In Nevada, the average tenant spends around $1,400 per month on rent. As a landlord, it's imperative for you to set your rent appropriately to avoid costly vacancies.
However, you'll also need to pay special attention to those who qualify for the state's Section 8 rental assistance program. Otherwise, you risk encountering legal complications.
The good news is that this information isn't quite as complicated as it might seem. Let's take a closer look at what you need to keep in mind.
Location Factors
Where your rental unit is located plays a big role in how the Section 8 process evaluates rent reasonableness. Properties in urban areas often have higher rent payments compared to suburban or rural areas.
Local amenities like schools and shopping plazas also affect the decision. Housing authorities look at these aspects to ensure the rent is fair for the location.
Unit Size and Type
Larger units with more bedrooms tend to have higher rent allowances under Section 8. The type of unit also influences the amount, such as:
- Single-family homes
- Apartment units
- Duplexes
Housing authorities consider whether the unit's size and type match what similar properties in the area are charging. It's all about making sure the rent aligns with the unit's characteristics.
Comparison to Similar Rentals
Rent must be comparable to what is charged for similar units in the same area. Housing authorities will gather data on nearby rentals to make sure tenants aren't overpaying.
This comparison ensures that landlords are setting fair prices based on the local market. Filing a Section 8 application ensures this by evaluating units that offer similar features and quality.
Utility Costs
Utility costs are another important factor in deciding if rent is reasonable. Sometimes, landlords include utilities in the rent. Other times, tenants are responsible for covering them.
Section 8 factors in these costs to get a complete picture of the total housing expense. It helps them determine if the rent, along with utility responsibilities, is fair for the tenant.
It's one of the most straightforward factors, and it's also one of the easiest to accommodate. For instance, let's assume Section 8 housing deems you're charging too much for rent. If your tenants currently pay their own utilities, you could cover them instead to make the rent more reasonable.
Market Conditions
Changes in the local rental market can impact how Section 8 views rent. If rents in the area are rising or falling, housing authorities adjust their evaluations to stay current.
Economic factors like job growth or downturns also play a part. These market shifts are reviewed regularly to make sure rent rates remain reasonable for both tenants and landlords.
Don't Neglect Section 8 Regulations
The info in our guide will help you understand how Section 8 decides if you've set reasonable rates. From here, you'll have no issue avoiding common pitfalls many landlords encounter.
Freedom House Property Management maximizes rental ROI for property owners in Pahrump and West Las Vegas. Offering a full suite of services, (including tenant screening and rent collection), we streamline your operations and keep everything running as smoothly as possible. You'll learn more about how we can help when you get in touch with us today.
