Tough Choice - Help Me Make This Decision
Hi,
So I have found a tenant who is on the section 8 Program. We completed the paperwork (the initial application) last Friday and she submitted that to the HUD authority. They will review it when they get to it and "negotiate" on rent with me. I am not sure how they do this but that is what they are telling me. The process (including inspection) will take about 3 to 4 weeks. The situation is:
1) my property is vacant
2) tenants lease on her current place is expiring end of June.
3) I spoke with the housing authority and they said they will be fine her moving in before the application process is complete but she will be responsible for the whole rent.
I am thinking I ask her to pay me 1 month security and 2 month rent in advance and we sign a 2 month lease. This way if in the next 3 to 4 weeks HUD approves the property and we agree on the negotiated rent then we will be fine. otherwise she will have a month to find a new place and move out.
The property is a 6 bedroom house and its not easy to find tenants for this size property. Also the house is not in the perfect condition so I want to work with this tenant.
What do you suggest. what would you do?
Monthly rent is $1650 so keeping it vacant is a big hit.
Thanks for your help
Please share your thoughts... I am looking for help as i only have a couple fo days to make this decision....
Thanks
Man, those Housing Authority people put you in a tuff spot, don't they? I've got Section 8 people in two houses, and they pulled the same garbage on me on both of them. Wait until the tenant doesn't have a place to live, then screwed around with me trying to get lower rent. My sneaky little suspicious mind thinks it's deliberate, because nobody likes to see someone with no place to live, so the landlords are more likely to be willing to come down on the rent, just to give the people looking for a place to live a break.
My suggestion... See if the tenant can get a month's extension where they're living. I wouldn't let them move in without approval from the Housing Authority. What if the house fails the inspection? You said it's got problems, well, them inspectors are vicious nowadays about making you fix itty bitty things. Heck, I had to CLEAN the windows before they could move in... But, anyways, if they move in for 2 months, as you suggest you write a lease for, in moving in and out, they're going to do damage that'd have to be repaired, granted, you would have some deposit money to fix it, but still, it takes time, time you could be renting to someone else.
And, you're wanting this person who is on Section 8 housing assistance to come up with almost $4,000.00? ((1600*2)+however much the deposit is) hhmmmm I don't often have that much just lying about, let alone someone who's responsible for several people, and probably has a lower paying job. I guess my point is, that's a little high for someone on that type of assistance to come up with, in my opinion. Depending on my house, I usually as for enough to paint it, maybe clean it, say, $2,000.00 for deposit.