Special tenants for higher rent

Nashville, Tennessee
Tenant Screening
1yFollow

Special tenants for higher rent

Rick Im
Member since 2023 · 24 posts · 11 votes

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

1Reply
52 views

Most Popular Reply

Dominic Mazzarella
Investor · Hendersonville, NC · Member since 2016 · 498 posts · 285 votes
1y
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. 

1Reply
See this reply in the discussion

4 Replies

Jump to latestLatest
  • Dominic Mazzarella
    Investor · Hendersonville, NC · Member since 2016 · 498 posts · 285 votes
    1y
    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. 

    1Reply
  • Tony Christian
    Real Estate Consultant · Ft. Lauderdale, FL · Member since 2012 · 42 posts · 40 votes
    1y

    Hey Rick — appreciate you posting this. I've run into some tricky tenant situations before too, and you're smart to think this through ahead of time.

    Here’s how I’d look at it:

    Fair Housing & Rent Adjustment

    I'd be real careful here. Charging extra rent because the caregiver’s housing adults with disabilities could end up looking like discrimination — even if your intent is just to manage risk.

    In Fair Housing terms, disability is a protected class. So even though you're not screening them directly, if you raise the rent based on who they are (and not some kind of general policy), that might raise flags.

    Instead, maybe frame it around occupancy-based pricing — more adults = more wear and tear, more utilities, etc. Something like:

    “Our rent scales with the number of adult occupants, to reflect usage and property impact.”

    Just make sure that same rule would apply to any group of adults, not just this specific situation.

    Legal Risk & Liability

    If those three individuals aren’t on the lease, it does open you up a bit:

    You can’t enforce lease terms against them directly.

    If something goes wrong — injury, damage, etc. — your liability coverage might get murky.

    You might also bump into local zoning or occupancy restrictions, depending on your town.

    What you can do:

    Add a clause in the lease that limits total adult occupants.

    Ask the caregiver’s agency to provide something in writing — maybe a letter confirming they’re licensed and insured, and that this is a formal care arrangement.

    Spell out in the lease that the caregiver's responsible for all occupants, even if they’re not on the lease.

    Also might be worth double-checking your insurance — make sure you’re covered for this kind of setup.

    Would I Rent to Them?

    Maybe — depends on how much you wanna take on.

    If you get everything in writing and feel comfortable with the caregiver’s credibility (and the agency’s), this might actually turn out to be a long-term, stable situation. People in care settings often stay put for years.

    But if the complexity makes you nervous, it's totally fair to hold out for a more straightforward applicant. Peace of mind counts too.

    1Reply
  • Rick Im
    OP
    Member since 2023 · 24 posts · 11 votes
    1y

    Hello Tony,

    My initial reasoning was that, although the applicant claimed she planned to live with three other individuals with disabilities, she was unable to provide documentation to verify this. However, as you suggested, I’ve decided to err on the side of caution and look for a more straightforward tenant. I truly appreciate you taking the time to educate me on this matter.

    Rick
     

    1Reply
    • Tony Christian
      Real Estate Consultant · Ft. Lauderdale, FL · Member since 2012 · 42 posts · 40 votes
      1y
      Quote from @Rick Im:

      Hello Tony,

      My initial reasoning was that, although the applicant claimed she planned to live with three other individuals with disabilities, she was unable to provide documentation to verify this. However, as you suggested, I’ve decided to err on the side of caution and look for a more straightforward tenant. I truly appreciate you taking the time to educate me on this matter.

      Rick
       


       My Pleasure, Rick. I think you've made the right choice. Risk reduction is an important factor when it comes to returns on your investment.

      0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free