How would you handle this?

Question

I had a group come by this morning to look at a house. They were very normal, polite and no alarm bells went off.
After they left there was a knock on the door a couple of minutes later and it was the husband/boyfriend to tell me he has a felony conviction for marijuana from 3 years ago, but "it's being expunged".

I was caught completely off guard. I told them that if everything else checked out okay (rental, etc.) it might be alright. Now I don't know if I should have done that. They haven't applied yet--they were going to bring the apps & fees tomorrow. Do you think I should go ahead and take their applications or call them and let them know that they can apply but it's going to be an issue after all?

Sharad M. · Answer

Bienes,

I would be careful about setting my screening criteria and sticking wihh it for all the applicants for all your properties. If you end up accepting this tenant and later in the future reject one for drug felony then you can get into trouble.

What i have done is i have a written set of screening criteria and i go through them with each applicant just to avoid any discrimation issues.

J Scott · Answer

A couple things to think about:

- While all criminal behavior is bad, there are degrees.  What was the specific offense?  Dealing?  Possession?  Growing?  I would treat each differently, though you're certainly correct to be concerned.

- Why do you think he confessed this?  Did you say you were planning to do a criminal background check?  Or do you think he was trying to do the right thing, just in case you did.  If you didn't mention a criminal background check, I'd give him credit for admitting it upfront, though it sounds like the others may not know, so he's just trying to keep from letting his secret out;

- All-in-all, if it was a conviction for dealing drugs or manufacturing/growing drugs, I wouldn't be overly concerned, but if you have other qualified tenants that seem just as good, it could push you in the other direction.

Bienes Raices · Answer

^ I am pretty uneasy about this situation, I think I'm going to pass on these people. I got involved with this to make money, not to give second chances to people I don't know from a hole in the wall. Besides, I only started showing this property 2 days, why should I have to settle for this so early? Although I guess if they call back I need to find out if the case is still pending, to be safe...

Joel Owens · Answer

Pending equals not guilty yet so I can see that.

The damage a grow op can do to a property is amazing.I watched some Mike Holmes episodes and some law enforcement videos and the damage is huge.

How strong of a renter are they?? In other words do they have a big security deposit to put down??

Many things can be mitigated with enough down to compensate for the risk.

Think about car insurance companies.They still insure people with tickets,DUI's,etc. the rate is just much higher.

So you wouldn't let someone high risk have a low to no deposit.

"They were very normal, polite and no alarm bells went off. "

That doesn't mean anything.Just like when 2 people start dating they show just the better side of themselves.Later is when all the problems surface.

This is why credit and criminal is so important as you get information from a non-biased source on their history.If the credit report show job stability that can be a plus as well.

You have to make the tenant have skin in the game so they behave themselves and get their deposit back.

If they don't have a big deposit and first and lasts I would move on.

Jeffrey K. · Answer

Our state does not let you discriminate on pending charges.

Bienes Raices · Answer

Thanks for the thoughtful responses...I guess there is no clear cut answer to how to handle this...(welcome to landlording  :roll:)

Maybe I'm overthinking things, but my concern is not so much these individuals, as the fact that I may be opening the door to having to accept other people with felonies who aren't so great, in the future, if I apply my criteria fairly.

For example, I had a feeling that the group that came in to see the house an hour before the marijuana people would be disastrous because of the manner in which they filled out the application. When I checked the guy's criminal, there was a DWI from four years ago, + a felony witness tampering charge and a simple assault charge from many years earlier. Now, as it turns out, their rental history isn't verifiable either, so I can reject based on that. But I'm not sure I just want to open the door to take anyone with a recent felony either.

Rob Gillespie · Answer

I would not be completely alarmed in disregard the people over something like this. I know a lot of good people that have made bad decisions in their lives. The big question is how much trouble has this individual been in before and after the marijuana conviction?I know you're not supposed to take age into consideration on a rental application, but I would be much more lenient with a 22-year-old guy when he had this problem when he was in his teens versus a middle-aged guy that is participating in these type of shenanigans!

If everything else checks out okay such as past rental history, job history, and other criminal records, then it was probably just a bump in his road and I was overlooked it. Just my opinion. Best of luck!

Bill Gulley · Answer

Yep, you're right, so only a couple years, I'd have to say sorry!

IMO, it takes longer than a couple years to ensure drug problems are really behind them and that they have really gotten rid of the crowd they hung with. The friends being there can also be a problem, so make sure the dealer types and cooks aren't hanging around! Good luck

Bienes Raices · Answer

He said it was a felony, so it has to be either dealing or possession of more than an ounce.

Bill Gulley · Answer

As Justin mentioned, at least he was honest, but he may have also known (through his probation officer or others) that he would be subject of discrimination in rentals and it could be that not disclosing his "status" could be another viloation of state law, don't know, if you are under Section 8, it would be.

You can discriminate based on any past drug related conviction, no matter what it was, unless your state law addresses this differently, but doubt it. But you can also give them a break too (if it's not Sec. 8) and rent it, that's your call.

IMO, if it was using THC, I'd laugh, if it was manufacturing and distribution and it was only a couple years ago, I'd have to say, sorry!

How would you handle this?

Most Popular Reply