Section 8 applicant mentally unstable?

Question

Recently have a 1 Bdrm apartment become vacant. A gentleman (let's call him Bob) called me and asked me if I took section 8; after which he launched into speech of needing to run for mayor, getting involved with gun control, earning his 3rd degree and fighting for the whales. I said I didn't know anything about it and I'd have to look into it. He then gave me his social workers phone number and his FB address as his resume. Never had a chance to call the social worker. The next morning the social worker called me! Bob is indeed on section 8 and "yes" in the State of Oregon landlords cannot discriminate against a section 8 applicant. This all happened yesterday. This morning I looked up his FB account and I KNOW THIS GUY!!! We live in a small town where I ran a market for several years and he was always in and out of the store ranting on about something for hours, sometimes wearing a dress, sometimes dressed as a rainbow or a native Indian (you just never knew). Bob can be described as someone extremely intelligent but unable to keep his intelligence on topic. Bottom line is this, am I legally obligated to process this guys application? If he qualifies am I legally obligated to rent to him? I really get that good people need a chance for affordable housing (my daughter's husband died leaving her with three children and I couldn't get qualified her for section 8).

Bottom line though is this; if an applicant goes through the application process, as landlords, are we legally bound to rent to someone who we know is mentally unstable? If you meet this guy you have a feeling he could go postal at any moment and he would not be above pounding on my other tenants door at 3:00 am to tell them he had a message from Jesus! Sorry, I think I'm ranting a bit. My husband and I have worked our asses off for the little bit of a nest egg we have and now I feel like every time I have a vacancy I run the risk of someone destroying my property, or getting sued by that one person that works the system.

Advice?

Bottom line though is this; if an applicant goes through the application process, as landlords, are we legally bound to rent to someone who we know is mentally unstable?  If you meet this guy you have a feeling he could go postal at any moment and he would not be above pounding on my other tenants door at 3:00 am to tell them he had a message from Jesus!  Sorry, I think I'm ranting a bit.  My husband and I have worked our asses off for the little bit of a nest egg we have and now I feel like every time I have a vacancy I run the risk of someone destroying my property, or getting sued by that one person that works the system.

Advice?

Dennis M. · Answer

Who knows Maybe he is an indigenous native Indian from the same tribe as Elizabeth Warren. Look If you rent to every insane maniac wearing a rainbow dress that applies your going to be bankrupt  in short order . I would find a way to make sure his application ends up in the circular filing cabinet under my desk!

So the state says you must rent to the first loser with a section 8 voucher or a few hundred bucks in his back pocket ? Is the state going to bail you out when you can’t collect any rent and the bills are stacking up ? You need to safeguard your business because if you don’t no one will do that for you . As a wise industrious business owner you must find ways to mitigate loss and often that involves intensive screening . Screening is your best hedge of protection against loss in this business . Your gut plays a huge part in that .

Erik W. · Answer

You need to revamp your application and add "cooperative" to the list.

We required Govt issued photo ID, pay-stubs, and our application filled out online,completely, without blanks and with sufficient, accurate info to contact all references.  You have not been provided that.  FB address fails the cooperative test.  As of today, I would argue you have nothing to process.  Send him a copy of your application and odds are you'll never hear from him again.

I also don't talk to social workers.  Legally appointed Financial Power of Attorney or Court appointed Guardian?  Yes.

Don't make it about the Section 8 subsidy.  Don't make it about any disability: real or perceived.  Make it ALL about the applicant must follow YOUR application procedure and must satisfy YOU that he/she will be a good renter.  Good renters are cooperative and present a positive image.  I DQ'd a guy one time for having pictures of him doing keg stands on his page.

Nathan Gesner · Answer

You are obligated to process his application because everyone should be treated equally. So process it. If he's a bad renter, you'll find evidence of that during your application process, he won't qualify, and you won't have to rent to him.

But what if he's a good tenant? What if he's nuttier than squirrel poop but keeps a pretty clean home and pays his bills on time?

Your goal is to find someone that pays rent on time, takes care of the home, and doesn't make your life miserable. If he can meet your standards, rent to him. If not, you don't.

Patti Robertson · Answer

Irregardless of SEC 8, you cannot discriminate against anyone with a disability, period!  We work with HUD VASH in our market (disabled Vets), who mostly have PTSD issues.  I know from experience they are better off living in isolated scenarios - single families - than in apartments surrounded by lots of people and noises.  There is nothing, absolutely nothing, I can do or say about that if they inquire or apply.  For me to do so would be illegal.  It is heart breaking to be required to allow things to happen that you know are going to create a scenario that will result in a huge failure for the applicant and a financial mess for you (it’s not if, but when), but that’s exactly what you need to do unless you want to end up with hundreds of thousands of dollars in legal bills and fines for fair housing violations. From what you have described, it doesn’t sound like you guys is harmful, but he will drive your other tenants bonkers.  I had a disabled Vet once to had every other person in our 4 plex and both single family occupants on either side of our building get restraining orders against him. He was paranoid and every time he heard a loud noise or thought someone looked at him cross eyed, he would threaten them. His VA caseworker was at his whits end, and so was I because we had already turned the entire building except his unit because the other tenants could not stand living near him.  They were literally afraid he was going to hurt them.  Once he went to jail he stopped making his payments an we evicted him for the small amount of money he owed us. He ended up losing his voucher.  He kept his apartment in immaculate condition.  Other than when he was in jail, his rent was always paid on-time.

Not to get political here, but Trump recently said one of our housing issues is that all of our state mental health facilities have gone away.  He Is absolutely right. People like the two described here need more help than giving them a place to Iive can accomplish.  Landlords are between a rock and a hard place sometimes.

John Warren · Answer

@Nina B. Cook County, IL where I live and invest has the same rules that don't allow you to discriminate against section 8 as an income source. They do, however, have to meet our minimum criteria. In most cases, the section 8 applicants do not tend to be able to pass the minimum criteria I set. Most of these folks do not have good credit, and I don't end up renting to section 8 because of my credit requirements. If you have a bad feeling about this guy, I wouldn't rent to him.