Suppose you are in the rental industry marketing affordable housing options. In that case, you must have heard the report about how no state has an adequate supply of affordable rental housing for low-income renters. This news of the shortage came from the National Low-Income Housing Coalition.
You may be looking for ways to manage your affordable housing units correctly. Perhaps you are looking into other options to maximize your property rental initiatives — particularly military housing and housing allowance.
As a property owner, you can offer housing options for service members and their families. This housing option can help secure a steady rental income since the government offers Baisc Allowance for Housing (BAH).
Here’s a closer look at how military housing differs from affordable housing options.
Military Members Get Non-taxable Housing Allowance
Military personnel enjoy housing allowances that serve as government payments for rent. The amount of financial aid they receive will depend on their rank. Whether or not the member has any dependents will also factor into how much they obtain.
They can access this allowance if they decide not to live in military barracks or dormitories. Many base houses are privatized, allowing you to claim, manage, and rent properties to military members.
As the property owner or manager, your military renters will pay rent to you. The average amount in the local area will determine how much you can charge for rent. Likewise, the military housing allowance will reflect these figures.
Continue reading
More property management guidance from ExactEstate.
See ExactEstate on your own portfolio
Take a focused 20-minute walkthrough built around the properties and programs you manage.
Military members who rely on the government’s housing benefits can rest assured that they will get a basic allowance to pay for their housing. Accordingly, you can expect very few problems when collecting rent.
However, there are reports among individuals under basic military training (BMT) that it sometimes takes too long to receive their BAH. Some people receive their first payment within three weeks of training, while others have to wait five weeks before they get paid.
In isolated cases, individuals do not receive BAH throughout their entire time in BMT. Despite the long wait, they eventually get their due BAH as back pay. Thus, it assures you that you still have money coming in.
No Government Agency Subsidies
Relevant government agencies usually subsidize part of a tenant’s monthly rent when you operate affordable housing rental units. Some property managers and owners address this reality by implementing online payments. Accordingly, they streamline tenant rent collection and match it with the government’s subsidy.
Since the government pays a portion or all of the military member’s rental expenses, you do not have to worry about government agencies collecting a portion of your tenant’s rent. Perhaps the closest situation where the government withholds part of the military tenant’s pay is when they are still in training and do not receive their BAH.
There Is a Core Market You Can Target
One advantage of military housing over affordable housing in the property rental market is that you have a direct audience to which you can market. As a property owner or manager of military housing, you already know that you should advertise your available property to military members looking for new housing.
Meanwhile, offering affordable housing as a property rental option would give you a wider range of potential tenants. Although you have more options, you may have difficulty securing a tenant because of the overwhelming number of potential renters. Thus, narrowing it down to military members looking for housing simplifies your efforts.
Targeting military members for your rental property may involve adjusting your traditional marketing and advertising strategies. For example, if you have a social media page for your property, you would incorporate more military terms that would help display your page on service members’ timelines.
You Must Consider Unique Military Regulations Regarding the Rent
Becoming familiar with federal, state, and local requirements is one of the best practices for managing affordable housing properties. For example, the Fair Housing Act protects potential tenants against discrimination based on racial identity, skin color, religious background, sexual orientation, gender identity/expression, national origin, familial status, and physical disabilities.
Multiple rules and regulations overlap, which explains why some owners and managers invest in software to simplify their affordable housing management initiatives. When military regulations are added to the mix, your management strategy will have to adjust to account for these unique rules.
For instance, the Military Housing Privatization Initiative Tenant Bill of Rights states that tenants have the right to receive advice from military legal assistance in resolving disputes they may have with you as the property manager or owner. As such, you may consider being extra mindful when managing your rental property.
Military Housing Has Unique Affairs
Following the specific regulations involving military rentals, you can expect some unique issues and problems surrounding the military housing world that you need to follow and stay informed about. Privatizing military houses is perhaps the most recognizable topic you will encounter as a rental property owner or manager in this trade.
Just like there are trends in affordable housing that you must not overlook, it would be in your best interest to keep track of the developments in the military housing world in case you need to make necessary adjustments.
This responsibility will overlap with your duties as a landlord, such as staying on top of the real estate and rental business. Consider investing in military housing software to simplify any modifications you expect.
Conclusion: What Is the Difference Between Military Housing and Affordable Housing?
There are a handful of differences between military housing and affordable housing. Government involvement is the primary difference. With affordable housing units, you would expect the government to take subsidies from the tenant, which would reflect in your profits. On the contrary, you will not have to worry about those deductions with military housing because the government pays for military members’ rent.
Another difference is the scope of potential tenants each type of housing grants you as a rental property owner. With affordable housing, your target audience is based on tenants looking for houses while on a budget. Meanwhile, military members are your main target. With a streamlined audience, you have better chances of securing a tenant than hoping to get one who meets your set prices.
Finally, having a unique audience requires that you immerse yourself in the rules, regulations, and updates involving military rent. Your property management efforts will need to reflect the exclusive issues military members face regarding housing.
Track Your Military Housing Responsibilities With ExactEstate
ExactEstate offers a comprehensive property management software solution that you can customize according to your duties involving military housing and housing allowance. With our suite of tools and resources, we are proud to be your complete property rental management solution.
At ExactEstate, we understand the work involved in keeping your housing duties organized and accurate. We are eager to help you find the right military housing software solution to suit your goals. Count on us to adjust our services to meet your needs. Schedule a demo today.
