Pandemic Rental Assistance?

[Carl W.]

My future tenant signed their lease and paid their security deposit then informed me that I would be receiving the rent from their current landlord because they'd previously qualified for pandemic rental assistance last year. Basically, their rent is paid for the next few months but the tenant does not have the money. The program sends payment directly to the landlord. This was all news to me. I did the background check and also called and spoke to the current landlord beforehand and it had not come up during the screening process. I informed the tenant that they'll get the keys to move in when I receive the rent due by the 1st. My question is does anyone have any knowledge of these assistance payments? The tenant will be sending me the info and the landlord will be getting in touch with me to transfer the funds. Anyone heard of this? I'm trying to figure out how the transfer of funds from this third party to me would work.

[Nathan Gesner]

Originally posted by @Carl W.:

My future tenant signed their lease and paid their security deposit then informed me that I would be receiving the rent from their current landlord because they'd previously qualified for pandemic rental assistance last year. Basically, their rent is paid for the next few months but the tenant does not have the money. The program sends payment directly to the landlord. This was all news to me. I did the background check and also called and spoke to the current landlord beforehand and it had not come up during the screening process. I informed the tenant that they'll get the keys to move in when I receive the rent due by the 1st. My question is does anyone have any knowledge of these assistance payments? The tenant will be sending me the info and the landlord will be getting in touch with me to transfer the funds. Anyone heard of this? I'm trying to figure out how the transfer of funds from this third party to me would work.

I recommend you cancel this tenant immediately! When the tenant applies for rent, the payments go to their Landlord. That means the money goes to the Landlord they rented from at the time of application. The tenant and Landlord agree the money is to keep the tenant in that specific rental. 

I'm not aware of anything in the program that allows them to apply at one address, then take the money and spend it on a different address. If you want to even consider it, you need to contact the rental assistance program office and confirm this would be allowed. I doubt they allow it. You're taking the risk that the Tenant is telling the truth about their approval, that the former Landlord would send the money to you, and that it's all legal.