I’m in the process of purchasing a residence with inherited tenants (month to month without a lease). Rent charged is under fair market and one of the tenants is receiving a partial rent assistance from social services. I’m planning to do some renovations and raised rent to current market. Currently, ss is covering 70% of monthly rent and a tenant is responsible for 30%. If I raised rent by $100 to a fair market rent for 2 bedroom apartment in my area are social services obligated to increas their portion of assistance? Thanks
they will dictate what they are willing to pay according to how many bedrooms square footage and so fourth in the area you are in . You don’t get to charge hud whatever you feel like charging . Each year you do get the option to raise the rent .
Mal, you'll want to call their case worker and check the specifics, but here I need to give a 60 day notice to them and their case worker of any rental increase. From there, they will recalculate what they will pay and assign a new amount to the tenant. If the tenant is unable to pay that amount, you should terminate the lease and get a tenant in there who can pay market rent.
Not your concern, you are running a business and SS is working with the tenant not you.
Raise the rent to market and don't worry about the tenant. As suggested you can get a better tenant if this one leaves. Get someone that is not on assistance and can afford market rent on their own. You do not want to be dependant on SS having to approve your annual rent increase
Don't worry about what the tenants can afford or what SS will pay. Raise rents to market level and operate this like a business.
Just an update. We closed on the house (mid July) and informed SS rent will be going up starting September 1st. The agency increased their rent allowance to cover 70% of monthly rent.