Some people collect rents or otherwise manage rental property to supplement their income while working. If they lose their jobs, they may still qualify for unemployment if they don't earn a living from collecting rent or spend a lot of time managing rental property. State laws vary regarding unemployment and rental property, so check with your state unemployment office if you collect rent while unemployed.
Factors Affecting Unemployment
Owning or managing rental property does not automatically disqualify you from unemployment. However, if you spend the majority of your time managing your rental property, the unemployment office may consider you self-employed as an apartment manager or owner. In this case, you would not be eligible for unemployment because you are self-employed rather than unemployed. In some cases, you can get partial unemployment if you are self-employed on a part time basis.
Opening a Business
If you open a business to take care of your rental property, you most likely will get reduced unemployment or no unemployment at all. Most states require you to be available for full time work to qualify for unemployment. If you open a business, you will likely be spending time working on the business, and the unemployment office will probably conclude that you are not available for full time work.
Self-Employment Assistance Program
If you are considering becoming self-employed as a landlord, some states, such as New York, will allow you to join a self-employed assistance program rather than applying for regular unemployment. This type of program allows you to collect unemployment benefits while establishing your own business after losing your job. You are not eligible for this program if you already have your own business at the time you lose your job.
The amount of rent you collect may affect your eligibility for unemployment. If you collect enough rent to pay your basic living expenses, the unemployment office may consider you self-employed even if you have no other involvement managing the rental property. However, if you do not make a living from your rental property and do not spend most of your time attending to it, you may qualify for unemployment even if you collect rent.
Does Rental Income Affect Unemployment?
You are allowed to work part-time while collecting unemployment benefits and seeking full-time permanent work. A percentage of your weekly earnings is...
How to Negotiate with Your Landlord to Lower Your Rent
First, do your research. Check the rentals nearby, and see what their rates are. Are the other rentals cheaper? Do the other...
How to Sell a Rental Property With Tenants
Selling a rental property that has tenants can be an asset that makes your home more attractive to buyers or it can...
Can You Obtain an Auto Loan While Collecting Unemployment?
It's possible to qualify for an auto loan while collecting unemployment --- it depends on your overall credit and financial situation. For...
Can You Collect Unemployment If Your Job Is Seasonal?
Seasonal employees are just that, seasonal. They come in for a short time and leave just as fast when the season is...
How Much Does Renting a House Cost?
The cost to rent a house will depend on the town and neighborhood, but should not be more than 36 percent of...
Can I Draw Social Security Disability and Own a Rental Property?
Whether Social Security disability benefits are affected by the ownership of rental property is dependent on several factors, such as what type...
Can You Draw Social Security & Unemployment Benefits?
Unemployment benefits and Social Security benefits are entitlement benefits issued by the federal government. While unemployment benefits are intended to help a...
Can you Collect Unemployment & Disability?
If employment is not a choice, unemployment or disability may help. The states administer unemployment benefits with federal guidelines. Social Security disability...