Renting to Illegal immigrants

Renting to Illegal immigrants

Rental Property Investor · Phoenixville, PA · Member since 2015 · 119 posts · 61 votes

I'm not sure if this has been touched on previously but it recently became an issue that I never planned on dealing with.

My business purchased a duplex back in November, and one of the tenants picked up and moved out with no notice about a month ago. Since then, we found another duplex and managed to get it under contract on a short sale. The current landlord gave the tenants 2 weeks notice to clear out, and when we were touring through it one man asked if we had another unit we could rent to them. We did so I offered them our newly vacant unit across town. When I went to get background checks he mentioned that he and his wife and their daughter did not have social security numbers and were living in the US illegally. 

I called the references he provided for his employer and previous landlord and it all checked out. So far so good, but it has only been one month. Does anyone know the legality of renting to illegal immigrants? I would also like to hear some best practices for dealing with this if anyone has stories to share. 

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Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
11y

Christian,

Show some compassion. We're fortunate enough to be a landlord and live in the best country in the world. 

Based on my experience, most illegal immigrants are hard workers and pay their rent. They sacrificed their lives to come to this beautiful country for a chance to a better life. Not only they are hard working, they tend to be more family oriented. They work hard to provide for their family here, and at the same time save money to send home to help out their nuclear family. Don't take that away from them. Give them a chance. 

Just my 2 cents. 

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  • Investor · Leominster, MA · Member since 2011 · 1k+ posts · 589 votes
    11y

    If you don't know he is illegal what is the problem? If you do know what are you going to really do? Do you have absolute proof they are illegal? Obama doesn't care that they are here so why should you? I don't think you are going to get into any trouble but I would just be concerned that they will pick up and leave in the middle of the night at some point. If they are working and the kid is in school this is not likely but always a possibility. Honestly I wouldn't even spend any money on an attorney looking into this. If you're concerned, don't rent to them. If you are getting good money from them keep them on a short leash and just don't let them get behind on their rent. 

  • Rental Property Investor · Phoenixville, PA · Member since 2015 · 119 posts · 61 votes
    11y

    He told me that he was here illegally. His daughter is in school so hopefully that is motivation to stay!

  • Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    11y

    From what I have heard , the illegal immigrants pay their bills .  But I have also seen the aftermath of when a illegal alien couple  rented a single family house , there were 15 bunks made of plywood in the basement .  Problem is how do you sue for damages when the identification you have is a forgery ? 

  • Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    11y

    Christian,

    Show some compassion. We're fortunate enough to be a landlord and live in the best country in the world. 

    Based on my experience, most illegal immigrants are hard workers and pay their rent. They sacrificed their lives to come to this beautiful country for a chance to a better life. Not only they are hard working, they tend to be more family oriented. They work hard to provide for their family here, and at the same time save money to send home to help out their nuclear family. Don't take that away from them. Give them a chance. 

    Just my 2 cents. 

  • Investor · Prairieville, LA · Member since 2015 · 311 posts · 424 votes
    11y

    One thing I would look at is if your state has passed stricter laws on his.  Oklahoma did this a few years ago, possibly criminalizing renting to them.

  • Attorney · Claremore, OK · Member since 2013 · 125 posts · 61 votes
    11y

    You may want to look at 21 OS 446 which makes it a felony to "conceal, harbor, or shelter from detection any alien in any place within the State of Oklahoma".  I don't practice criminal law so I can't provide any advice on this law or how it may be interpreted.

  • San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    11y

    In CA you can't ask applicants what their immigration status is, so here you'd be off the hook.

    The problem I see, potentially, is that you contacted the employer, knowing he's illegally hiring this guy.  I just wonder if you could get in trouble for being basically in collusion with the employer?  Or as was mentioned, failing to report the employer and the tenant?  In the state they are in?

    I'd personally, be really uncomfortable with this situation.  Regardless of the plight of illegals, my job is to protect a very expensive investment, and if someone can't be taken to court or sued or have their wages garnished, etc., I am not going to gamble on them.

