Alpha Project: Trustworthy?

Question

I'm an apartment manager in San Diego and there's this company called Alpha Project. They take people who are currently homeless and act as an agent to get them housed. The client must work and give Alpha Project half of their income. In return, Alpha Project pays all their rent. They offer a first time signing bonus of $500 to the rental property as an incentive to take on their client as a new tenant. They also say that any problems that arise with the tenant including evictions, they'll handle ( like a middle man). The rent money comes from the San Diego Housing Commission and is said to be paid on time every month guaranteed.

Has anyone worked with Alpha Project and can give feedback from a landlord's perspective?

I have an applicant from them with a 504 credit score and an " unlawful detainer" on record w/ a judgement amount of around $5,000. So, typically, he'd be denied. I want to give them a shot, but the higher-ups aren't sure.

Has anyone worked with Alpha Project and can give feedback from a landlord's perspective?

I have an applicant from them with a 504 credit score and an " unlawful detainer" on record w/ a judgement amount of around $5,000. So, typically, he'd be denied. I want to give them a shot, but the higher-ups aren't sure.

Nicole Deuerlein · Answer

I have rented to two people from Sec8 recently and I'm very disappointed. They want an unsigned lease to decide what the person's portion of the rent will be.

I can't put an official date of move-in on the lease until they approve them first, so I have to estimate a date and put it on the lease. That would be fine if they weren't using that to determine the prorated amount for the next month. If I can't move the tenant in by that estimated date I put on the unsigned lease, then the prorated calculation will be different.

They don't pay the first month's rent up front which we require before move in, so these tenants had to pay out-of-pocket at first to get in. It's taken a long time for SDHC to pay us. I had one tenant not get paid for, for 3 months now because of some silly mistake on her end of the process. The other we're not getting money for until may 12th which is a week late.

I also went ahead and used Alpha Project and they at least paid the first month's rent and deposit for their client, although they're running late on the deposit and the tenant just moved in a few days ago. I guess usually they don't pay the first month's rent up front and we had to put a special request in for that.

I think moving forward with Sec.8 and NPOs that get funding from SDHC ( Sec.8) I'll try to only move tenants in on the 1st of the month to avoid confusing proration payments from SDHC, and I'll only accept people who can pay their first month's rent and deposit upfront which I know will limit who can actually apply, but I need to treat them just like any other applicant.

It was nice to fill some long standing vacancies this way, but it was such a headache, and I had to make concessions that we're not supposed to make.

Bjorn Ahlblad · Answer

@Nicole Deuerlein are you guys doing anything with Section 8? That is a tried and true model and you still need to screen. Lots of LL's here use the platform.

Nicole Deuerlein · Answer

Well, we do have more vacancies than usual right now. We have 5 move outs in the next month plus 5 current vacancies. Many people are moving in with family to save money because they lost their job due to Covid-19. One lady broke her lease for a family emergency. Another,lost his job, got in a car accident, and now he and his wife are getting divorced so they broke their lease. It's been an interesting first month and a half on the job, to say the least.

It is appealing to have a guaranteed rent payment each month, but maybe it's too good to be true.

If the Alpha agent sends me a family for our vacant 2 bedroom/ 2 baths, I'd be very happy.

I'm leaning toward denying this applicant because it's for a 1 bedroom, and we get plenty of inquiries for those. It's the 2 bedrooms we're having a hard time with right now.

Again, thanks for the advice; it's really helpful!

Nicole Deuerlein · Answer

Thank you for your feedback!

Dan H. · Answer

I have heard of Alpha Project but I have never dealt with them.

From my perspective vacancy rates are so low that the only reason to go this route would be to be altruistic.   If I feel charitable, I think I would rather donate to a good cause than rent to a person that has that type of credit score and detainer.

You did not indicate if the unit was a SFH or in a MF.  If it was in a MF, I would be even less likely to want to take that sort of risk.

It would be real nice to see a dozen people come on here and say that they have had a positive experience in this scenario.  However, I think it is extremely unlikely.  I really wish I am shown to be wrong.  That would be great.

Good luck

Bjorn Ahlblad · Answer

@Nicole Deuerlein welcome to BP! I have not heard of Project Alpha but there have been others making similar claims the feed back I read was they pay for a while..... Always trust your pre-determined screening criteria. Why go out on a limb for low scoring tenant they will turn their backs on you in a heartbeat.  A 504 score + an unlawful detainer  means they are irresponsible and have no understanding of 'cause and effect'. All the best!