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Updated 8 days ago on . Most recent reply

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Rick Im
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24
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Special tenants for higher rent

Rick Im
Posted

I have a 4-bed, 3-bath single-family home available for rent. One prospective applicant is a professional caregiver responsible for three adults with intellectual disabilities. During the showing, she mentioned that her contract prohibits her from disclosing personal information about her clients, including their names and Social Security numbers.

I'm considering accepting her application but charging higher rent—for instance, an additional $200 per client—to account for the additional risk and lack of standard tenant screening information.

I'd appreciate input from the community on a few questions:

  1. Fair Housing & Rent Adjustment: My understanding is that adjusting the rent in this case is not considered discriminatory, since the applicant cannot provide essential screening information and I would be assuming greater risk as a landlord. Is this interpretation correct?

  2. Legal Risk & Liability: Since the three clients would not be listed on the lease, what legal risks or liabilities might I face if I allow them to reside in the home? Are there ways to mitigate these by adding special clause to the lease?

  3. Tenant Selection Strategy: Would you proceed with this arrangement, or would you prefer to wait for a more conventional applicant to avoid the complexities?

Thanks in advance for your insights.

Rick

Most Popular Reply

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277
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Dominic Mazzarella
  • Investor
  • Hendersonville, NC
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277
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Dominic Mazzarella
  • Investor
  • Hendersonville, NC
Replied
Quote from @Rick Im:

I have a 4-bed, 3-bath single-family home available for rent. One prospective applicant is a professional caregiver responsible for three adults with intellectual disabilities. During the showing, she mentioned that her contract prohibits her from disclosing personal information about her clients, including their names and Social Security numbers.

I'm considering accepting her application but charging higher rent—for instance, an additional $200 per client—to account for the additional risk and lack of standard tenant screening information.

I'd appreciate input from the community on a few questions:

  1. Fair Housing & Rent Adjustment: My understanding is that adjusting the rent in this case is not considered discriminatory, since the applicant cannot provide essential screening information and I would be assuming greater risk as a landlord. Is this interpretation correct?

  2. Legal Risk & Liability: Since the three clients would not be listed on the lease, what legal risks or liabilities might I face if I allow them to reside in the home? Are there ways to mitigate these by adding special clause to the lease?

  3. Tenant Selection Strategy: Would you proceed with this arrangement, or would you prefer to wait for a more conventional applicant to avoid the complexities?

Thanks in advance for your insights.

Rick


You should absolutely talk to a local attorney about this one. What your suggesting sounds like it could be illegal, but you’ll want professional advice before doing anything Iike that. 

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