I have a situation that i would love some inputs for....

I have a 2/1 in SF and I have an application from 3 youngish late 20 professionals...I dont really want to rent to them because I prefer 2 occupants... But my PM told me if I reject them, it is going to be a discrimination...

Is it?

Thank you..

Hi Diane, You can't reject a tenant based on any fair housing issues. However, if there is another reason to reject them ie: not grossing enough, credit score, bankruptcy, poor rental references, etc then age is no longer the reason. 

@Jenni Utz - thank you for your input... I appreciate it..

In my case, I was not wanting to reject them because of their age... Age is a discrimination..

I do not want to rent to them because they are a group of 3... I only want 2 people in that condo... Would this be a discrimination? meaning decriminating against a group of 3?  

@Diane G. check on your local laws. Is there a limit to the number of people in a unit per square footage or based on # of bedrooms? If so, you can deny them. If not, and they qualify, I am not sure why it would matter. 

@Jenni Utz - Maybe I am too weird for not wanting to rent to 3... Lol

SF law says 2 people per bedroom MAX... So technically, 3 would be fine... However, I dont see how 3 people are going to share 1 bathroom????

Originally posted by @Diane G. :

@Jenni Utz - Maybe I am too weird for not wanting to rent to 3... Lol

SF law says 2 people per bedroom MAX... So technically, 3 would be fine... However, I dont see how 3 people are going to share 1 bathroom????

 Is there a specific reason you don't want three renters?  If anything, it costs them all less money and they will be more easily able to come up with the rent.  Either way, I stumbled on a fantastic, comprehensive post on the subject of tenant screening that will provide you with a lot of information.  

https://www.biggerpockets.com/blog/2013-01-27-tenant-screening

Edit:  I just saw that they are young, 20 year old up and coming professionals.  They are probably just trying to save some cash and live with their friends to take the step into adulthood together.  I'd go for it if everything else checks out.

@Diane G. Housing law says 2 occupants per legal bedroom. You could argue that you are concerned about overcrowding with Coronavirus especially in a smaller property; but you would be on shaky ground. All the best!

@Bjorn Ahlblad - care to elaborate?  How am I on shaky ground, which is what PM is saying, by the way...

I am not rejecting on race, or age, or any of those things....What law did I break?

@Diane G.  A LL can set the number of tenants per property; but can't be below 2 people per legal bedroom. You could argue about the size etc; but it would not hold up. I am not a lawyer nor do I work for any housing authority just my interpretation of Fair Housing; Federal and CA. It is up to you. Keep us posted on what you decide.🤓

@Bjorn Ahlblad - OK

I was not trying arguing with you... My PM said the exact same thing... I was simply confused over what law did I break by NOT wanting to rent to 3 people?  I asked my PM that exact same question, and she can't answer either... Lol

Originally posted by @Diane G. :

@Bjorn Ahlblad - care to elaborate?  How am I on shaky ground, which is what PM is saying, by the way...

I am not rejecting on race, or age, or any of those things....What law did I break?

 Would rent to a couple that had a child, which would also be 3 people? If so, then you may be discriminating based on familial status. If you wouldn't rent to 3 people under any circumstances, then I'm not sure what the issue is.

@Diane G. I don’t think it’s a legal issue per se, however I do believe that choosing to accept or deny applicants based on ANYTHING other than their background/application criteria is a slippery slope. When we provide our owners with applicants, we don’t even give additional information. They should only be making decisions based on pertinent information. If you look to scale your investment portfolio, having these types of rules for # of occupants will be a hinderance. 

Be sure that you are not violating your condo association rules also.  The size of the bedrooms can make a difference if they are exceptionally small or large it can affect the number that would be reasonable.

Thank you to ALL of you for care to spend the time to share your thoughts...

I was not trying argue with anyone, just simply trying to get educated...

How are 3 people going to share 1 bathroom?  Seriously?

it is a 2/1 with 1100 sq ft....

Originally posted by @Diane G. :

Thank you to ALL of you for care to spend the time to share your thoughts...

I was not trying argue with anyone, just simply trying to get educated...

How are 3 people going to share 1 bathroom?  Seriously?

There are worse sacrifices people make when they don't have any money. A couple shouting matches before work every Monday and they'll be all set

Originally posted by @Diane G. :

How are 3 people going to share 1 bathroom?  Seriously?

This is very common. Think of college dorms, military housing and other odd structures. I've been at friends houses who have 3 people to a bathroom. Ive shared one large bathroom, 3 sinks 2 toilets 2 showers, with 16 other men for months at a time while I was on a military ship. 

It's really not that big of a deal. 

Originally posted by @Diane G. :

Thank you to ALL of you for care to spend the time to share your thoughts...

I was not trying argue with anyone, just simply trying to get educated...

How are 3 people going to share 1 bathroom?  Seriously?

 Are you joking with the bathroom comment, or can you really not imagine 3 people sharing 1 bathroom? I grew up in a family of 6 in a 3 bed 1 bath home. I'm certainly not alone in this either. There are tons of 3/1 homes that are rented to families of 4+. We have several 4/1's here in San Antonio, and some very large families rent them. You have to realize that a lot of tenants can't afford to live they way that you might be able to.

@Diane G. When I was a college student living in a dorm, I had three roommates in my with another 3-roommates across the hallway. The bathroom for all 6 of us was in the middle. It was fine. We survived :-) I was just happy to live affordably.

@Diane G.  

From a federal fair housing standpoint, you are within your rights to allow no more than two un-related adults. I limit to two unrelated adults for even three or four bedroom houses. Federal Fair housing for familial status only applies when children are involved. 

San Francisco goes quite a bit further with their fair housing to include many other things. I don't see roommates as part of this either, but I would trust the PM. Ultimately it is SF and logic doesn't apply there.

S.F., Cal., Police Code § 3304
Actual or perceived race, color, ancestry, national origin, place of birth, sex, age, religion, creed, disability, sexual orientation, gender identity, source of income, weight, or height 

S.F. Cal., Rent Ordinance § 37.10B(a)(9)
Actual or perceived race, gender, sexual preference, sexual orientation, ethnic background, nationality, place of birth, immigration or citizenship status, religion, age, parenthood, marriage, pregnancy, disability, AIDS or occupancy by a minor child

@Diane G.

Can’t tell if your bathroom comment is supposed to be funny or not. I can think of 4 separate groups of friends that live in SF. Each lives in a 3bd/1ba or 2bd/1ba with converted living room. Par for the course...

@Diane G. three people to one bedroom isn't that bad. In a lot of military barracks there are 4 people sharing one bathroom. I assure you that if they are willing to do it, they will make do just fine. 

Honestly, if they appear to be good tenants on background information I vote you rent to them. Three tenants means your odds of them missing payments drop. Given the current environment, I would welcome financially savvy youngsters who are trying to save money by living together.

@Diane G.

It is

Originally posted by @Diane G. :

Thank you to ALL of you for care to spend the time to share your thoughts...

I was not trying argue with anyone, just simply trying to get educated...

How are 3 people going to share 1 bathroom?  Seriously?

Seriously? So were u born rich? Ever heard of a dorm? Ever heard of being young or in college?