10 Startups That'll Change the Phuket Villa Industry for the Better

Posted by Millsaps on June 8th, 2021

What is a section 8 tenant? Section 8 is an affordable housing program designed to help low income families to be able to have a place to live. The program is administered by the United States Government under the Department of Housing & Urban Development. The government provides a housing supplement for the tenant that can be applied towards finding a place that they can rent out and live in.

There are some markets in which the section 8 program works great. There are other markets in which the landlords report that the program is a complete nightmare. As part of your decision process, find out the thoughts of other landlords on the program in your local area.

The Pros Of Section 8

The biggest and most popular benefit, which is one of the primary reasons why landlords consider the program is the guaranteed income. The voucher allows you to get paid a large portion of the total rent from HUD. The remaining amount of the rent you are to collect from the tenant. The percentage that the government pays vs. what the tenant pays varies based upon the tenant's income.

With a traditional rental agreement there is no guarantee that the landlord will ever receive any rent. Most landlords collect a security deposit consisting of 1-2 months rent as a way to protect themselves in case the tenant stops paying rent. However, depending on where the property is located at, even that much rent upfront isn't enough when you factor in the costs involved with getting a tenant evicted.

Another benefit to the program is the built in accountability due to the nature of the program. Section 8, like many other programs, have a lot of administration and process that need to be completed in order to qualify for the program. The tenants that have qualified for the program had to go through a lot in order to qualify. Generally speaking, they have no desire to run the risk of losing their section 8 benefits by violating the rules of the program and risking you reporting them to HUD.

The Cons Of Section 8

While there are most certainly benefits to the program, there are also disadvantages as well. One disadvantage is that you are renting to individuals and/or families with a very low income level. While every landlord would love to get the section 8 candidate that is an elderly individual who keeps to themselves and doesn't break anything, you can't discriminate against a tenant and refuse to rent because they are a single parent with 4 young children.

Another disadvantage to the section 8 program is there is generally an increased risk for more wear, tear and damage. Most section 8 candidates have kids and kids break things. You can expect to spend more money on maintenance than what you would probably spend with a traditional rental property.

The other primary disadvantage is the process that is required in order to have your rental unit qualified to accept section 8 candidates. The tenant has to fill out a voucher completely correct. Any mistakes will delay the approval process. HUD must then approve the amount of money you are charging.

The section 8 program is a very polarizing program when you question landlords about it. Some landlords swear by it and say it is one of the best programs available to landlords. Others say the program is an absolute nightmare and that it should be avoided at all cost.

Real estate encompasses a wide variety of definition. In its simplest form, real estate is about the land along with improvements to the land, from building to houses as well as fences. In the broad definition of real estate, the term housing tenure is usually used in terms of residential real estate. So what is housing tenure?

In residential real estate, the legal arrangement for the right to occupy a dwelling is most commonly known as the housing tenure. According to Real estate Philippines professionals, there are several types of housing tenure in today's current trends. Some of the most frequent types are owner occupancy and tenancy. While other types include housing cooperative, condominiums, public housing, squatting, and cohousing.

Types of Housing Tenure

The most frequent types of housing tenure are tenancy and owner occupancy. Tenancy typically involves a paid rent whereas owner occupancy is a person who lives in a house that he or she owns, hence the term home ownership. The home of the owner-occupier can range from condominums, apartments, to housing cooperatives.

Condominiums. Ownership of an apartment or house is assigned to an individual, but common areas such as hallways, heating system, elevators, exterior areas, and recreational areas, are controlled by the homeowners' association. Fees are usually charged to the condo owners for maintenance of the common areas.

Apartments. Apartments are a self-contained housing unit that occupies only part of a building. Apartments are usually similar with condominiums, particularly in terms of the building and the units. The differences, however, lies with its ownership. The same building developed as a condominium could actually be built someplace else as an apartment building. The differences is that condominiums are sold to individual owners whereas apartments are rented to individual tenants.

Housing Cooperatives. Ownership of the entire building or complex is held in common by a homeowners' association. Individuals have the right to occupy a particular apartment by mutual agreement but do not hold exclusive ownership to it.

Other forms of Housing Tenure

Other than owner occupancy and tenancy, housing tenure may also involve:

Public housing. Government-owned housing, whether provided for free or leased at a subsidised rate.

Squatting. Occupation by non-owner without permission by the owner, if any.

Timeshare. A modified form of cooperative, condominium, or leased house or apartment, with short-term residency right agreements tailored for vacations.

Cohousing. A variant of Phuket Villa a condominium or cooperative with a high degree of interaction with neighbors in shared areas.