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Updated almost 4 years ago,
Section 8 protected tenant in Oakland, CA - rent payment
Hi BP! I would very much appreciate your insight on the following:
I am about to close on a duplex in Oakland, CA. The upper unit is vacant but the lower unit is occupied by a section 8 tenant. Just before listing the property the owner was able to get an approved rent increase by the housing authority to market rent which is why we got into contract. However the current owner has to this point failed to provide me with proof of payment for that new rent ( that just started 2 weeks ago). My concern is that the tenant is about to turn 60 and has been in the unit for 20 years and therefore is a protected tenant. Since this represent a significant rent increase for the tenant's rent portion (even-though what she is paying is negligible for a 3 bedroom unit thanks to the section 8 voucher) I am concerned she may not be able to pay the new rent. Or simply may decide to stop paying considering the COVID situation (or maybe has already not been paying rent as far as I know)
Would you say it should be a deal breaker if I do not get proof of payment of new rent by tenant before closing or not necessarily? What are the main concern I should have regarding that tenant being section 8 and protected per what I described? The trick is that I am under contact at a god price so I would like to make this work.
Thank you!