  • Jennifer T.Pro Member
    Investor · New Orleans, LA · Member since 2014 · 1k+ posts · 944 votes
    11y

    I personally would not rent to someone without a social security number for precisely the reasons @Sue Kelly stated above.  There just isn't any recourse if they cause a lot of damage.  Whether they are an illegal alien or not.

    With that said, I suspect illegal aliens would usually make great tenants for all the reasons @Minh Le stated.

  • Peter TverdovBusiness Member
    Developer · New Brunswick, NJ · Member since 2015 · 1k+ posts · 2k+ votes
    11y

    I evicted illegals the first day I bought a multi-family house. 12 people living in absolutely disgusting living conditions in an apartment for 4. They were subletting rooms to people they didn't even know all while not working, not speaking English and getting every type of government benefit to boot. The apartment was by no means in good condition when they moved in, but when they left it looked like a tornado went through it. I wouldn't rent to illegals, way too risky. I have seen multiple houses where they create unsanitary living conditions, pack people in the home like sardines and attract crime. That is based on experience, not opinion. 

  • Investor · Allen, TX · Member since 2014 · 39 posts · 5 votes
    11y
    I have illegal tenants that I inherited from the seller. Best tenants. Pay on time every time. They give no trouble at all.
  • Real Estate Agent · New York, NY · Member since 2015 · 31 posts · 13 votes
    11y
    My experience told me that they are good tenants. Two families that I have stayed in my house for 5 years and still counting. Most of them are in construction and they pay cash for their rent. Because they are in construction, they help me do repairs on the house. This saved me lots of repair expenses and time to respond to emergencies. I believe it's the best long term tenants. Another plus is because they have no credits. Therefore, it is not easy for them to move to other places because most landlord do background checks. They mostly don't know the law, so they won't play games with you. They will stay in your place for a long time. If you are willing to give it a try, you might find this as hidden gems. Good luck!
  • Linda WeygantPro Member
    Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
    11y
    Originally posted by @Peter Tverdov:

    I evicted illegals the first day I bought a multi-family house. 12 people living in absolutely disgusting living conditions in an apartment for 4. They were subletting rooms to people they didn't even know all while not working, not speaking English and getting every type of government benefit to boot. The apartment was by no means in good condition when they moved in, but when they left it looked like a tornado went through it. I wouldn't rent to illegals, way too risky. I have seen multiple houses where they create unsanitary living conditions, pack people in the home like sardines and attract crime. That is based on experience, not opinion. 

     Doesn't this happen with US citizens too?  I think the issue is that you can't paint a group of people with the same brush.  Every group is going to have bad apples, regardless of their race, religion, gender, socio-economic status, etc.  Bigger Pockets is full of stories of tenants making houses worse instead of better and the common denominator is they are all people.

  • Laurel, MD · Member since 2015 · 101 posts · 30 votes
    11y

    People who are here legally have to tread carefully because they can be deported if arrested, so illegals that have any sense keep their head down and don't do anything that will bring them into the court system.

    @Jennifer T.

     A landlord, the local grocery store and the utility company etc have no business whatsoever knowing a tenants  SSN and if I were you avoid collecting them. Food for thought?

    http://www.landlordology.com/do-landlords-need-social-security-numbers/

  • Jennifer T.Pro Member
    Investor · New Orleans, LA · Member since 2014 · 1k+ posts · 944 votes
    11y

    @Ihe Onwuka, that is good food for thought and I've definitely been considering using a screening service in the future, just to make my life easier.  But whether a landlord runs a credit check or uses a screening service to do that, potential applicants will still need to have a social security number.

    And while the above article does have good points, one does need to keep in mind that it is written by company that runs a screening service, so their advice is certainly going to be biased ;).  Not necessarily wrong, but they are not impartial.

