Prospective Tenant On Workman's Comp!!
Ok, have a prospective tenant in a "lower-class" neighborhood wanting to rent one of my apt's. Seems like an ok guy for the area. However he is on and has been on Workman's Comp for just over a year now. Got hurt at last job?? I have looked at his W/C check stub and seen the bi-weekely payments like he mentioned.
So, since these payments WILL cover the rent and are steady for now, would this be a wise move to allow this person to move in if the credit/background checks come back ok? Seems like this steady income if almost as good as HUD?
Ideas? 
How long will he be recieving it? Verify whatever he tells you. If it will be a while, I'd treat it like any other income and move forward just like you would if it were a job.
If it will be for a shorter period of time, ask yourself these questions:
How hard is it to evict in your state? What will I do when he can't/doesn't pay rent?
You may want to consider a month-2-month lease so that you can terminate it at any time (as regulated by your state laws. My state requires 15 days notice of non-renewal)
Consider requiring a cosigner or larger deposit as well if you're uneasy.
THanks, but how would I verify the W/C details, as far as how long it will last for. He said he had it for about one year so far but his leg is still pretty bad....Sounds long term...
I'm pretty "confident" about it and have Clearly explained to him that if his W/C ever is stopped, he would be FULLY responsible for the rent. He understands and states its not going to stop any time soon with his condition/doctors.
In some areas, source of income is considered a protected class. For example, in Frederick MD a Section 8 application can not be refused solely because the applicant's source of income is from the Section 8 program. This is just a local ordinance in that area's fair housing laws.
To do so, would expose me to discrimination charges. Before making a decision, explore whether you could expose yourself to a discrimation suit if your sole basis for denial is the source of income.
Some lanlords never again rent to someone on disability. I know this sounds bad. And they dont refuse because of their disability. They refuse because of thier ability to collect. Risk is much greater and you cant charge for this increased risk.
You can not garnish disability payments. When picking a tenant I also look at my ability to collect if they dont pay or damage property. You cant always go by what you think will be a good tenant. Most of the time the ones I think will be the best ones will be some of the worst.
Even with Section 8 tenants there is less risk. They stand to lose thier section 8 if they dont pay thier share. Regular tenants you can garnish paychecks or if they lose job garnish paycheck when they do get a job. Still cant always get but there is a good chance. With disability you have no chance at all. It is a shame that some landlords do discrimate against the disabled ( which they cant admit)because of this but the goverment is the one treating them different. Thier income should be like others and able to garnish. If you are in business increased risk means you charge more (which you cant) or you go with lower risk for the same money. You could ask for a relative with a steady job to cosign as a gaurantor but this could be considered discrimination.
Oh, I have a bit of experience with your "lower class" people. Just remember that anything they tell you that supports their best interest is 99.99999999999999999999999 times a lie. It's true, it's a lie. They are very good at it, they have many years of experience. And you could be just another sucker, if you are not very careful. I know you want to believe him, I know you want to help him. You think it will be different this time. I believed them too, and I've lost a lot of money because of it. One of the few lessons I've learned is that a person with a job is more likely to pay than someone without. I know, it's just my experience, but food for thought. Hey, if you really want to help, and the guy is honest, then get a BIG security deposit, and give him no more than a month 2 month, which you should be doing with most of your tenants in a "lower class" area anyway. Good luck! Z
Thanks for all the reply's! Well his credit/eviction history looks pretty good!!
Also, I have a couple of others calling me now to also rent one of the apt's and 2 are on SSI. This is another steady income and one is making $1000 month!! (Will verify stub if poss). Seems pretty good.. Its a 45 yr old lady...Well I think I might choose the best of the bunch but will be VERY carefull regarding any Discrimination
Maybe I will be able to accept all 3 for the 3 apts left....Will meet the others tomorrow