As Arizona’s first centralized landlord engagement service, Threshold has been helping property owners and operators provide affordable, stable housing for individuals and families facing homelessness. Since our inception, we have aimed to create streamlined, supportive relationships with our property partners, offering a range of incentives and risk mitigation measures to encourage participation in our program. However, as we approach 2025, we must adjust some of these incentives and mitigation guidelines to continue serving the community effectively.
Starting Dec. 1, 2024, new guidelines will take effect for our incentive and risk mitigation programs, according to Daniel Davis, Threshold’s Director of Landlord Relations.
This blog outlines the new guidelines, explains the reasons behind each adjustment, and shows how Threshold is committed to maintaining a supportive partnership with our valued property owners and operators.
New guidelines for Threshold’s incentive and risk mitigation programs will take effect on Dec. 1, 2024.
Revised Incentives
Threshold offers two primary types of incentives to help property owners and operators navigate the challenges of renting to tenants in tenant-based rental assistance programs. These incentives are designed to make participation in these programs more financially rewarding and to address common concerns about tenant screening and vacancy loss. Below are the key incentives available, along with their eligibility criteria.
New Property Owner/Operator Incentive
The New Property Owner/Operator Incentive is designed to attract new partners to work with Threshold’s rental assistance programs. This incentive offers a financial boost to property owners who are signing leases with Threshold-supported tenants for the first time.
Incentive Amount: Effective Dec. 1, 2024, the incentive amount will be 1.5 times the monthly contract rent. This means the incentive amount scales according to the size and value of the rental unit, ensuring a proportional and fair reward.
Eligibility Criteria: This incentive is available for the first three leases a new partner executes, regardless of the timeframe in which the leases are signed. This replaces the previous six-month introductory period and allows property owners to fully take advantage of the incentive without being restricted by a time limit.
Alternate Screening Criteria Incentive
The Alternate Screening Criteria Incentive is for property owners who lower their tenant screening standards. It helps applicants who may not meet traditional rental criteria. This incentive addresses a key barrier to stable housing—strict tenant screening.
Incentive Amount: $1,000 per qualifying lease. Property owners are rewarded for easing screening standards, such as criminal history, or eviction records.
Eligibility Criteria: This incentive applies after the initial three tenants and is available for leases that use alternate screening criteria. For instance, property owners might consider tenants who:
- Have a criminal history that would typically disqualify them.
- Have prior eviction records that would usually exclude them from qualifying for the unit.
Learn more about Threshold incentives
Click here for a printable version of the Incentives Guidelines
Threshold helps rental property owners and operators manage financial risks from tenant damage and vacancy loss by offering risk mitigation strategies, including move-out inspections, damage claims, and vacancy loss reimbursement
Risk Mitigation and Damage Reimbursement
Move-Out Inspections and Damage Claims Process
When a tenant moves out, property owners should conduct a thorough inspection. This helps assess any damages from the tenancy. Threshold supports owners during this process. We ensure reimbursement for damages beyond normal wear and tear.
Move-Out Inspections: Once a tenant has vacated the unit, the property owner/operator has two business days to request a move-out inspection. This inspection can be conducted by HOM, Inc., or the respective service provider. During the inspection, the inspector will document the condition of the unit with photographs and a detailed inspection report.
Damage Claims: After the inspection, property owners have 30 calendar days to submit a Damage Claim and Vacancy Loss Worksheet. This form should include details of any tenant-caused damages and other expenses incurred due to the tenant’s actions (e.g., repairs, cleaning, or legal fees). The claim is submitted via email to damageclaims@hominc.com. Without a move-out inspection, damage claims cannot be processed, making it a crucial step in the reimbursement process.
Damage Claim Reimbursement
Threshold, through its programs and HOM, Inc.’s resources, offers damage claim reimbursement to property owners when tenant-caused damage exceeds normal wear and tear. This helps ensure that owners do not bear the full financial burden of necessary repairs.
Incentive Coverage: Property owners can receive reimbursement for up to one month’s contract rent. This covers the costs of physical damages to the unit. It includes repairs or replacements of appliances, flooring, or other damaged assets.
Qualifying Expenses: In addition to repairs, qualifying expenses may include:
- Cleaning fees that go beyond what was collected at move-in.
- Legal fees related to eviction or other tenant-related issues.
- Rental arrears if the tenant left unpaid rent behind.
Vacancy Loss Reimbursement
Another significant risk for property owners is the loss of rental income when a unit remains vacant after a tenant vacates. Vacancy loss can severely impact cash flow, especially when it takes time to secure a new tenant. To help alleviate this concern, Threshold offers vacancy loss reimbursement to property owners.
Vacancy Loss Calculation: If a unit stays vacant after a tenant leaves, property owners can be reimbursed for the unoccupied days. The reimbursement is pro-rated from the last day of the month the tenant vacated until the new lease is signed. It is capped at one month’s contract rent and covers lost rental income during the vacancy.
Financial Security: This reimbursement helps protect property owners from significant financial losses during tenant turnover. It is especially helpful for owners who experience longer vacancy periods.
Learn more about Threshold’s risk mitigation guidelines
Click here for a printable version of the Risk Mitigation Guidelines
Why the Change?
“These adjustments are not made lightly,” says Davis. “We understand that changes can be challenging for property owners and operators. However, these updates are essential to align with our budget and ensure that our services remain sustainable and targeted to the tenants who need them most. By refocusing our resources, we can continue supporting operator partners in housing the most vulnerable members of our community.”
An example of how to calculate a risk mitigation reimbursement.
Working Together for a Stronger Community
We understand these adjustments will require adaptation. However, we believe these changes will strengthen the Threshold program and our partnerships. By focusing resources on those most in need, we can create a more impactful program and further reduce homelessness in our community.
We value your continued partnership and appreciate your understanding as we implement these changes. Together, we can create a stronger, more inclusive community for everyone.
Let’s continue to work together to provide safe, stable, and affordable housing for those who need it most.
By choosing to partner with Threshold, you’re not just making a business decision; you’re making a difference in people’s lives. Your commitment to providing housing opportunities for vulnerable individuals is truly commendable.
Thank you for your continued support and partnership. We look forward to working together to create a brighter future for our community.
