What is a tenant worth?
I have a section 8 tenant. When she leased the apartment she was a healthy single Mom with 2 kids 10 & 12. It is a 2 bedroom apartment. She has been a tenant for 14 months. In the 14 months i have not had any problems. Her rent was completely paid by her Section 8 Benefit.
Well times change and her health has taken a down turn, her son has moved out to live elsewhere. Now I have been notified by the Section 8 administrator that she no longer qualifies for a 2 bed room apartment. As a result her benefit will be cut about $400/month.
Now the woman is really tough spot. She calls me crying. Where is she going to get $400. And her health issues might be getting worse. (may need to have foot amputated).
She asked me for a reduction in her rent.
Okay here are my thoughts.
1) Crying...I hate that. Sometimes an act. Not relevant either way.
2) health issues. She has had a nurse coming to her apartment daily for a few months. Not sure she will lose her foot. But her health issues are real. But might be exaggerated.
3) We are charging the market rate for the apartment.
4) If moves out, we would rent the apartment to someone else. But it may take a 4 to 6 weeks to rent it. $1000 to $1500 in lost rent.
I am leaning toward a $100/month reduction. But I am not sure of the ramifications. Will it cause problems with other tenants? with section 8? Are there other programs out there she should be looking into?
I would love to hear some opinions.