Low Income Renters – 5 Essential Advantages to Focusing On These Tenants

It's usually your first instinct to reject a tenant's application if they have a poor or no regular source of income. However, if they would be a suitable resident if not for this one strike, you might want to rethink how you assess renter qualities. If a low income renter appears to be highly qualified, it's often worth giving them another chance.

Low Income Renters

Are you getting set to rent out a new place? You’re probably going to turn down any potential tenant who can’t show evidence of consistent, predictable income. After all, your primary goal is to ensure that your rental earns revenue while it is occupied.

It’s usually your first instinct to reject a tenant’s application if they have a poor or no regular source of income. However, if they would be a suitable resident if not for this one strike, you might want to rethink how you assess renter qualities. If a low income renter appears to be highly qualified, it’s often worth giving them another chance.

Before you decline or approve a tenant’s application, it’s critical to understand the various reasons why they may now have a low income or perhaps no visible income. Taking the time to meet with a potential tenant and explain their situation can often offer you a more concrete framework to make a final decision.

Now I understand that is can be concerning to prioritize low income renters when you need to prioritize your mortgage payments, but there is a way to do both. All you need is the right financing and the ideal strategy. To learn more about how you can get both, simply click the link below to get started.

Low income renters come in a variety of shapes and sizes.

People may be unable to demonstrate a living income for a variety of reasons. It’s critical to think about the different types of low- or no-income tenants you can encounter and assess their financial condition in a larger context:


The majority of people live on a pension when they retire. This fixed income may appear to be below, but it is, in most situations, quite stable. Furthermore, senior residents are less likely to cause considerable wear and tear to your property. This implies that, despite their modest income, renting to retirees is often very desirable.


If you own a property near a college or university, there’s a good possibility you’ll get rent applications from students. If you have a student seeking a rental, they are likely to be unemployed. They do, however, have student loans. The majority of students are more than capable of paying their rent using student loan funds. It’s always a good idea to have a rent guarantor when renting to students.

Disabled individuals

Disabled people are frequently unable to work normal jobs and may be unable to verify employment. The social safety net provides benefits to many people with disabilities. This means that, even if they don’t have a formal job, they are perfectly capable of paying their rent.


If your rental home is located in an area popular with backpackers and travellers, you may receive applications from long-term travellers. Nomad tenants may not show employment in the local community if they are traveling, working remotely, or working holiday visas. Despite this, they are usually able to pay their rent on time.

Social housing recipients

It may appear dangerous to rent to someone who receives social housing assistance. After all, persons who receive social housing payments have almost certainly faced financial difficulties. People who get public housing benefits are, in fact, among the most attractive tenants, and their ability to pay rent is mainly unaffected by outside factors.

Discover Rent To Own With This Step By Step Guide

Concentrating on low income renters

In Canada, social housing systems differ from province to province, and most jurisdictions provide some support to tenants.

The Rent Supplement Component (RSC) and the Housing Allowance Component (HAC) are two social housing schemes in Ontario that benefit landlords (HAC). The RSC is a government-issued stipend paid directly to compliant landlords to assist them in keeping their properties affordable. Meanwhile, the HAC is given to low income renters to help them pay their rent monthly.

Participating in the RSC program and renting to tenants who are part of the HAC program has a number of advantages. Here are some of the reasons you might want to explore renting to low income renters or participating in a social housing program:

Financial hardship protection

When the government assists a tenant with their rent bill, they are more likely to pay the entire amount owing, even if they lose their job or encounter some unforeseen financial hardship. Even if they are unable to pay their share, you will receive the government’s contribution.

Long waiting lists for affordable housing

Many people are on waiting lists to move into inexpensive homes. You’re far less likely to have long periods of vacancy at your residential units if you opt to join in a social housing program or want to provide your rental unit at an affordable cost to low income renters.

Respectful tenants

Social housing assistance normally come with a set of regulations and requirements. As a result, residents are highly aware of the importance of complying to the programmes at all times. When you choose to rent to people in social housing, you’re usually renting to respectable, considerate people.

Access to a wider tenant pool

If you elect to rent to low- or no-income residents, you’ll have access to a much broader pool of potential tenants. You’ll have access to a vast market sector with the potential to make a significant profit. Other real estate investors usually overlook this group of renters, owing to antiquated prejudices.

On-time payments

Depending on the type of social housing program, you may receive rental payments through the government or directly from renters. In most circumstances, timely payments are guaranteed—especially if you receive a subsidy directly from a government body.

While renting to low income renters may appear frightening to the uninformed, skilled real estate owners recognize that low- and no-income residents frequently make for the finest tenants. All you have to do is look past their reported earnings.

Tenants should be vetted in terms of the big picture.

Consider extending your view of prospective tenants’ financial situations if you’re utilising a restrictive definition of income to make all of your application judgments. Examining their condition as a whole will help you come up with better strategies to screen potential residents. Even if your initial screening criteria identified someone, you’re more likely to wind up with a decent tenant and consistent rent.

Securing Your Mortgage for Low Income Renters

If you are looking to secure a mortgage that is stable enough to handle renting to low income renters, give us a call. We work with a wide network of lenders who have various products to help you mediate the risks associated with low income renters.

All you need to do to get started is click the link below to book a free strategy call.

Get Familiar With Low Income Tenants And The Benefits of Focusing On Them