Unknowingly renting to illegal immigrants ......

Rental Property Investor · Midland, TX · Member since 2019 · 46 posts · 17 votes

Just wondering if there could be any issues with unknowingly renting to illegal immigrants. As a landlord, are we responsible for inquiring as to their citizenship? Could we get into trouble legally if we don’t?

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Melody Kushi

Princeton, NJ · Member since 2019 · 45 posts · 114 votes

@Sean Tippens as long as they pay the rent and take care of your property, I don’t see any issues. They are, after all, believe it or not, “patriotic” or not, human beings just like anyone else.

They need a place to live, a place to raise their children. And trust me, they will probably take care of the place more than the “citizens” of this county.

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Bob Daniels
Phoenix, AZ · Member since 2017 · 135 posts · 294 votes
6y
Originally posted by @Nathan Gesner:
that means the vast majority do not have a tax ID and do not file taxes and therefore represent a higher level of risk.
What exactly is the correlation between paying taxes, and paying rent? You seem to be under the impression that because people don't pay their taxes, that they won't pay their rent, or are at a higher risk to not pay. When the reality is likely that they represent a lower risk of not paying.
By their very nature, illegals tend to want to live a low profile lifestyle to not draw attention to themselves. There is a legitimate fear that by submitting information to the IRS and informing them that they have an ITIN, that they are alerting the government about their illegal status and therefore are drawing attention to themselves which is one reason why many people don't file.
If they fail to pay rent, they draw attention to themselves and they know that very quickly it will lead to evictions, and court proceedings which they will avoid at all cost because they know that their risk of being detected and deported rises dramatically in this scenario. As such I have never had anyone I suspected of being illegal pay late, not even a single day late.
You mentioned sex offenders, however sex offenders are a risk to other people around them, illegal immigrants are not inherently dangerous to anyone. It is for this reason that it is likely unwise to fill up your rental properties with sex offenders as it could create a dangerous neighborhood and the associate problems that come with it. There is no such problem with filling up your rentals with immigrants.

Of all of the responses in this thread, and the numerous other threads on this forum that talk about similar topics, there is one common element to all of the responses. And that is that people who are suspected of being illegal immigrants are often the best tenants that the landlord has ever had. So if hundreds of landlords are telling you that they are the best tenant ever and have nothing bad to say about them, then where exactly is the risk?

There is a certain amount of risk to renting to anyone, no matter how good your screening methods are there is still a chance that you get a bad apple. However from my experience, and the experience of others, illegals tend to make excellent tenants.

5 Reply
Lindel Turner
Investor · Jonesboro, AR · Member since 2017 · 136 posts · 79 votes
6y
@Matt R.
It seems like Arkansas has too however I have a couple. No issues
0 Reply
Leo Rodriguez
Rental Property Investor · Las Vegas, NV · Member since 2019 · 8 posts · 1 vote
6y
@Nathan G. If someone receives a tax refund from the IRS, is not because they didn't pay taxes, it's because they paid to much.
0 Reply
Erin ORourke
Member since 2019 · 1 post · 0 votes
6y
If an immigrant is undocumented it doesn't automatically mean their SSN is stolen or fake- they could have gotten it when they had a work visa and ended up overstaying.
0 Reply
Nathan Hall
Rental Property Investor · Martinsburg, WV · Member since 2017 · 111 posts · 81 votes
6y
@Sean Tippens I can't speak for others but we conduct background checks on prospective tenants; I'm sure it's possible but I imagine that the vast majority of times their need to provide SSNs to establish credit and criminal history might weed illegal immigrants/undocumented immigrants out. It's never been a question we've ever asked directly, though. I don't think it is a protected status in most locales but it is definitely an invitation to awkward, unnecessary conversation that would likely otherwise sort itself out.
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Jacobus Rex
Saint Cloud, MN · Member since 2017 · 38 posts · 5 votes
6y
@Joe Scaparra @Nathan Gesner
You're both right, as are others taking position on this issue. But really, do any greater principles other than 'Business' get any real consideration? We're a sad lot of people if that's all there is to it. I haven't the slightest doubt that the illegals are generally excellent tenants for the reasons mentioned; but also for the reason that they are honest people who don't feel entitled to anything. Is it really wrong and not tolerated for discussion if I say that, since I can't really identify that they're legal, and since illegal immigrants shouldn't be here, I can't and won't rent to them. For Pete's sake, they have broken our laws that help maintain and ordered entry into our country! Having said that, I will agree with everyone who said that you can find far worse tenants; there are a lot of low-life lying and 'entitled' people out there. . .they pass background and credit checks yet they cause you a ton of pain, including pocketbook pain. While I think it is wrong to rent to illegals, the alternative is often worse. A frustrating situation it is.
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Nathan Hall
Rental Property Investor · Martinsburg, WV · Member since 2017 · 111 posts · 81 votes
6y
@Matthew Olszak I understand what you're saying, and the logic, and I'm still a bit taken aback.
That's on me.
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Nathan Hall
Rental Property Investor · Martinsburg, WV · Member since 2017 · 111 posts · 81 votes
6y
@Shawn Coverdell what?
0 Reply
Jacobus Rex
Saint Cloud, MN · Member since 2017 · 38 posts · 5 votes
6y
@Leo Rodriguez
Leo! Where have you been? There are tens of millions of people who receive 'refunds' from the Federal government that greatly exceed any tax they've paid. Because they have children and make less than a certain amount, they essentially receive a transfer payment from the government to support their family.
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Jacobus Rex
Saint Cloud, MN · Member since 2017 · 38 posts · 5 votes
6y
@Bob Daniels

