Real Estate Investor 路 Quinton, OK 路 Member since 2016 路 72 posts 路 13 votes
So, I recently listed a property for rent or for sale by owner. I have had several inquires about the property as a rental and the majority of them have been people on disability benefits. I know enough to know that I have to be careful not to discriminate against anyone. I have a couple questions about how to handle this situation.
Is it wise to rent to someone on disability seeing how it would probably be very difficult to evict and get your past rent if the tenant defaults.
If I do not want pets in the home and the tenant has a service animal how do I handle that situation, or any animal for that matter service animal or not.
How do I disqualify them without getting myself into a legal mess.
I am just really hesitant to rent to anyone of disability and would like to hear from someone more experienced them I am in this area.
Beware taking BAD advice. Setting standards just to deny people is BAD practice, BAD business, and ILLEGAL. Instead of worrying about their disability, your ONLY concern should be will they pay as promised, do they have enough income to meet your standards (I look for 3x the monthly rent). As to service animals, they are NOT pets. You cannot deny anyone just because of a service animal. You cannot charge one dime more nor a "pet fee" because service animals are NOT pets. If the applicant wants special features such as a wheel chair ramp, etc they MUST install that at THEIR expense and you can require them to bring the property back to its original configuration at the end of the lease at THEIR expense.
I remember being a renter on disability from 2009 through the end of 2012. Most of that time I was in the hospital. YET, I managed to have my rent paid ON TIME every month, even though I hardly occupied the house. Even once when my home was broken into while I was lying in a hospital bed, the landlord made his way over. The officers comment was that my home was so neat and tidy he simply walked through describing things and I could tell him what was missing.
It seems that people want to find legal ways to discriminate. It happens in housing and employment, regardless of the letter of the law.
I hate to say it, but the fact that you asked this question on a public forum may mean you have already opened the door to problems. I fully understand your question, but these posts would be fodder for an attorney.
@Sean Morrison my ignorance in this area is beyond embarrassing and has been put on public display. I like to look on the bright side of things and all the input I've received from the BP family has been amazing. From now on I will be much more wise in this area of the business.
You can disallow pets, but you cannot disallow service animals. A service animal is not a pet.
My recommendation is to price your property low, so you get a lot of applications quickly. Then review them all, a go off a set criteria based on credit, income, rental history and job .
As a landlord, you will have to follow certain rules. Some you will like and some you wont. Some protect you , and some protect the tenant. For example, selecting someone on disability or no disability is illegal and should not factor in your decision in any way.
Best of luck, but please try to be open minded about people that may be different than yourself.
A perfectly able-looking person could be the most destructive of anyone. Do your due diligence on the factors others have suggested to get the best applicant.
Okay, how do I deny an applicant in the right way, the lawful way, the moral way. Say I have 10 apply for the property and one stands out as the perfect tenant. How do I proceed with letting the other nine know they have been declined.
@Account Closed How detailed does the letter need to be. You didn't meet the income requirements, you didn't meet my credit score minimum, your back ground check did not meet my standards. Things along these lines?
The same thing has been said about Italians, then Blacks, then Hispanics. And it's always been wrong.
Every person is different and it's wrong legally and morally to judge in the way you described.
You may not even care about that but if it gets out that you are this way, your reputation will be destroyed and it will be really hard to rebuild.
It's better to be known as being a person who is fair with everyone then have a reputation of being shady or even worse a person who discriminates based on race, sex or disability. Is that what you would want to read in your local paper about you?
Your reputation is more valuable than all the money you have. Because your reputation is one of the few things you cannot buy.
Save your reputation above all else and you will increase your chances of being successful.
The OP asked about renting to people on disability. Being "on disability" is not the same thing as being disabled. "Disability", either SSI or SSDI, is a source of income, has strict limits on additional income, and is usually meant to be temporary. The recipient would have received an award letter detailing the benefits to be received in the next year.
It seems a simple question to determine if the applicant qualifies based on their award or not. I think it might be possible to have housing paid directly out of the benefits. I also think it would be acceptable to ask when their award review is to be conducted, in case they lose the benefit during your lease.
@Account Closed How detailed does the letter need to be. You didn't meet the income requirements, you didn't meet my credit score minimum, your back ground check did not meet my standards. Things along these lines?
They have specific forms for denial based on credit, background, and income (adverse action letters) especially if you checked their credit because of the fair credit reporting. If you need some good forms talk to your landlord tenant lawyer. Most will gladly give you help since they will want you to use them for evictions. We usually give back the application fee and the deposits if they already gave everything with the application. The fees for the credit and background checks don't get returned though since that's the cost to our vendors.
"搂25-1452. Discriminatory housing practices - Categories or classes of persons protected - Jurisdiction of Human Rights Commission.
A. It shall be an unlawful discriminatory housing practice for any person, or any agent or employee of such person:
To refuse to consider as a valid source of income any public assistance, alimony, or child support, awarded by a court, when that source can be verified as to its amount, length of time received, regularity, or receipt because of race, color, religion, gender, national origin, age, familial status, or handicap;"
It is illegal in Oklahoma to discriminate against an applicant because their income is from public assistance. And it is illegal at both the state and federal levels to discriminate on the basis of a person's disability. I would advise you to approve this applicant unless there is a strong, objective reason not to - such as eviction history, a recent criminal conviction, or their income (including all disability income) is less than whatever standard you have used for all of your past tenants.
The majority of fair housing lawsuits are brought by tenants with disabilities. This is not an area where you want to "go with your gut" or try to avoid a hassle.
If they meet the legal screening qualifications set (Verifiable Employment or source of income, Income Level, Credit, Rental/Housing history, Criminal Background, etc.) I could care less whether a person has disabilities or not, what their race, gender, sexual preference, religion, or political affiliation is, or how many tattoos or piercings they have, etc. The only thing that matters is will they pay on time and take care of the property, and you'd be surprised at how many people who fit the perfect applicant do not do either. Now I may take the best application out of those who qualify, such as more income, better housing history, etc.
Hello I know this post is old by I want to give some information about the Federal law https://www.justice.gov/crt/fa... The law exempt single family home, sold or rented by an owner of comply with FHA laws that's means that you CAN legally discriminate.
Man, this thread is a rough one. Gives landlords a bad name. My advice to everyone is you should never attempt to circumvent fair housing ......End of discussion.
First correction: Using the word "Should follow" is not appropriated, the word "May follow if they want" is more appropriated and convenient. I am just contributing positively with people who ignores the law for lack of knowledge. second:Gives landlords a bad name??, what happen to you!!, This is not a Non profit org,this is a business. this mean, we work for money and want to keep my house "safe". Also, I would like to change your sentence: instead of said: "People should follow FHA Act" per "People should follow the most convenient option for them following the law" If the law allows allow me to be exempt it, will be Dumb if I don't take advantage of this, I can LEGALLY tell somebody "Sorry I don't want your service dog in my house". Go rent the house of James Wise because he is a follower of the FHA Act and he will be very happy to have you with your 6 kids and dogs :)
Just rent to the disabled person with the wheelchair. Please be advised: you might have to widen door ways and lower counter tops and install ramps and grab rails at your own expense if the tenant wont pay. It could run you about 30 grand or more depending. Or don't rent to them and then do the math. See which one provides a better ROI.