When owning and managing rental apartments in urban areas, it is likely that many of the tenants live paycheck to paycheck and do not have enough savings to cover rent payments in the event of a job loss or sickness. Although it is a legitimate reason for not being able to pay rent, you must still be able to collect rent during these periods so that you continue to pay mortgage/expense bills associated with the property.
Landlords should research organizations and churches in their investment areas that provide emergency rental assistance to tenants in these areas. When they sign a lease with a new tenant, they should provide the contact information to these agencies to their tenants just in case they find themselves in a difficult financial situation where they cannot pay rent on their own. The government dedicates funds to these agencies each year because they want to prevent homelessness and assist tenants through temporary financial setbacks.
Another option would be to require a cosigner on the lease. This can be a friend or family member who is willing to guarantee that they will make the rent payment in the event the tenant is unable to do so. Nearly all leases for student housing tenants require a parent to cosign on the lease for the parent. You should also complete background and financial screens on all potential consignees the same way you would an applicant. Contact us to find out how we can help you.