You make some powerful points. Seems though, it'd be actually nice if we would transcend the points on business sense to some higher principles than 'profit'. Yes, the illegals are far less risk than sex offenders. How about: "They're illegals and therefore I just can't rent to them." And you basically achieve that by @Nathan Hall method of diligent, strong application standards.
But who says you have to rent to a sex offender? I say those types should be pointed in the direction of some segregated public housing. . .which idea of course would probably be considered discriminatory to even suggest. But, in their case, they have absolutely brought that upon themselves. I know what I'm saying runs contrary to many local laws and ordinances. I don't think it runs contrary to common sense and a sense of justice, however.
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Joe Scaparra
Investor · Austin, TX · Member since 2013 · 662 posts · 1k+ votes
6y
@Jacobus Rex, Let's understand a reality.
1. There are MILLIONS of illegals in our country today BECAUSE our country allows it. Allowed because our country doesn't have the willingness to enforce our laws. If you're angry, as I am, look no further than our Political Leaders!!!! We should have secure borders but we don't.
2. I have absolutely no anger or angst toward individual illegals that come over here for a better life. Think about this, if you were in a sh**hole situation, and coming to America would significantly improve your life for you and your family, you absolutely would risk it as well. Don't dare tell me they should wait in line. There is no line for them to get into. They would not qualify to even get in line. No, I don't want them to come over here but YES my hat is off to those who recognize the opportunity. If you don't like the situation, don't blame them, BlAME YOUR STATE and NATIONAL REPRESENTATIVES, MAYORS, GOVENORS and PAST PRESIDENTS.
3. It is not wrong to rent to illegals, it is wrong to entice people to come break our laws because we don't have the will power to enforce our own laws.
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Bob Daniels
Phoenix, AZ · Member since 2017 · 135 posts · 294 votes
6y
@Jacobus Rex I own numerous rentals as a business, as such I treat it exactly like what it is: A business. While I have strong personal, religious, and political beliefs about many different topics, I never let those beliefs interfere with the way that I run my business. If we begin to transcend into some ethical realm, then where do we stop? Should I give discounted rent to elderly people on fixed incomes? Should I take pitty on single mothers? Should I provide free housing for homeless people? Should I not rent to people who are of a different faith then I am? It's Pandora's Box and I choose not to open it. If I want to help the homeless I will donate to a charity or volunteer at Habit for Humanity, but I will not alter my business model.
If you choose to not rent to illegals based on moral beliefs then that perfectly fine and that is your choice. Just remember that you must still comply with Fair Housing laws so if you ask one person to prove their citizenship, then you must make every single tenant prove their citizenship and you can not arbitrarily enforce it based on the color of their skin or their accent. However in the context of this thread the original poster asked if there could be any problems or issues with renting to illegal immigrants, and was not a question of a moral dilemma.
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Randy Gutierrez
Investor · NY · Member since 2019 · 171 posts · 80 votes
6y
I agree with Nathan that you should treat it like a business and assess your risk.

But this post by Joe is spot on.

I don't think citizenship is a criteria when determining who rents from you. But to each their own.

Originally posted by @Joe Scaparra:
Ok, some of you will like what I am about to say and some including @Nathan Gesner most certainly won't.

I guess because I rent to Illegal Immigrants, Nathan says I am an amateur. I own and manage 25 units consisting of duplexes and a 4plex. I have been doing this since 2003. Do I sound like an amateur?

Now, I am located in Texas and we have plenty of illegals here, most are hard-working individuals seeking out a better life.
My rents range from $800-$1250 per month. Most of my tenants are paycheck to paycheck. I don't check credit, why? I do check criminal and past rental history and the ability to pay etc. I personally meet all my tenants and approve or disapprove them. When I meet with illegals they still have ID and I check criminal history by name and birthday. My software doesn't even use social security numbers. Checking credit for lower-income individuals will just tell you that they have poor credit. Ok, I live with that.
Some of my illegals didn't have rental history. Lived with other family or friends before moving out on their own. This is where my personal one on one takes over. I am a hands-on landlord, and I enforce my rules and late payments. My gut is usually right. In Texas, there is no law against landlords renting to illegals.
Why I like renting to illegals. Because believe it or not they try and follow the law once here. They are afraid of the law and do not want to do anything that will highlight them which could lead to deportation. So, they pay their rent on time, they don't create a lot of noise and they take direction well. They can be messy in the kitchen as they cook with a lot of grease, and they don't have a lot of Air Conditioning knowledge so filter changing has to be emphasized. My one biggest issue is that some tend to bring in other family or friends in with them to live. I make sure I cover what is acceptable in terms of people allowed to live in their unit.
Over the last 16 years of managing my properties, illegals have given me the least amount of issues. Most of my illegals work in construction, appliance repair, or restaurant/hotel help. I get to know my tenants on a personal basis and I give out Christmas gifts to all my tenants each year. Most of my tenants are long term (like 3 to 7 years long) and I like that. So say what you want but all my units are occupied and my turnover is VERY LOW.
Lastly, If I have hard-working people, who have the ability to pay, I care not where they come from!!!!! Cheers.

