Top 5 Reasons Why Landlords Prefer Rental Assistance Programs
Often, when I hear landlords talk about rental assistance programs such as Section 8, HASA, TBRA, Cityfeps and HudVash, it is based on their personal experience or hearsay, which went really well or it was the tenant from hell.
In most areas landlords with buildings that have 5 or more rental units are regulated to accept rental assistance vouchers. But its a slippery slope in 1 – 4 unit private residential homes where landlords rental decisions are left largely alone by the government. It is this group of landlords we want to focus on, because most of them have found that the advantages of accepting tenants with a voucher large outweigh the disadvantages.
If you are thinking about accepting tenants with Section 8, Cityfeps, HASA, Hud-Vash or TBRA for your apartment lets look at the advantages of accepting these programs.
#1. LARGER POOL OF RENTERS – In areas with high vacancies there isn’t a large pool of renters to fill all the vacancies. If you are struggling to find tenants the consideration of programs will create an expanded option for rental prospects.
#2. CONSISTENT PAYMENTS – Most landlords prefer tenants with rental assistance because all or most of the rent is guaranteed. Rent payments are distributed each month uninterrupted. In some cases it can be deposited directly to the landlord’s bank account. You never have to worry about non-payments due to job loss. In cases where the tenant suffers a job loss, they can easily get re-budgeted for additional financial assistance. Some landlords have experienced temporary stop payment of checks due to a landlord’s failure to maintain compliance with a program standards. But this is easily resolvable. Tip: Inform the tenants you would like to visit the apartment once a month to check out the condition. They must also agree to this in writing in the lease. This will help a landlord to identify any repairs issues early.
#3. LONGER TENANCY – Tenants who use rental assistance traditionally stay in their apartments much longer than renters without the assistance. A tenant moving out can be a landlord’s worst enemy. There is a loss of rent as well as the cost to renovate the apartment for the next tenant.
#4. VACANCY REDUCTION REPAIR PROGRAM – Some landlords have vacant units that need repairs but they are not able to fund the repairs. These landlords took advantage of the Vacancy Reduction Repair Program and were able to fix an apartment which otherwise would not be rentable. The apartment is repaired up to code to pass inspection. The goal of this program is to help landlords fix up apartments for rent to tenants with rental assistance which would otherwise not be rentable. To qualify:
- The premises must be located in in the 5 boroughs of New York City or Mount Vernon.
- Must accept a tenant with a rental assistance program
- Must agree to repay the loan within 6 months of tenants moving-in.
- Contact us for more information @ 914-299-0420
#5. $6,000 BONUS – Lease your vacant apartments to qualified New Yorkers receiving rental assistance across the 5 boroughs of New York City and receive up to a $6,000 bonus. Many landlords with private residential units have admitted that without this incentive they would not have seriously considered a tenant with rental assistance.
Choosing to rent your apartment is a big decision that brings with it a variety of challenges. But if you are on the fence about considering a tenant with rental assistance, these incentives may encourage you to expand your options. If you are thinking of renting to tenant with rental assistance, contact us for more information at 914-299-0420.