renting to someone who is retired

[Mike O.]

What are your experiences renting to people who are retired? 

I have a potential tenant interested in renting a townhouse from me ($1800/month) and will be living alone. Curious on the best way to verify income, she mentioned she would pay the whole year up front and I have read in the past that could be a bad thing because she could possible stop paying rent after a year and I will have a hard time getting her out. This whole situation is new to me so I appreciate any advice.  Thanks 

[Account Closed]

I am betting that this person has a large disability payment they recently received as back pay from Social Security, and that they aren't technically "retired," but rather disabled and don't want to say so.  And that in order to continue to receive their SSI, they need to "pay down" the amount of money they have in the bank, hence wanting to pay a year's rent up-front.  

Obviously, just a guess.  But, once you get verification of source of income and credit checks and landlord and background checks, etc., you'll have a better picture.

If this tenant is actually disabled, and everything else looks good, and this is really a matter of needing to pay down their backpay, so they don't have too many assets to continue to qualify for their SSI, etc., then you can just write up an agreement that you are accepting their payment up front, but that if they get evicted, you'll reimburse whatever would be owed to them.

You just need to check it all out and see if they qualify according to your, hopefully, tough criteria, otherwise.  If their regular monthly income wouldn't qualify, though, I wouldn't take them.  Because they won't have money to continue to rent from you once the lease is up, but also because they won't have money to take care of other things that may come up.  And when a tenant moves into a rental they really can't afford, unfortunately, you end up with a tenant who moves other people in, starts businesses in the unit, or who knows what else.

You could take her knowing you may need to kick her out, and deduct what she'd owe you out of what she'd paid up front, but who wants to deal with that?  

If she just needs to pay down her backpay, though, and otherwise would have enough income going forward after the upfront payment is paid down, and she has great references, then go for it.  Usually, the worst thing retired tenants do is have time to call you to fix things lol.  Or maybe have grandkids move in.  But, they're rarely party animals.