BiggerPockets

Why would you give them a reason in any event? Freakyness or otherwise?

Show the property, let them fill out any application you have and do your background check.

Later just tell them you won't rent to them as a result of your investigation. If they press you for why, reply that the background check is confidential and if you told them why, you'd be violating that confidentiality, which is true.

Chances are, you're going to find some colorful background anyway. I don't think I've ever examined a fully truthful application.

I once had "Mom," as in their mom, as personal reference. When I asked if she would rent to her daughter, there was a long, telling silence. Was I going to give up Mom as the reason why I wouldn't rent to the daughter?

While Equal Housing Laws prevent you from descriminating, I've never heard of any that force you to give a reason for denial. Those that you contact are only going to be honest if they believe you won't be reporting back to the prospective tenant, and when you call those former landlords and employers and such, you should be telling them that any information they give is confidential and won't be shared with the prospective tenant.

No upside in disclosing why.

Ralph,

It is a matter of managing my risk. If I know I don't want to rent to someone when I see them, why would I risk my safety bringing them into a house?

Mike,

What kind of reaction do you get out of them when you tell them you are denying because "you look like a freak"? Do they start to get "excited", or do they just leave?

Originally posted by Mark Yuschak

I'd show them the property anyway in hopes that they fill out the application. My application fee is $20. If nothing else, that's another $20 of income! I'd start doing the investigating by doing all the free checks first (talk to a previous landlord, etc.) to justify why I'm denying their application.

This seems pretty unethical.

Define freaks.

... for example, I had one freak that had K I L L tattoed on his knuckles. I'm not showing anything to some scumbag like that!

What kind of reaction do you get out of them when you tell them you are denying because "you look like a freak"? Do they start to get "excited", or do they just leave?

Most of them just leave. However, I've had a couple of people get quite animated. I don't care! If a person's a freak and yet they still ask, I'M TELLING THEM!

Mike

What's unethical about charging the fee and starting the application process only to find out that they're lackluster?

If someone looked like Marilyn Manson and passed all screening, I would not rent to them. Do you think the neighbors want that kind of trash living next to them? I know I don't.

Thanks for all the opinions. I'll take it on a case by case basis.

I need to check back more often.

"It is a matter of managing my risk. If I know I don't want to rent to someone when I see them, why would I risk my safety bringing them into a house?"

If your safety were really at risk, telling them you won't rent to someone who looks like a freak would certainly be one way to find out. As long as they think you might rent to them, they'll be nice.

I've never run into Mr Kill Fingers, but early on, there was the woman who passed the phone screening. She showed up with her 6'5" 300+# boyfriend, who wouldn't give me his name, wasn't going to be on the lease, but would be staying with her. I told them right then to not bother with the app. They left me in one piece and it was shortly thereafter, I ceased any such face-to-face confrontations and stopped letting my wife show the apartments.

My phone interview includes enough information that I am able to do a courts check and check the local landlord assoc "don't rent to" list. Calling back and canceling is not uncommon.

If we do get to the showing, I just find it easier to go through the motions, I'm already there and what's another 10 minutes. Often they never call back, but when they do, I still don't tell them why.

My advice is to base your decision on the prospects credit report, job history, and income.

Anything less seems foolish to me.

My advice is to base your decision on the prospects credit report, job history, and income.

Unfortunately, you can't do that if you have low income tenants. I have a mix of nice SFHs and low income apartment buildings. Low income (Section 8) type tenants almost universally have bad or no credit and many don't have a job (they live on government handouts and the underground economy). In addition, it is particularly difficult to judge young applicants by their credit/job/income. Again, many times they don't have credit (or it's bad) and they have SSDI, or they have had a job for only a few months (how long have most 19 year olds been at their job?).

The point is that if I waited for someone with good credit, good job history, and good income to fill my low income rentals, I'd be out of business. What's more, it's completely unnecessary to wait for such a person. Many low income people are excellent tenants, even though they have no credit, no job, and very low income.

Young people can be druggies and it won't show up on their record, because they haven't been caught yet. Disregarding the obvious signs (the way they dress; inappropriate tattoos; inappropriate piercings; oversize pants; etc) is just an invitation to trouble.

If you don't disqualify them appropriately you could be subject to discrimation lawsuits or housing authority visits. So disqualifying them after doing the credit/background checks is the only way to CYOA.

The bottom line is that you must follow the law. It is not discrimination to deny someone because they choose to look like a freak! Freak is not a protected class. "K I L L" tattooed on the fingers is not a protected class. Inappropriate piercings is not a protected class. While these things are not protected classes for discrimination purposes, they are excellent indicators that the person is a scumbag and I certainly don't ignore them.

Mike

On the low income housing, I can understand your point to some extent.

Most of these folks will have a poor credit score, and the prospect needs to be looked at in a more non-traditional way.

I just feel that a decision based only on looks and the cleanliness of a car might not be the best business habits to forge. I am not saying that these are not factors to consider, but more steps should be taken before a final decision is made.

If you really get a "gut" feeling that this is not a good person, I feel that there are better ways to deal with it than by putting yourself in a potentially dangerous situation. I see nothing good happening by "exciting" a prospect and/or refusing to show them the home. If this is really a bad person, they could do you some physical harm, or worse!

I can also see some legal issues that could happen. Even though the person might not be in a protected class, it does not mean that they will not make an attempt to sue you. While it might be frivolous, it still takes time and money to defend yourself.

My advice is to at least go through the motions of your normal protocol. That way, if the person does try to sue for something frivolous, you have all of your records showing that they were treated the same as every other tenant prospect.

Important Point:
Michael, It is great advice to take a look at the criminal records. I do not think enough landlords take this into account, and it is something every landlord should add to their screening process.