of the new contract year. If the request amount is determined to be too high, you and the CHA can negotiate an acceptable increase, or if your request amount is non-negotiable and the CHA doesn't agree that the increase is reasonable, you can simply give the tenant notice to quit and put your unit back onto the open market. The CHA does not typically agree to rents that exceed the payment standard, adjusted for utilities.
Do I have to use the Section 8 Lease?
You are welcome to use your own lease, but the CHA's Legal Department must approve the lease before you and your tenant can sign it. RHA leases are acceptable and do not need to be reviewed by the CHA. All leases must include HUD's Lease Addendum.