Applicants on Social Security

[pixelrogue1]

State: Pennsylvania

Applicants are now trending older, many retired with only Social Security as income. Social Security income is not accessible in the event of a judgment for a lease break.

What recommendations do you have as a means to screen and accept applicants with a level of comfort that a legal judgement can be cured in the event of a lease break?

Thank you!

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Update: Yes, there is always a deposit collected...for any tenant. My rant on a deposit is that the deposit is never enough if there is damage. Deposit can only be one-month-rent legally. 1 month's rent does not cover the cost of carpet replacement, and one month's deposit will not touch the the cost of court/eviction etc. So in the event of a broken lease, where the 1 month's rent isn't even close to amount awarded in court - how does one protect against the risk. Is the landlord allowed to deny tenants based on income only being social security/government payments, for example?

 

[STEPHAN]

Always have a deposit, no matter what form of income the tenant has. Saves a lot of headache.

 

[Gail in Georgia]

There is no guarantee that any tenant won't break a lease but, as STEPHAN stated, a security deposit to help cover owed rent is useful.

Careful screening to rule out those who have a history of previous evictions or inadequate income to meet rental requirements should be done prior to signing any lease. Often eviction histories are available online. Many landlords require applicants income to be at least three times that of rent; this in itself may rule out a couple whose only income is from social security.

In addition, keep in mind that the majority of landlords who sue tenants who break leases or do damage above that which the security deposit will cover and win their judgment rarely if ever see a dime of this money. The court may grant their judgment but it is still up to the landlord to attempt to collect these funds.

Gail

 

[FarmerJ]

AND if your state has not banned or forbid it last months rent being pre paid so you collect first last and dep. SO even if say after x number of months tenant cant pay but will get out with out a hassle to you then the last months rent is pre paid. Older tenants on SS are different than younger disabled , some older ones may have something go wrong and they have to go to nursing home or say can no longer navigate stairs or they just might die , the oldest of the older ones may be ambulatory but its not as likely they would have to break a lease but if they did the reasons are going to be different than for younger but on SS. If you get a older tenant who is on SS but also in a housing assistance program, that tenant might be the one who stays on for many years. Do use a screening service.

 

[pixelrogue1]

Deposit added to the original thread...

In short, the deposit doesn't come close the costs associated w/a broken lease. It eventually goes to court, you get a judgement... and if they are SS or any government funding you (the landlord) are NOT allowed to touch it to cure a judgement.

So can you say 'no' to applications who's only income is in the form of government payment, for example?

 

[FarmerJ]

If you have a set policy as to income level and your rentals then you must enforce it for ALL no matter what their income source is. SO say you had a one bedroom apartment that you normally rented for 500.00 a month but tenant had to pay own heat, hot water and cooking electric and laundry cost up here where its COLD in winter and utilities and rent could easily come to 700 a month and your policy for income limits was that you did not rent to anyone who would be paying more than 30% of their income for those utilities and that rent and the applicant only had a take home income of 1,700.00 a month then you would have to decline to rent to them because they did not have enough income to meet your policy and that would apply to ALL applicants.