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Renting to tenants on welfare and it works (?)

November 26th, 2011 · 2,415 Comments · ontario landlords, ontario landlords association, Residential Tenancy Act (Ontario), welfare

 

So what about renting to tenants on welfare?

It’s a valid and often-asked question.  After all, tenants on welfare are guaranteed their money from the government as long as they qualify.  There’s no risk of lay-offs or firings in this era of a potential double-dip recession.  So why not!?

There’s an excellent discussion about this at the Ontario Landlords Association discussion forum (www.Ontariolandlord.ca)

To read the thread click here.

There are certainly many excellent tenants who happen to be on social assistance.  Life if tough and we all have our ups and downs.

So why not focus on tenants on welfare who are making an guaranteed income to pay the rent?

Let’s look into this in more detail.  Here we go.

1. Tenants on welfare often tell the landlord the rent will paid directly to the landlord.

Sounds great doesn’t it!  The problem is the reality of the situation.  The welfare tenant can make a quick and simple phone call and that rent money goes to the and not to you!

2. Landlords often think if there is owed rent or damages they can get the government to compensate them.

This also sounds great!  You have the government responsible.  It’s also wrong.

Any rent owed or damages are the responsibility of the tenant.  And you know what?  Even if you sue and win against a tenant on welfare you cannot ‘garnish’ them.

What does this mean?

It means you will never collect from them.  If someone works at a job, you can garnish them after winning your law suit or LTB hearing.

Still think renting to people on welfare is a great business decision?  Up to you.  Know the real facts.

 

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