Renting to a tenant with insurance claim

[Peggy Lindsay]

Hello BP Community,

I am new to being a landlord and would like your feedback on a prospective tenant.

This person lost their home and wife in a tragic single home house fire in June 2020. His insurance company is placing him in housing for 15 months and will cover all his housing costs. This person is living off SS and does not have 3x income to cover the rent. He had a clean credit and background check, although he didn't actually have much credit, but his score was 700+. The insurance company will do a 6 month lease and then month to month up to 15 months total. The tenant said if his new home was not ready he would move out.  Haha, that's the clincher, right? I will say he is a very nice person, had an engineering job for 30 years and presented clean and responsible.

Question - has anyone ever rented to a person in crisis like this where the insurance company pays the housing expenses? Is it reasonable to plan  at about 10 months time if his home is not ready that we give 30 days notice with the worst case scenario that we will have to evict him (but rent will be covered for 15 months regardless if he is there) 

Yes, complicated. The insurance company is legit, Aegis Insurance. All monies paid up front -1st, last, security deposit and $400/mo for utilities.

What are the pitfalls? 

Thank you in advance,

Peggy