Criminal Records and Landlording

[Michael Temple]

I was reading this article on the site...

https://www.biggerpockets.com/renewsblog/advanced-...

It says that a new HUD ruling says landlords can't have a blanket discrimination policy against people with a criminal record. The article makes a link to an NPR interview that essentially says you can't have a blanket policy, but says you won't always be sued if you consider a criminal record in your decision making. Of course, it doesn't say where that fine line is at.

OK, as with most bureaucratic stuff from the government I am confused. Are we allowed to screen out people with a criminal record or not?  In the article, he seems to suggest that landlords can, but just can't have a blanket policy. OK, so as long as I don't have a written policy that says I will never rent to a convict, but what am I allowed to screen them out on. He doesn't seem to give a definitive list of what is acceptable criminal behavior and what is not. This just smells like a HUD trap, where they are really vague about this so that they can essentially nail a landlord if they want to, but as the landlord, you don't really know when you are breaking the law. Anybody have any insight on this because I do run a criminal background check and I am trying to figure out if I am even allowed to use the thing.

[Jon Holdman]

Originally posted by @Thomas S.:

My personal investment philosophy is ...always screen based on your own personal standards. You must choose applicants based on protecting your investment other tenants and neighbours. 

Many landlords are afraid to screen to their own standards but the fact is a landlord can legally reject any applicant they choose even when their own personal reason for rejecting is not necessarily to the letter of the law. Protecting investments requires creative management.

There is never any reason for smart investors to fear managing as they see fit. This often requires bending , stretching and sometimes finding legal ways of breaking rules in place as the result of misguided government interference.

You're in some very dangerous territory there.  If your "personal standards" are inconsistent with fair housing, just claiming "I've rejected them for a personal reason" is not going to fly.  If you have a pattern of rejecting some protected group for "personal standards" you're playing with fire.