The New York City CityFHEPS program is designed to assist landlords and brokers by providing rental assistance to eligible low-income tenants. While it offers numerous benefits, there are a few aspects of the program that could be improved from a landlord’s perspective. Below, I share my experience and evaluate the three things I love and hate about the program.
- Love: Great Rental Income
One of the most appealing aspects of the CityFHEPS program is the financial stability it offers landlords. The rents are competitive and can be quite favorable. For example, I have a studio apartment in the Bronx that I rented for $1,300 in 2020, even though it’s not in the best location and is part of a cooperative with strict rules. I now receive $2,134. Despite the challenges, I was able to manage the tenancy effectively and earn a steady income. The CityFHEPS rent levels are based on the Section 8 standards, which are typically above market rates, making it an excellent source of income for landlords.
- Love: Long-Term Lease Commitment
The CityFHEPS program offers a long-term lease commitment, typically for five years. This guarantees a steady and reliable income stream, which is a huge benefit for landlords seeking long-term tenants. The stability of a five-year lease reduces turnover and vacancy rates, providing financial security without the frequent hassle of finding new tenants. With the City’s backing, it’s easier to manage the rental process without worrying about constant lease renewals or tenant instability.
- Love: Upfront Payment Incentive
Another feature of CityFHEPS that stands out is the option to receive upfront rent payments. For new leases, landlords can receive up to three months of rent payments upfront, which is a significant cash flow benefit. This financial cushion helps ease any concerns about delayed payments and ensures landlords receive timely rent without the usual wait.
- Hate: Long Hold Times and Unclear Communication
One of the most frustrating aspects of dealing with CityFHEPS is the customer service. As a landlord, it can be incredibly difficult to get answers about what happened to your checks if they stop coming. The hold times are often lengthy—at least 45 minutes or more—and this problem only worsens around the holidays. Once you finally manage to speak with a representative, they often ask you to conference call with your tenant, which can further delay resolution.
- Hate: Inefficient Landlord-Specific Communication
While CityFHEPS has a dedicated line for tenants, there is no advertised direct number for landlords without having a service request number. In such cases, I had to resort to standard customer service, which added another layer of confusion and delays. It’s disheartening when you’re trying to resolve an issue and are met with technical barriers or disjointed support. On the rare occasions that a representative does assist you effectively, the contrast between those interactions and the usual experience can feel stark. You may have to call more than once.
- Hate: Paper Checks Instead of Direct Deposit
Another downside of the CityFHEPS program is the use of paper checks instead of direct deposit for rent payments. While this may seem like a small issue, it can lead to delays in receiving payments, especially if the checks get lost or delayed in the mail. This system isn’t as streamlined as it could be, especially given the modern conveniences available through electronic payments. On several occasions, I’ve had to wait longer than expected for the checks to arrive, which can disrupt cash flow and create unnecessary stress.
Conclusion: Weighing the Pros and Cons
Overall, the CityFHEPS program offers a number of advantages, especially in terms of financial support, long-term leases, and incentives for landlords. The guaranteed income and upfront payments are significant benefits that can make it a great option for landlords seeking stability. However, the customer service challenges, delays in payments, and inefficient communication processes can be a major source of frustration.
In the end, while there are a few hurdles, the good outweighs the bad, and the CityFHEPS program remains a viable option for landlords willing to work through the challenges. It provides an opportunity for passive income and stability, making it an appealing choice for many, especially those who are open to supporting tenants from shelters or those in need of stable housing.
Tips
- Always have your tenant’s date of birth and case number handy.
- If you know the contact details of your tenant’s case manager, keep that information handy for quicker communication.