  • Durham, NC · Member since 2015 · 7 posts · 4 votes
    11y

    I've seen so many illegal immigrants around me at Los Angeles.  Especially if their children are going to school, they wanted to be the best tenants to let their children finish the school at least.  As long as they have bank account and you receive at least one or two month rent deposit, I wouldn't go against it at all.

  • La Puente, CA · Member since 2015 · 51 posts · 9 votes
    10y
    Originally posted by @Account Closed:

    In CA you can't ask applicants what their immigration status is, so here you'd be off the hook.

    The problem I see, potentially, is that you contacted the employer, knowing he's illegally hiring this guy.  I just wonder if you could get in trouble for being basically in collusion with the employer?  Or as was mentioned, failing to report the employer and the tenant?  In the state they are in?

    I'd personally, be really uncomfortable with this situation.  Regardless of the plight of illegals, my job is to protect a very expensive investment, and if someone can't be taken to court or sued or have their wages garnished, etc., I am not going to gamble on them.

     If an illegal alien doesn't have a legal Social Security number (SS#), how do you screen them?

  • San Antonio, TX · Member since 2015 · 125 posts · 102 votes
    10y

    If you do choose to keep them... I would set some very strong ground rules. :)

  • Rocklin, CA · Member since 2015 · 207 posts · 66 votes
    10y

    I have a close personal friend that has over 100 SFR's and he self manages he prefers Illegal Immigrants as tenants. For example he has a six unit building in ca that has a tenant of 25 years in it that tenants son which was born in the unit which he is now 24 and has been renting a unit in the building for 5 years. The tenant has never paid rent late or complained about any minor issue that he could not easily repair himself they keep the place very clean and treat the property as if it were theirs. Just my two cents.

  • New to Real Estate · Central Alabama · Member since 2015 · 44 posts · 5 votes
    10y

    My target population is actually illegal immigrants. RIght now they are renting in the slums for more money than I am asking and they keep their places clean. Yes screen them, but you should do that to all of them. I am bilingual and have learned to love and respect their culture. For the most part they are here to better their lives, but yes some do cause problems, but I believe every race, and nationality has a few bad apples. 

  • Newnan, GA · Member since 2016 · 1 post · 0 votes
    10y

    I have personally lived in an apartment complex for two years where 80% of the tenants were latinos. some confirmed illegal. Over that two years, I have observed they keep their aparments in bad condition, are very loud and bothersome. Didnt follow any of the complex rules because they felt they were immune to eviction because the landlord takes kickbacks from them to keep his mouth shut. He is under investigation from the depts of homeland security and housing and development. I say all these things about illegals in GA because i have experienced them personally. Their breaking the law. Don't break it also. 

  • Wholesale Investor · Los Angeles, CA · Member since 2015 · 9 posts · 3 votes
    10y

    thanks for the feedback. I'm currently debating on wether to rent to a family with papers or not. They seem like clean cut people, hard working and well manered. I'll give them a shot. Wish me luck! 

  • Architect · Papillion, NE · Member since 2015 · 1k+ posts · 840 votes
    10y

    If you decide to rent to them... I would do a month to month lease for easy removal process.

  • Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    10y

    @Account Closed noted the issue for Calif - - can't ask and it is NOT a reason to deny.

    Seems to be a BI G issue in this elect year BUT . . .

    My screening process requires a Credit Check and that requires a SSN.  Without a CR, that fails the application vetting process.

    Personally, I have a much bigger problem with those paying in cash!

  • Hamtramck, MI · Member since 2017 · 9 posts · 5 votes
    9y

    Does anyone know the laws in Michigan regarding renting to illegal immigrants? 

  • Real Estate Agent · Charleston, SC · Member since 2016 · 5 posts · 2 votes
    9y

    @Diana Serrano did you end up renting to the undocumented family? I am in a similar situation and debating whether or not to give them a lease. The potential tenants seem like clean cut people, hard working and well mannered as well. - Thanks,

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