Investor · Asheville, NC · Member since 2017 · 506 posts · 404 votes
I've had a tenant for nearly a year now and I love her. She keeps my place like a show home. My rent is high for the area ($1400). She is late with rent sometimes and I'm worried that she might move because it's too expensive. It took me 6 weeks to find her (because the rent is high--that's a long time in my area) so it probably won't rent quickly if she leaves, plus I doubt I'll find someone else who keeps the property like she does.
I want to offer her the opportunity to pay half rent at the beginning of the month and half mid-month, to accommodate her pay. I suggested this to a friend with a similar situation and it's working out great for them (nearly a year now). However, I mentioned this to a property manager today and she said this would violate the Fair Housing Act if I didn't offer this for all my tenants.
But no one else is ever late and it would be a headache to keep up with if everyone decided to do it, so I don't want to. What about if my tenant asked for the accommodation? Would this break the Fair Housing Act if I do it for everyone who asks? I could have someone suggest she ask, or is that a problem, too? It's a SFR and I don't own anything else in that neighborhood. If anyone cares, it's in Auburn, Alabama.
Do not offer it unless it is absolutely necessary, as in she is leaving if she can not get it. The fact is if she can not afford the rent splitting the payment will only prolong the inevitable. At best a stall tactic.
Since it is a SFH you should not bother being concerned about fair housing. If she is not already on M2M get her on it as soon as her lease ends. If things go bad you will want to get her out as quickly as possible. Being late with rent considering she has been a tenant for less that a year is a very bad sign. The writing is on the wall already.
Be extremely carful with your efforts to accommodate this tenant, it could become extremally expensive for you. Compassion cost money.
Rental Property Investor · Edmond, OK · Member since 2017 · 1k+ posts · 1k+ votes
7y
I'm interested to hear other's thoughts on this, but my thought is that it is preferential treatment if that's not an option for all of your tenants.
I know a few landlords that really like bi-weekly or weekly payment options. It may be a headache for your PM, but it could be something to consider. It makes keeping up with payments a little easier on tenants that are on a tight budget and the landlords actually get higher profit due to the extra payments.
(I'm not a fan of this method, but it does work for some people).
Do not offer it unless it is absolutely necessary, as in she is leaving if she can not get it. The fact is if she can not afford the rent splitting the payment will only prolong the inevitable. At best a stall tactic.
Since it is a SFH you should not bother being concerned about fair housing. If she is not already on M2M get her on it as soon as her lease ends. If things go bad you will want to get her out as quickly as possible. Being late with rent considering she has been a tenant for less that a year is a very bad sign. The writing is on the wall already.
Be extremely carful with your efforts to accommodate this tenant, it could become extremally expensive for you. Compassion cost money.
I want to offer her the opportunity to pay half rent at the beginning of the month and half mid-month, to accommodate her pay. I suggested this to a friend with a similar situation and it's working out great for them (nearly a year now). However, I mentioned this to a property manager today and she said this would violate the Fair Housing Act if I didn't offer this for all my tenants.
The PM is being overly cautious. Yes, it is recommended that you offer the exact same policies and procedures to all your tenants. That removes the possibility of discrimination based on illegal factors and protected classes. However, offering this to one tenant that is having difficulty paying and not offering it to everyone else that as far as you can tell are not having issues paying on time is not illegal discrimination. You have a clear legitimate reason for offering this to this one tenant.