We have a section 8 prospect who only qualifies for our company with last months rent paid up front in addition to their full month security deposit. Im just curious if anyone knows if section 8 allows this (getting an answer from them is not so easy.)
Also if I remember correctly in Missouri you can only have a maxims of 1 months rent on file as deposit meaning the last months rent could not be considered a deposit instead of their last month of rent. I feel this is probably not allowed by section 8 as they are the ones paying rent and do not want any rent paid outside of what they allow.
@Phillip Syrios I cant say for your authority but here that would not fly.
Section 8 will allow what's ever allowed by your area (state or city). For instance, in My area, you can only charge up to 2x rent in last month/deposit holdings, so it's legal to charge a full last months rent, but you have to take a smaller deposit and then also presumably refund a bunch of that last months rent at the end. Most landlords here just charge a larger deposit and forget about last months rent.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!