Potential Rent Increase and Veteran (VA) Benefits

[Matthew Holtry]

I am currently under contract to purchase a tenant-occupied rental property. The current tenant has been in the property for more than 10 years, has never had a single late payment, and keeps the property in exceptional condition. 

He is currently paying $700/month for rent and rental comps in the area indicate rent should easily be $850/month. 

This gentleman is also a disabled veteran who relies on VA benefits and is very concerned about future rent increases due to his fixed monthly income. While I fully recognize this is a business, given way he treats the property and always pays on time, I will not consider evicting the tenant, but I do want to take steps to normalizing the rent. (He has not had an increase in more than 5 years.)

Another BP enthusiast said it may be possible for the VA benefits to increase proportionate to future rent increases. For example, if I increased the rent $50/month, he could ask the VA to increase benefits by $50/month to offset the costs. Is anyone familiar with details about these programs and what options might be available to explore?

Thank you all for your help!