The pandemic, inflation, and other macro and micro economic factors have fueled the housing crisis in the United States, increasing the need for more affordable rental housing than ever before.
30% of all U.S. households in 2020 had rent or mortgage payments exceeding 30% of their household income.*
Over 580,000 people are experiencing housing insecurity.**
48% of affordable housing property management businesses plan to add new units to their portfolio in 2023.***
Property management businesses are in a position to make an impact in their communities, however managing affordable units is no easy task. Here are some of the reasons why:
Different requirements for each housing type make it time-consuming to ensure regulatory accuracy when submitting files to HUD or state agencies. Plus, if it’s done incorrectly it can be detrimental.
Property management companies with affordable housing units need to be able to operate on a lean budget in order to maintain affordable rents for their communities.
A lack of standardized onboarding processes makes it difficult to train and bring new employees up to speed on the complexities of affordable housing management.
Many businesses use a separate software system to manage their affordable units, which can lead to inefficiencies, along with errors that can increase risk and make it harder to maintain compliance.
Download this free guide for strategies and tools to reach peak operational efficiency.
Follow these strategies to boost efficiency for your affordable housing management business.
When you have one powerful platform to manage all of your affordable and market-rate units, you can:
Rather than manually completing tedious tasks, with automated and standardized workflows you can:
By empowering prospective renters and residents to complete tasks on their own with on-demand tools you can:
HUD housing is a type of affordable housing that is regulated by the US Department of Housing and Urban Development. HUD housing can provide a safe and affordable place to live.
Affordable housing is defined as housing that is deemed affordable to those with a median household income or lower as designated by the government. In the United States, the Department of Housing and Urban Development (HUD) sets fair market rent (FMR) levels for specific geographic areas, and housing that costs below 30% of the FMR is considered affordable.
There are a number of affordable housing options available to those who may not be able to afford traditional housing. These options typically involve government assistance in some form, which helps to make the housing more affordable for those who qualify.
There are many reasons why affordable housing is important. One reason is that it can help to improve the quality of life for people in a community by providing safe and clean places to live. Additionally, affordable housing can help to improve the overall well-being of a community.
The Low-Income Housing Tax Credit (LIHTC) is a federal program that provides tax credits to developers and owners of affordable housing. The credits are used to offset the costs of developing and operating low-income housing. The program is administered by the Internal Revenue Service (IRS).
Housing Choice Vouchers (HCVs) are a type of rental assistance that helps families and individuals with low incomes afford safe and well-maintained housing. Families and individuals who are eligible for HCVs can choose to live in any rental housing that meets program requirements, including single-family homes, townhouses, and apartments.
The Project-Based Rental Assistance Program (PBRA) is a federally-funded program that provides rental assistance to low-income households in participating properties. PBRA assistance is tied to a specific unit in a participating property, and households may move from one unit to another within the property as long as they continue to qualify for assistance.
The Low-Income Housing Tax Credit (LIHTC) program is a federal tax credit that incentivizes the development of affordable housing for low-income households. Property owners who receive the credit can pass on the savings to renters in the form of lower rents. The credit is administered by state and local housing agencies.
There are a few key things to keep in mind when managing affordable rental housing property. First, you need to make sure you are compliant with all government regulations regarding affordable housing. You also need to keep careful records of all your income and expenses. Additionally, you must be prepared to keep a lean operating budget in order to maintain affordable housing for your renters.
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See how Barrington Real Estate Company has been able to streamline processes, get time back, and grow their business sustainably with AppFolio Property Manager.