Tenant Wants Foster Children

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Tenant Wants Foster Children

Art M.
Chicago, IL · Member since 2015 · 414 posts · 94 votes

Hi Everyone, 

One of my tenants in a triplex are a married couple with a baby and two dogs. The unit is a 3Bed/2Bath in Chicago. Their lease is up mid-2018. They told me they've started the process of hosting one to two foster children. So far, they've been good tenants. I have a two-part question:

1. What are the legal implications of this for me as a landlord? Do we need a lease addendum for every child they foster? Is there some sort of bedroom requirement? Am I justified in increasing the rent or charging some sort of fee?

2. Is this something you would recommend accepting (assuming I can legally say no). I'll probably lose them as tenants at the end of their lease if I don't allow it as their hearts seem to be set on it. Which is good, because far too many people foster children for the money. But on a related note, I'm not sure they know what they're getting into. My wife is a special ed teacher in a low income neighborhood and has a plethora of horror stories about the types of kids who often end up in foster care (sorry PC police).

What say you, BP? Advice much appreciated!

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Account Closed
Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
9y

@Art M.   I am not the PC police but if you are planning on discriminating based on familial status I would not suggest putting it on the internet.  

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  • Michele FischerPro Member
    Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    If it were me I would probably just ask for a courtesy e-mail with the child's first name and age when they arrive and leave, and grant them informal approval for the additional occupants. A three bedroom place can support six or seven people by HUD standards, two in each room and one in the living room. If they are under 18 you do not need to run criminal or be overly concerned about who they are. They will likely not be able to disclose very much information about their identity anyway. I'd assume that visits from the bio parents would be elsewhere, to me that is where the risk comes in. You cannot and should not charge more. I'd be gracious about supporting them; chances are they will have one and choose not to continue because it is such a burnout. And if they do continue, it doesn't hurt you much, especially if they are responsible tenants.

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  • Account Closed
    Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
    9y

    @Art M.   I am not the PC police but if you are planning on discriminating based on familial status I would not suggest putting it on the internet.  

    2Reply
  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    9y

    I would do nothing now then non renew at end of lease if there are any issues at all. If it seems OK renew with M2M to allow you to dump them quickly if the situation (kid) becomes a problem.

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  • Lynn McGeein
    Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
    9y

    I believe they would be protected under familial status laws, so you could do nothing in any case unless it violates occupancy limits in your locality or state.  

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  • Art M.
    OP
    Chicago, IL · Member since 2015 · 414 posts · 94 votes
    9y
    Originally posted by @Account Closed:

    @Art M.   I am not the PC police but if you are planning on discriminating based on familial status I would not suggest putting it on the internet.  

     I'm definitely not planning on discriminating. A foster child is a ward of the state which is why I'm asking.

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  • Art M.
    OP
    Chicago, IL · Member since 2015 · 414 posts · 94 votes
    9y
    Originally posted by @Thomas S.:

    I would do nothing now then non renew at end of lease if there are any issues at all. If it seems OK renew with M2M to allow you to dump them quickly if the situation (kid) becomes a problem.

    That sounds like a good plan. Thank you. They're coming up on a 2-year lease and I was going to bump rents regardless. Could it be construed as discrimination if I renew their lease and increase rents now that they've told me about the foster kids?

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  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    9y

    No. It is normal practice to increase rents annually to maintain market rents to cover increases in expenses.  There is no connection between the foster child and the ending of their lease. As long as your increase is within the range of market based on your annual increased costs as well as any additional expenses you anticipate for a additional tenant you will have no problems. It is normal business practice for landlords to cover cost increases and adjust for changes. 

    You are operating a business and tenants are expected to pay the tab.

    Keep in mind it is normal to transition to a M2M lease at the end of a term lease. Make it your policy to always use M2M and you will not tie your hands in situations like this.. 

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  • Bettina F.
    Investor · Post Falls, ID · Member since 2016 · 606 posts · 699 votes
    9y

    Get information on the Agency that your renters are fostering through.  As a LL, I would meet with the agency and get information from the Agency on the liability insurance that the agency carries on foster families and information on their damage reimbursement policy.  Kids with emotional problems can be destructive, and your property may require repairs beyond normal wear and tear due to the foster kids.  You should step up your inspection schedule and keep open communication with your tenants, so repairs can be made as they occur and the foster agency billed.

    The rental agreement we use prohibits tenants running a business out of our apartments,  So, in my rentals, running a day care is prohibited.  The courts might look on fostering more as running a business, and less as "familial status".   In any case, the OP has a legitimate business interest to be concerned.  

    As an adoptive Mom of older special needs kids, I am concerned that a couple with an infant would foster children, who will most likely be older than their infant child.  I strongly believe that one should NOT adopt/foster out of birth order. They are setting their infant child up for possible abuse by an older foster child with emotional problems.  This couple should wait to foster until their birth child is older.   I expect this foray into foster parenting will be short lived. 

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  • Art M.
    OP
    Chicago, IL · Member since 2015 · 414 posts · 94 votes
    9y

    @Thomas S.  Thank you, Thomas!

    @Bettina F. Thank you, great advice! I completely agree and I'm not sure where their heads are at. Is it at all my place to tell them that though?

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  • Bettina F.
    Investor · Post Falls, ID · Member since 2016 · 606 posts · 699 votes
    9y

    No Art, it is not your place to tell them that.  I said that because I doubt they will be fostering for long.  But be alert for property damage and be aware that the agency should pay for damage directly caused by the foster children.  My special needs son went through a period where he loved to break windows when angry.

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