Section 8 Request for Assistance

[Brian Kennedy]

Hello BP members. I am new to BP and have been a landlord of a SFR since 2012. I rent to a Section 8 tenant that likes to keep the heat at 80 degrees. Which is fine since the tenant pays the gas bill. I warned them that they should expect very high gas bills if the heat was kept that high. Well, last week I received a request to assist with paying a portion of the past due gas bill from the security deposit. I'm a reasonable landlord that is willing to work with my tenants, so I drafted a letter informing them that I will assist in the form of a loan that carries a monthly fee if not paid back by a mutually agreed date. So my question is, should I require the tenant to sign up for the gas companies monthly payment plan as a stipulation of the loan?

[Randy E.]

I wouldn't give them any of the security deposit.  

1) The gas company (especially in cold winter states) will work with poor customers to set up payment plans to keep the heat on.

2) Low income customers can request a "one-time" grant from the city and/or various non-profits to assist with paying heat bills.

3) It's not winter any more.  Even if the gas company discontinued service, the tenant would have five months to pay the bill before the next cold season.

4) The security deposit is for your protection, not the tenant's.  If you return a substantial portion of the SD and the tenant then skips paying the rent for a month and/or damages your property, you have no way to get money from the tenant.  From what I've heard, NJ is a notoriously difficult state to do a quick eviction.  If true, you don't want to have given the tenant back her SD of your own volition, then discover you wish you had kept it.

Bottom line: Don't do it.