Tenant Quality Deterioration

[Ken Chud]

Hey folks. I specialize in renting to Section 8 (BRHP) in nicer areas of Baltimore County and noticing significantly deteriorated tenant quality. Especially since Covid. There is barely a voucher holder applicant with a clean background. All of them have Failure to Pays and other drama. Are other fellow landlords and property managers seeing the same?

[Ken Chud]

Quote from @Jasper K Juhl:

@Ken Chud thanks for your thoughtful reply. I understand your concern-policies like the Tenant Opportunity to Purchase Act (TOPA) don’t directly tackle the immediate issue of tenant quality. The Act, signed into law in October 2023, is more about empowering renters by giving them a chance to buy their rental properties when the landlord decides to sell. It’s not intended to address tenant screening or defaulting issues, and I can see why it might not seem relevant to your concerns about tenant behavior and payment habits

To answer your question,I fully own a couple of companies and hold partial ownership in others with real estate portfolios totaling over $100 million in market value, but I try to keep an open mind and learn from both sides-whether it's through advocating for better tenant practices or working with property managers. You're spot on about security deposits being a practical tool to mitigate risk, especially with applicants who have checkered rental histories. Doubling up on deposits or requiring larger deposits might weed out some of the riskier tenants upfront, though it's not always a foolproof solution, especially in markets where affordable housing is tight.

Regarding your point about double security deposits, you're absolutely right-this can be an effective strategy. However, the Renters' Rights and Stabilization Act of 2024 now caps security deposits in Maryland at one month's rent in most cases, limiting landlords' ability to require higher deposits for higher-risk tenants​. This change makes it harder to use large deposits as a protective measure, which might explain part of the difficulty landlords are facing in managing tenant risk.

As for the post-COVID surge in applicants with problematic rental histories, many landlords across Baltimore have noted similar patterns. The pandemic disrupted rental payments and financial stability for many, even among those who are now back on housing assistance programs. I’ve seen landlords who handle this by requiring tenants to show commitment through actions like attending financial literacy programs before lease renewal, which could help mitigate some of the risks.

PS: If you haven’t already, consider working with local organizations that offer financial literacy workshops for tenants as part of lease conditions. It’s gaining traction in some areas as a proactive approach to stabilize tenant behavior and reduce defaults.

Very interesting information. I think it is absolutely crazy for landlords to require tenants to attend literacy programs...this is not enforceable and will not yield to any specific results. Requiring voucher holders to work to pitch in toward rent in order to maintain assistance would have been much more effective. It is not a good time to be a landlord in Maryland. To those thinking of doing business in this state, beware. But I will not get political here.