Thursday, August 03, 2017

Still more dribbles on senior qualification for rentals

I’m getting a little more info on the issue of retirees renting regular apartments and qualifying based on assets.

The latest feedback is that many landlords will consider assets favorably as long as they are liquid (cash or in accounts that don’t lose principal).  It sounds like they’d need to see at least a year’s rent. Maybe not all.  When retired people qualify on income alone, the rent is supposed to be no more than 3 times the income –but I wonder if that refers to subsidy.  4 times is more common. 

Some landlords offer varying length leases with lower monthly rents for longer leases.  It is logical that they would be more amendable to the whole-term-in-advance approach. 

At current low interest rates, it is difficult to convert a cash asset basis into annuity income. 

If Congress ever did make cuts in social security to existing retirees, like as a result of a debt ceiling crisis, that could destroy qualification. Theoretically this is constitutional, and one could conceive of a cutoff based on assets, as if to penalize having saved all one's life. 

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