1st time with Section 8 need insight

[Avery Moore]

Good morning BP community,
This is my first-time having using the section 8 program in having a tenant. It wasn't easy going through applicants being that its Atlanta & it's a lot of people applying from other states as well as people that don't reply or want something for nothing. I selected the applicant that I thought was best fit. With that being said here's the situation that I am needing some insight on:

1. The company LeumasGroup, paid for the security deposit which is 1st & last month rent.
2. The move in date was expected to be May 1st being that the property passed the inspection April 29th
3. The tenant was mailed the check & received it on May 6, we signed the lease and paperwork May 7th
4. The tenant stated they're going out of town for a graduation, didn't get the keys that day (plus I wanted to make sure the check cleared)
5. The tenant contacts me that Sunday and asked about prorating being that it was the middle of the month or starting the lease in June (???)
6. Contacted the Housing Authority to confirm if I were to receive or deny money being that the security deposit was covered.
7. agreed upon moving forward, May 14 an emergency happens & couldn't meet for the key

The housing authority are very hard to contact for answers and the case worker for this case is on vacation this week. Am I overthinking about the procrastination of moving in/stalling? Should I return the money and look for another tenant? 

[Laci White]

A few things here: 

1. The security deposit is not rent. This needs to be held separate and apart from any rent proceeds (typically in an escrow or trust account) until the tenant moves out. No part of the security deposit should be refunded until the tenant moves out. Did the Lemus pay just a security deposit upfront or did they pay some portion of rent in addition to the security deposit?

2. The housing authority is paying rent on behalf of this tenant. Did the housing authority send payment for the full month of rent or did they prorate it? If the housing authority sent the full month's rent, I would let the tenant know that the housing authority sent full payment and deemed no proration was necessary.

3. If this were not a section 8 tenant, you would need to prorate the rent based on the lease start date documented in the lease agreement regardless of possession (unless the lease states otherwise).

4. Since the lease is fully executed, if you do want to return their money and get another tenant, you would need to return the money to Lemus, not to the tenant, as it was not them who paid upfront funds. Also, I would recommend getting from the tenant in writing that they agree to terminate the lease and have you refund upfront funds to Lemus. You'll want to have them sign this document if you decide to terminate. However, it sounds like this can be resolved pretty easily though and I would try to keep the tenant in place.

Hope this helps!