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Pat L.
Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
6y
A fellow investor has a duplex in a C-class area & 6 mailboxes appeared so to avoid a conflict I told him to ask for mailbox rental :)
BUT up here in NYC calling someone an 'illegal alien' can be construed as a hate crime & you cannot deny housing per se ???
(CNN) New York City has banned the term "illegal alien" when used "with intent to demean, humiliate or harass a person," the city said.

The city's new guidelines, announced last week, also ban discrimination against someone based on their English proficiency and threats to call immigration authorities on someone "based on a discriminatory motive." These violations can result in fines up to $250,000.The guidance is for all public accommodations, employment and housing, the city's Commission on Human Rights said.
0 Reply
Jeff Ronningen
Investor · Cincinnati, OH · Member since 2015 · 242 posts · 182 votes
6y
@Nathan G. Just because a person can produce an ID, such as a driver’s license or social security number, doesn’t mean they’re in the country legally. This type of identification can be acquired quickly and relatively cheaply by someone in the country without legal status.
However I agree that identification should be required as part of screening for every potential tenant.
0 Reply
Jay Bob
New York, NY · Member since 2019 · 65 posts · 15 votes
6y
@Sean Tippens
I will not worry about anything if they are paying on time.
1 Reply
Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
6y
@Jeff Ronningen when I screen someone, I run a credit/criminal and match that to their picture ID. I'm calling their employer and references, talking to former Landlords. if someone wants to put that much effort into it, I suppose they could get past me. I don't know why they would try when there are so many private landlords that don't even run background checks
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Jaime Quezada
Member since 2019 · 1 post · 0 votes
6y
@Melody Kushi
I love your answer. I could have not said any better. We are all humans.
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Sean Tippens
OP
Rental Property Investor · Midland, TX · Member since 2019 · 46 posts · 17 votes
6y
@Steve Orluski , this is also why we asked this question . Some landlords I’ve have recently met seem to rather have illegal immigrants as tenants. Majority in this area are here to work hard keep their head down and chase the American dream while working on obtaining their citizenship. @Steve Orluski just a heads up, calling someone an illegal alien is no longer PC and or you can even be charged with a hate crime in some states my friend.
0 Reply
Guifre Mora
Lender · San Diego, CA · Member since 2019 · 874 posts · 355 votes
6y
@Nathan G. That is not true the IRS does not qualify who gets a the number.
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Guifre Mora
Lender · San Diego, CA · Member since 2019 · 874 posts · 355 votes
6y
@Sean Tippens you can’t disqualify a tenant for being a foreigner and you cannot ask if they are in the country legally or not. There could be legal action against you for doing so.
You should be reading this instead
https://www.equalhousing.org/wp-content/uploads/2014/09/2012-Immigration-Status-FAQ.pdf
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Anthony GaydenPro Member
Rental Property Investor · Omaha, NE · Member since 2014 · 2k+ posts · 3k+ votes
6y
Originally posted by @Courtney Shane:
Originally posted by @Anthony Gayden:
Originally posted by @Courtney Shane:
Originally posted by @Sean Tippens:
@Courtney Shane ITINs ?

Yes, people who are immigrants illegal or legal will receive an ITIN which is like a Social security number but they do not qualify to get a social. Their credit can be checked with an ITIN and they use it to work and pay taxes.

That is incorrect. Legal immigrants do not receive an ITIN. Legal immigrants are able to work in the US legally and eligible to receive a social security card and benefits.
You are incorrect. My husband is an immigrant and I have friends that are both legal and illegal.

You are wrong.

Being an immigrant does not make you an expert on US immigration. I am 100% certain that legal immigrants do not need an ITIN.
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Ilcar Rosario
Member since 2019 · 20 posts · 8 votes
6y
@Sean Tippens be careful be illegal is just a status. Could be a discrimination if you denied there application just base on legal status. Trust me the best tenants you can have is thous one without legal status in order because they stay longer in your unit. Your biggest expense as a landlord is have unit vacant.
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Sean Tippens
OP
Rental Property Investor · Midland, TX · Member since 2019 · 46 posts · 17 votes
6y
@Guifre Mora thank you . Very much needed . A few of my landlord friends would rather have “illegal immigrants “ as tenants because it’s simply easier to manage without using an PM company. This business model raised a lot of questions and curiosity . Why not bring it to BiggerPockets! Thanks for the feedback.
2 Reply
Ola Dantis
Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
6y
@Sean Tippens
As an immigrant and now U.S. Citizen (let's just slip that in there), it is fascinating to read many comments here...
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