Rental Income

All of our Detroit partners work in conjunction with the US Department of Housing and Urban Development (HUD) to place tenants. The rents are either all, or in the majority, paid by the US Government direct to the owner – not the tenant. The properties are 3 or 4 bedroom detached homes and are located in carefully selected communities where the population is increasing and
existing properties are of a very high standard.

The HUD Program - Government backed rentals

ONE STRIKE — YOU’RE OUT!

The HUD program has a ‘one strike’ policy. Unlike the UK and other parts of Europe where unruly tenants just seem to get re-housed; this does not happen in the USA under HUD and HCV.

Tenants that are evicted from a HUD home lose any future right to join a HUD or HCV program anywhere in the USA, for life – thereby securing your investment property. That also goes for any other occupants in the property above the age of 18, which ensures that Tenants do not abuse the
property and treat it like their own home. This stance has resulted in an extremely low percentage of evictions and higher quality tenants.

HUD conduct annual inspections of all properties within the program before they re-issue guarantee vouchers.

Housing Association Vouchers

Currently, the city of Detroit has a waiting list of more than 9,200 pre-approved families with Housing Choice Vouchers (HCV) who are currently in unsuitable, emergency or temporary accommodation, some simply cannot find a suitable home. Throughout Wayne and Oakland county (which form large arts of metro Detroit) there are 37 HUD approved and funded authorities with over 30,000 people
waiting to rent suitable homes.

How Rent Is Paid

The Government, through HUD pays the Tenant’s percentage of the rent, which is normally 80% to 100%, directly to the owner’s Management company. Additional amounts collected from each Tenant will also go into the client account.

Tenant Demand

Currently the Detroit Housing Associations are looking to provide as many HUD homes as possible. As already mentioned, there are over 30,000 people within the area needing rental accommodation

Further, if we think there is a problem and the property is being mistreated in some way, the Tenant will have 30 days to rectify the issue. At this point, if there is still a failure by the Tenant to comply, the HUD authorities are then notified and brought in. This also includes non payment of any top up rents required. By the nature and set up of the program and the continued inspections from Management Systems, your investment is monitored closely, thus ensuring peace of mind to an out of state or overseas investor.

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