Are there any Landlord Downsides to RAFT in MA

Member since 2024 · 15 posts · 6 votes

Hello, I know this can be a very touchy subject due to fair housing laws but I just bought a property and one of the tenants wants to move to another floor and use RAFT, now I know I cannot deny them housing due to RAFT alone but they are applying because they told me they cannot come up with first last and security, I know RAFT will cover that but I am wondering what downsides are there for instance can RAFT enforce rent control or is it even more difficult to evict people who have applied. Or is the reason Landlords aren't seeking RAFT users more along the mindset of if they need a program to help come up with $ then they are of higher risk not to pay which of course cannot be your sole reason to deny someone housing.

Thanks

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Jerry Bettencourt

Property Manager · Lowell, MA · Member since 2018 · 4 posts · 2 votes

Yea just ask for an approval letter or a letter of intent. The letter will have a code in it that you going to use when doing the landlord portion online. It's best to get some assurance that they are going to get the money before you move them in.

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Matthew CrivelliBusiness Member
Lender · MA · Member since 2021 · 1k+ posts · 1k+ votes
2y
@Mike Maloney

You could explain that moving into a different unit would not only require first last and security but also a credit and background check. The credit report will likely give you insight on whether or not you want to sign a new lease with your inherited tenants. The RAFT money would better utilized in a case of emergency. They clearly are living at or close to, pay check to pay check if they need RAFT in the first place.
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Mike Maloney
OP
Member since 2024 · 15 posts · 6 votes
2y
Yes I agree with all that, my main concern is will RAFT tell me what I can charge for rent and do they make vacating/evicting more difficult than it already is? I spent a long time trying to look this up in many different words of verbiage in my search and found zero info
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Jerry Bettencourt
Property Manager · Lowell, MA · Member since 2018 · 4 posts · 2 votes
2y
The amount of people relying on RAFT for first, last and security is extremely common in lower income areas since they are typically living paycheck to paycheck and it is hard to come up with deposit to move into a new place. RAFT will never enforce what you can charge for rent. As long as the person hasn't used RAFT in the recent past then RAFT will cover up to $7,000 for first, last and security as long as they qualify. Usually if they have a RAFT pre-approval letter that states their approved then you know they at least went through some kind of screening process. I never had a situation where someone was using RAFT to move within the same building. I would assume RAFT will ask questions on why they need to move within the building cover themselves to make sure there is no fraud going on. In terms of evictions, it is common for the person to apply for RAFT during an eviction. If there is a pending RAFT application the case won't move forward until it processes and/or if the person owes more than $7k that you are willing to let go of the remaining rent or have a payment agreement in place. If the tenant defaults on the payment plan agreement than you can go back to court. RAFT is only there to either help low income individuals into new apartments and to help people who are facing housing crisis and have received a 14 day notice or summons and complaint. I had a tenant apply for RAFT then RAFT caught them up and the case had to be closed cause the 14 day notice was cured. Then they fell behind instantly and got denied the 2nd time for RAFT since their $7k was used up and then finally we were able to get them out. Only downside is that you have to follow up constantly with the case workers and check your emails so that the applications don't get timed out.
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Mike Maloney
OP
Member since 2024 · 15 posts · 6 votes
2y
Ok thank you for all the great info, Just bought the building and they were on third floor and the rent was more than half of the market rents because they are family to the old owners, they are moving to first because one of the occupants is elderly. They are telling me they can afford the rent per month but have a hard time coming up with the initial first last and security. I kind of have no choice but to let them move to 1st fl and hope they pay the rent otherwise I'll get nothing at all. They told me they applied and are saying they need a tenancy agreement or lease which doesn't seem accurate.
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Jerry Bettencourt
Property Manager · Lowell, MA · Member since 2018 · 4 posts · 2 votes
2y
Yes a lease agreement is required as well as a few other items, but I would still ask them to give you their letter of intent from the housing provider. They should be able to get you that letter from the housing provider they applied with to get RAFT. If they move in then RAFT will not pay their deposit. If they move in then RAFT will decline the application and make them reapply stating that they are behind in rent and you will have to provide them a 14 day notice. It's a huge pain so you want to make sure you are doing things right so that you don't run into any delays. Also like someone else mentioned, if you just bought the building and have no history with these people it is best to treat them like they are new tenants and get to know their income situation and a background check done.
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Mike Maloney
OP
Member since 2024 · 15 posts · 6 votes
2y
Got it, just for clarification, do not give them a lease agreement until they are fully approved with RAFT?
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Jerry Bettencourt
Property Manager · Lowell, MA · Member since 2018 · 4 posts · 2 votes
2y
Yea just ask for an approval letter or a letter of intent. The letter will have a code in it that you going to use when doing the landlord portion online. It's best to get some assurance that they are going to get the money before you move them in.
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Mike Maloney
OP
Member since 2024 · 15 posts · 6 votes
2y
I was able to find one after spending an hour searching, it's impossible to get a hold of anyone over the phone, thank you for the advice
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