Vernon, British Columbia · Member since 2014 · 7 posts · 0 votes
I'm in a bit of a pickle right now trying to decide how to go about denying an applicant. I know the laws in British Columbia that landlords need to following regarding discrimination, but I'm kind of stuck with what I should do:
I have an applicant that currently doesn't meet my requirements for minimum income. She is pregnant and will be going on maternity leave in January, so her monthly income will be even less. This would normally be a no brainier, but she's also applying for family maintenance, which is a fancy way if saying child support, and rent payments would be paid directly to me. When I looked up the family maintenance website for my province, they have a department specifically for enforcing payments from the person paying the child support. So this tells me that family maintenance checks aren't guaranteed (as they are with social assistance) because you are relying on the other person to be able to pay their support payments. I'm not allowed to discriminate based on types of income, but what if there's a chance I don't get the rent check? I'm going to call the family maintenance office tomorrow, but I'm wondering if anyone has encountered this or has any advice on how to turn down this applicant.
Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
11y
@Michelle Chabot I think you're reading into the spirit and letter of the law too much here, and making it something that it isn't. (I don't know BC law but I doubt I'm off here) The law with regard to qualifying an applicant is that you can't discriminate based on source of income. It (assuming) doesn't say anything about future possible income that is not currently a source.
You make decisions based upon today and the facts that are presented. Today the income she has presented is not sufficient to meet your rental criteria: case closed. That is what you do and that is what you tell her.
Property Manager · Big Bear Lake, CA · Member since 2013 · 585 posts · 330 votes
11y
If you don't have another applicant that is a better fit right now, then if she calls you back to ask about her status, just tell her that you are still taking applications and will let her know when you make your decision. There is no rule about how long that might take.
Hopefully you find someone more stable soon.
If you have another applicant that you want to rent to, then tell her that the vacancy has been filled. She doesn't have to know the details.
Vernon, British Columbia · Member since 2014 · 7 posts · 0 votes
11y
Thank you Michelle, that sounds like the perfect response. Normally I wouldn't have no problem with income assistance because it's actually guaranteed rent, but like you said, the family maintenance sounds to be more unstable and I cannot afford that right now.
Vernon, British Columbia · Member since 2014 · 7 posts · 0 votes
11y
I hadn't checked the credit score, but she mentioned that the score might have been affected when her baby's father applied for credit cards in her name and racked them up. That is even more concerning, since I would essentially be relying on him to pay the rent.
Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
11y
@Michelle Chabot I think you're reading into the spirit and letter of the law too much here, and making it something that it isn't. (I don't know BC law but I doubt I'm off here) The law with regard to qualifying an applicant is that you can't discriminate based on source of income. It (assuming) doesn't say anything about future possible income that is not currently a source.
You make decisions based upon today and the facts that are presented. Today the income she has presented is not sufficient to meet your rental criteria: case closed. That is what you do and that is what you tell her.
Investor · White Haven PA · Member since 2014 · 362 posts · 221 votes
11y
Just be very careful about denying her and what you say.. Less is better.. I like the idea of saying your still considering other applications and you will let her know when you make a decision. If you do end up taking another application just tell you that you decided to accept another application and don't go into specifics. BTW once you get your information I would also delete your original post Just in case... : )
St Thomas, Ontario · Member since 2013 · 575 posts · 408 votes
11y
I recognise the problem, assuming BC human rights law is similar to Ontario it is indeed true that you cannot discriminate based on source of income. Also, in Ontario you cannot use formulas such as income having to be 3x rent as this has been ruled discriminatory (US readers please note, Canadian landlords have their work cut out for them at times, but not always - see below). But you are allowed to winnow out applicants based on credit score, and it is imperative that you obtain a credit score and look at that. In my experience any problems that an applicant refers to in the application process are more often than not much bigger than they let on.
Finally, unlike in the US, if you decline a tenancy application in Canada you do not have to give a reason. It is imperative that you do not do so since there are so many grounds on which a human rights could conceivably be based it is important that you do not give any information that is not required since this might produce liability. My standard decline letter reads:
Dear X,
Thank you for viewing the property at XXXX recently. After your visit you made an application for tenancy. We have now had an opportunity to review this application and based on the information in the application we are declining the application.
We wish you well in your search for rental accommodation and hope that you find a unit suitable for your needs.
Sincerely,
--
I hope this helps. From what you have said this is a difficult case but I would let the credit history be the deciding factor.
Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
11y
@Michelle Chabot it's unclear from your post what exactly is stated on the application about her income and what is on the actual rental application. You must make your decision based on the current situation presented on your application. Something that is applied for is not income. What if she is denied? Just as going on maternity leave in the future can not be used to disqualify.
If it's true that amount of income can not be used to disqualify an applicant, I agree with the need to pull credit. She is likely only telling you part of the story and it will be in shambles and be great ammunition for moving on to the next tenant.
