Renter on Social Insurance. Good or bad?

[therealpotentials]

I have an applicant on social insurance. I was told that the rent will always be paid on time? Is this an ideal tenant or not? Please advise. Thanks.

 

[Sherilynn]

If you mean social assistance, then it depends. Yes, the rent would be paid promptly providing that the proper form is completed authorizing rent payments to be made directly to you from social assistance.



However, there is usually no way to collect on damages that exceed the security deposit. So if the tenant trashes the place, you would have no recourse.



(BTW, we have never had a person on assistance trash one of our rentals.)

 

[therealpotentials]

That's a good thing then. Thanks.

 

[invst4profit]

Speaking only from the perspective of a Ontario landlord operating under Ontario welfare/government guidelines welfare tenants are of the highest risk of all tenants.

Rent payment is not guaranteed as the welfare recipient has the authority to cancel direct payment to the landlord at any time. Usually if they intend to default or move without notice they cancel the direct payment first. They then move without notice and use their welfare rent payment as the deposit on their next apartment.

The worst aspect of welfare or ODSP recipients is that in Ontario the government was deemed them to be legally UNTOUCHABLE. Landlords can not go after recipients in small claims court for rent or damages as the government has made it illegal to garnish government assistance income.



If in your province the regulations are similar I would highly advise not taking the risk of renting to anyone on any form of government assistance. Let them rent from mom and pop landlords and you as a professional landlord stick to low risk gainfully employed applicants.