When taking apps, write the date and the time that you got it. If you have more then one that qualify and you pick the first one and the second one happens to be of a minority group, you have proof regarding timing about filling out the app.
Follow the rules and don't discriminate on protected classes. Be very consistant in your process and stick to your guidelines. If someone ever says anything to me, I tale a step closer to them, look them in the eye and say in a convincing tone "I don't care if you're yellow, black, blue, green or red, a church goer or not, walking or not or what your personal issues are, your money should be as green as anyone elses and mine and that's all I'm in this business for is the money!" That usually shuts them up.
While some have pulled or played that card, they don't get far with it so long as you can back up your decission with reasonable requirements that were not met from your processing them in the same manner as all other tenants....it's then not an issue. Good luck
When taking apps, write the date and the time that you got it. If you have more then one that qualify and you pick the first one and the second one happens to be of a minority group, you have proof regarding timing about filling out the app.
3 or more is true, watch yourself as non-owner occupied, federally insured loans can throw you back in to compliance requirements. Sec 8 will also put you there.
To put your mind at rest on this issue, I have never had a letter or a call from an attorney arising out of discrimination issues and you'll need to get real busy to do more deals than I have.......follow the above advice and you'll be fine. For one property like that stop thinking about it and just be fair and consistent with people. Vinilla conventional financing is not an issue. Good luck
Just a thought .... Doesn't giving a special status, rights and privileges to a group of people (protected class) take rights and privileges away from non-protected class?
This is a good topic and one of the fundamental things to consider before accepting tenants. It could be very helpful if you prepare probing quesions list. It always helps to be nice and firm and straightforward when screening applicants/tenants. Other than that the criteria given by Loc R. are benchmarks that you should not miss out. =)
Just wanted to chime in and say that I love this topic - It seems to be one of the questions new investors like myself would come to bring up.
I'd be a little nervous myself to reject a tenant if they didn't appear to be responsible; so I always wondered how first-time investors would deal with being able to filter their tenants responsibly.
Myself, I'd have to learn not to be overly picky though and risk passing up someone who will become a long-term tenant!
Hi John -- Glad that you are aware of your Fair Housing obligations and asking questions. Although I am now a full time investor I spent 20 years as a civil rights lawyer. The answers suggesting you make a system, process applications in the order received are all valuable. I have never rejected an application. When I have someone who has been evicted or otherwise doesn't check out, I call them and tell them the problem. The typical answer is that a mistake has been made. I encourage them to fix the mistake and explain that I have to proceed to the next application but if they bring me proof that a mistake has been made and the property is still available, I will continue to process.
George -- Our civil rights laws are trying to create an equal playing field. The laws do not create special rights or privileges, the laws try to ensure that a protected class gets the same rights or privileges as others. Hopefully, you realize that every person falls within a protected class. A white person trying to rent who is treated differently because of his or her race has a claim.