The reason I'm asking this questions is because I'm trying to rent a house for 1650.00/mo, but the prospective renter's Section 8 voucher only goes up to $1350.00. I thought I could ask for a large deposit (with her concent) to make up for a difference in rent.
Is there a way to make it work? Maybe I can ask for a non-refundable deposit?
You may want to check your local laws and what not, but a security deposit is just that, a security deposit. It's not an increase in rent, and is returnable upon the renter finishing the lease with satisfactorily, and no major damages other than normal wear and tear. If you have to have more rent than the voucher is for, find another renter...
Hi,
A friend of mine is in the same exact situation. section 8 voucher is $1375 and he is asking 1650.
He s considering asking the tenent to give him half of the difference in rent ($1800) before they sign the lease. this way the payment is not against the HUD rules as they dont have a lease... any thoughts on this approach???
I would qualify the tenant to make sure they can pay the $200/mo. I normally like to see 3X the rent for monthly income but in this case I may want to see more. Most sec8 tenants I find do not have jobs so I would not rent to anyone without a source of income (unless the voucher covered their rent of course).
The answer is; it depends on your local and state laws. Check with your RE attorney. In NY it's two months rent. I've no idea what it is in IL, sorry.
Good luck.
The rules are pretty clear.
Check the with the local office as to the rules for your area.
What are you concerned about? The tenant not paying or the condition of the property?
John
[addsig]
The reason I'm asking this questions is because I'm trying to rent a house for 1650.00/mo, but the prospective renter's Section 8 voucher only goes up to $1350.00. I thought I could ask for a large deposit (with her concent) to make up for a difference in rent.
Is there a way to make it work? Maybe I can ask for a non-refundable deposit?
Any help appreciated!
You may want to check your local laws and what not, but a security deposit is just that, a security deposit. It's not an increase in rent, and is returnable upon the renter finishing the lease with satisfactorily, and no major damages other than normal wear and tear. If you have to have more rent than the voucher is for, find another renter...
thank you all for help. This community is active and very helpful.
Hi,
A friend of mine is in the same exact situation. section 8 voucher is $1375 and he is asking 1650.
He s considering asking the tenent to give him half of the difference in rent ($1800) before they sign the lease. this way the payment is not against the HUD rules as they dont have a lease... any thoughts on this approach???
I would qualify the tenant to make sure they can pay the $200/mo. I normally like to see 3X the rent for monthly income but in this case I may want to see more. Most sec8 tenants I find do not have jobs so I would not rent to anyone without a source of income (unless the voucher covered their rent of course).