Owner does not want to rent to roommates

Member since 2018 · 2 posts · 0 votes

Hello all! I'm a Realtor in Austin, TX and have had this come up a few times over the years. I'm wondering if it is legal for me (as the lease listing agent) to refuse applicants just because they are roommates. Would this be considered discriminatory? Are they a protected class? Thanks so much in advance.

0 Reply

32 views

Most Popular Reply

Jonathan GreeneBusiness Member

Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes

Roommates are not a protected class, but you have to be careful that your seller is not using "roommates" to discriminate against protected classes. What's the rationale on no roommates? You have to see if the applicants would qualify as a protected class and then decide if "roommates" is a sham way around that. But if it's just someone who only wants to rent to one person and not two, that is legal even if it doesn't make sense.

[email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro

Zen and the Art of Real Estate Investing59 Reviews

Website View Page

2 Reply

See this reply in the discussion

7 Replies

Jump to latestLatest

Sort by

Jordan MoorheadBusiness Member
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
6y
Why would they not want roommates? People are being responsible trying to reduce housing expenses and he may be more likely to get the rent.
[email protected]512-888-9122
The Moorhead Team5140 Reviews
Website View Page
0 Reply
Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
6y
Roommates are not a protected class, but you have to be careful that your seller is not using "roommates" to discriminate against protected classes. What's the rationale on no roommates? You have to see if the applicants would qualify as a protected class and then decide if "roommates" is a sham way around that. But if it's just someone who only wants to rent to one person and not two, that is legal even if it doesn't make sense.
[email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
Zen and the Art of Real Estate Investing59 Reviews
Website View Page
2 Reply
Douglas Snook
Attorney · Attleboro, MA · Member since 2015 · 412 posts · 165 votes
6y
If it is a two bedroom apartment are you looking for a family (adult and child)? Is it a one bedroom apartment? You need to provide some more info.
If it is a two bedroom why no room mates? What is a single person or a couple going to do with the extra bedroom? (I know they could use it as a home office or "study" but just saying in general)
If it is a single bedroom, what kind of "roommates" are they? If they are a couple of friends (or say two brothers) and one plans to sleep on the couch in the livingroom I think you can say no thanks.
Just some thoughts.
0 Reply
Kevin Sobilo
Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
6y
@Aimee Hamza, roommates are not a protected class. Some municipalities even restrict the number of unrelated people who can cohabitate in a single unit.

I also agree with @Jonathan Greene. It is important to not use this as a side door to discriminate against a protected class or even to appear that you are doing so.
1 Reply
Jerel Ehlert
Attorney · Austin, TX · Member since 2014 · 888 posts · 759 votes
6y
Legally shaky ground. Instances where restricting the number of unrelated persons have been limited by the US Supreme Court to 50+ communities or limited special purposes. Just because a municipality might have it on the books, it is void by SCOTUS ruling. Several owner's associations had restrictions based on race from the earl 1950's still on the books well into the 1990s-2000s.
Refusing to lease to "roommates" could be seen as discrimination based on marital status (protected class) or familial relation (protected class) or age (protected class). Even if not one of those, if the roommates are minorities, that could be the basis of a discrimination suit (protected class). National origin is also a protected class. So unless the proposed roommates are cis single white males, you will likely sign up for a discrimination suit if the truth comes out.
In other words, landlord should focus on what's important: finding a tenant(s) that will pay on time, in full, and not destroy the property. Anything else is irrelevant and likely to cause trouble for him/her/it.
1 Reply
John Chapman
Investor · Dallas, TX · Member since 2009 · 718 posts · 913 votes
6y
I get why, as a practical matter, your client doesn't want to rent to roommates. If he or she has been doing this for any length of time, then your client probably recognizes that the odds of them staying for an extended period of time is low. Roommates fight, dissolve their relationship, move on, etc. By its nature, a true roommate relationship is often intended to be temporary. Moreover, multiple payors just has more potential for headaches. All of that being said, as echoed above, I'd be careful about making that a disqualifying criteria. As @Jerel Ehlert says, I think you could set yourself up for a familial status/marital status claim of discrimination. (I"m not sure I'd go as far on the national origin/racial stuff, but in this world, who knows?) Bottom line, don't disqualify them automatically for it.

0 Reply
Jim Cummings
Residential Real Estate Broker · College Station, TX · Member since 2013 · 1k+ posts · 969 votes
6y
@Aimee Hamza. Many choices and decisions included in the "Roommate" Question.
As a Licensed Agent, it's not your decision on accepting applications. You can inform the applicants, Landlord is not interested in renting to multi unrelated occupants, but final decision is up to the Owner / Landlord.
As for financial qualifying, a formula in common use is requiring any 2 of the potential applicants to meet the Financial Qualifying Criteria. For Example: 3 Tenants: A, B & C. A + B - must meet or exceed Financial Qualifying Criteria, A + C  -
must meet or exceed Financial Qualifying Criteria. And B + C - must meet or exceed Financial Qualifying Criteria.


1 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.