Section 8 resident -- Can not come up with security deposit?

Question

Paperwork has been approved and we have passed inspection.  She has 1 week to move in and informed us she wont have enough cash to cover the security deposit due to her lay-off from the Corona epidemic.

If she does not move in by the end of the week we loose the subsidy and the 1 year of guaranteed rent ( and months we spent getting to this point)  Any ideas?  I was considering letting her move in without it or perhaps increasing her portion of the monthly rent.  Thoughts?

Patti Robertson · Answer

@Kenneth Garrett - That’s not true in my market at all.  I have 85 SEC 8 leases in our management company and every single one of them has a full deposit paid.  We keep the charity list handy in our office to help those who don’t have it saved.

Jacob Sampson · Answer

I haven't read through all the comments so maybe it was already mentioned, but in the future don't move forward or take a property off the market until you have a deposit.

Kenneth Garrett · Answer

@Patti Robertson

I hadn’t thought of referring them to charities to acquire the security deposit.  That’s a good idea.  I know Catholic Charities helps out some people.  I’ll need to look at other sources.

Marc Winter · Answer

@Josh Skyer, careful about raising her co-pay or rent upfront--that might skew out the Sec 8 formula.  If you have time, contact some local organizations like Catholic Social Services, Goodwill, etc.  In our area, they often will help with security deposits.

Kenneth Garrett · Answer

@Josh Skyer

The majority of section 8 tenants do not have the security deposit.  They might have a small portion; $300-$400.  You could call it a move-in fee instead of a security deposit.  This way you keep it. Be careful not to violate the section 8 rules.

Ryan B. · Answer

@Josh Skyer You can’t unilaterally raise the tenants portion of the rent.  Perhaps you meant that you were going to let her pay the deposit in installments.  It may be semantics, but the section 8 program ties your hands for certain things.

Nathan Gesner · Answer

This is why I stopped accepting new Section 8 tenants. The steady paycheck is enticing but the additional work involved isn't worth it to me and the majority of Section 8 renters (in my experience) end up bad renters that makes the experience even worse.

Steven Taylor · Answer

@Josh Skyer

I would take the chance and get the place rented

Take the money!

Section 8 resident -- Can not come up with security deposit?

Most Popular Reply