As others have alluded to, you can string out an applicant by saying you are waiting on additional information or are still evaluating applications. Most will eventually go away. Just know that you should not lie and say you need additional information when in fact you have everything. Also know that does not protect yourself if they do end up making a claim for discrimination. It may actually support their claim.
There are people that teach you should be applicants that you don't want to rent to into the "pending" file. That is, they are a pending application until they get enough income or their credit cleaned up or whatever you find lacking in their application. You can then tell them their application is still pending. You might share why it's pending if they ask.
Real Estate Agent · Circleville, OH · Member since 2008 · 633 posts · 488 votes
11y
*Not in Canada, not giving legal advice, consult a professional*
I would just remind you to make sure that you process all applications fairly. If income could be temporary, then treat all applications like that. I personally have a time period where I will allow certain tenants. If I have a property and it's just listed, I typically have it on the market for 2 weeks before I'll even look at applications that have any type of assistance. I then will wait another 2 weeks before I'll start calling those applications back to go to the next step of prequalification/approval.
I remind all my tenants and prospective ones that we're all in the same boat together. My job as the landlord is to ensure high quality tenants that pay on time. Their job is to pay the rent on the time. It's a mutual relationship as the better my business does (The business of providing them clean, affordable, safe housing) the quality of life of ALL my tenants will be impacted positively. If I continue to rent to poorly qualified tenants who do not pay on time, and were risky to take on in the first place, it will negatively impact the quality of life of all my tenants.
Buy and Hold Investor · Nashville, TN · Member since 2013 · 264 posts · 102 votes
11y
With an applicant like this, I suspect any amount of digging will give you multiple reasons to (legally and ethically) disqualify her. Pull credit is step one, I think.
Rental Property Investor · Holley, NY · Member since 2011 · 507 posts · 347 votes
11y
@Stephen E. - your post is very helpful and critical to recognize. This can be said between states on the US side of the border as well. It is imperative that BP users recognize that questions they have and answers given cross political borders and the answer on one side of a boundary could be totally wrong/misleading on the other side.
We all are faced with this type of situation at one point or another. Being prepared to handle it when it happens is beneficial. I am a licensed RE broker in NY and have a reasonable education (not to be read that I know it all) in Fair Housing, property management, etc. I am also an experienced landlord. I am not giving legal advice here, only my opinion.
When I deny an application, I simply state "...based on the information provided, I have decided not to approve your application at this time...". At times, it is difficult for the other party to get this through their head, so they will push for a better answer. At that time, I simply say the same thing over again. Sometimes I will say the same thing 10 times because they want me to give more information. I do not give any more information.
Every once in a while, I get an application that at first I might have to approve in order to comply with the law because, at first glance, on paper there is not a reasonable reason to deny. However, you should be throrough processing all applications and not only ASK questions but VERIFY answers. In @Michelle Chabot 's original post, it appeared that the maintenance payments are POTENTIAL and FUTURE income. Therefore, there is no way to verify that information so it is my opinion that it can't be considered. This could reasonably be argued in court, but seek your own legal cousel before interpreting what I just said.
Another useful question on my application reads "Have you ever been evicted?". Right after that I ask "When?". First I will say that it is surprising how many answer honestly after I added this question. Second, however, is the fact that if they lie and I check landlord references and found out that they lied, they are denied for falsifying their application. This has been helpful in previous situations.
To clarify the thoughts behind my answer, I do this with EVERY application I look at. I don't do this only with the applications that I "want" to deny. I have had applications come in that at first seemed almost perfect, only to find that the applicant was a professional liar. It doesn't matter what the liar looks like on the outside or what their family situation is. A liar is always a liar. I won't approve a liar or somebody that doesn't meet my minimum criteria simply because I am afraid of a potential Fair Housing violation. They either meet it or they don't.
I will go back to the beginning of my post to say, consult your attorney. My post (and the others) can be read by anybody anywhere and what I do may or may not work in your location.
Investor · Eureka, CA · Member since 2014 · 233 posts · 222 votes
11y
I tend to feel very strongly about income discrimination and the laws protecting people from it, however, I don't see this instance as being much of an ethical dilemma. Her current income doesn't meet your requirements, and she doesn't have a source of public assistance or other income at this time to support her financially. I can understand the pangs of guilt looking at what kind of a situation she could be in a couple months, but you are a landlord, not a social services agency. If I had applied, not had sufficient income, and told you I was about to leave my job due to an injury, but had not yet applied for (or had applied but had not yet been awarded) injury compensation yet, I would hope you would tell me no in a heartbeat. I see this situation as being no different.
Where things would get tricky for me (and likely legally) is if she was eligible for child support, had applied and had been awarded it, but the (presumably) father wasn't paying. I'm guessing your legal obligation would vary widely between municipalities.
Good luck and let us know what you decide/how it all works out.