Renter Profile - Assisted housing program - good or red flags?

Question

We have 2 potential renters for our property. Has anyone had a renter on an assisted housing program? What are your thoughts on these types of tenants? Good or if there any red flags? Appreciate your thoughts?

Pat Lulewicz · Answer

We rent to plenty of S8 applicants; I've always believed the standard of care they exude is as high if not higher than "market" applicants because they'll get kicked out of the program if they don't. Part or all of the rent is covered by the US gov't (take that as you will). The front end can sometimes be tedious to get approved by the local housing authority, but rent payments are always timely. Screen them as you normally would - does their income substantiate their portion of the rent +/- a little for changes in what the housing authority will pay out? What do their previous landlords have to say about them?

Lorenzo Decaria · Answer

I have a mixed bag of renters: some use no assistance, some are section 8 and some are non section 8 but have used some housing program assistance (such as deposit + 1st month of rent). I regret to say that if renters use assistance, it’s because they really need it. Most of my tenants that use assistance are the ones who are always behind or in a struggle. I only have one tenant who never missed a payment and was never late; coincidently, he is the only one who uses no assistance.

Jake Baker · Answer

@Maria Jeanette

Renting to tenants in assisted housing programs, like Section 8, can have both advantages and challenges.

- Consistent Payments: The rent portion covered by the housing program is guaranteed and paid on time, reducing the risk of late payments.

- Large Tenant Pool: Housing programs often have waiting lists, so demand is high. You’ll likely find tenants quickly.

- Tenant Accountability: Many programs have strict guidelines for tenants, and breaking those rules (e.g., property damage) could jeopardize their assistance, encouraging them to be responsible.

- Inspections: Some programs require annual property inspections to ensure compliance with their standards, which can occasionally be demanding.

- Damage Risk: As with any tenant, there’s potential for property damage. Ensuring a solid lease agreement and security deposit will help mitigate this. I have not seen a significant difference in this area between section 8 and non-section 8 tenants, personally.

Maria Jeanette · Answer

Thank you! Great insight and advise.

Renter Profile - Assisted housing program - good or red flags?

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