Question on record keeping as the landlord

[Jessica Yuan]

Hey all, I'm currently reading "the book on rental property management" by Brandon and Heather Turner, and the chapter about Faire Housing Laws talks about keeping excellent record in the event a discrimination charge is brought up to you. 

Here's the quote from the book: 

"In the case of renting out your unit and speaking with potential tenants, keep notes of each contact you had with the potential tenant, including the date and time they occurred. If they apply for your rental, you will also want to keep records of your screening results and the reason behind whether or not they were approved. If they were denied, send them an Adverse Action Notice, and keep all the information you collected about that applicant should the need arise to prove no wrongdoing on your part. We have a file called 'Prospective Applicant', 'Denied Applicant', the same goes for current and past tenants.  During a tenant's tenancy, keep records of anything having to do with that tenant, such as phone calls, emails, letters, texts, complaints, notices, maintenance requests, repairs. Not only could it protect you in the event of a Fair Housing complaint, but accurate and detailed record keeping will also make your job as a landlord much easier". 

My fellow investors, when you use a management company or self-manage, is it a common practice to keep a file for every applicant and every tenant? and is it reasonable to require management company to keep all records as mentioned above, and provide if requested? 

[Drew Sygit]

Quote from @Jessica Yuan:

Hey all, I'm currently reading "the book on rental property management" by Brandon and Heather Turner, and the chapter about Faire Housing Laws talks about keeping excellent record in the event a discrimination charge is brought up to you. 

Here's the quote from the book: 

"In the case of renting out your unit and speaking with potential tenants, keep notes of each contact you had with the potential tenant, including the date and time they occurred. If they apply for your rental, you will also want to keep records of your screening results and the reason behind whether or not they were approved. If they were denied, send them an Adverse Action Notice, and keep all the information you collected about that applicant should the need arise to prove no wrongdoing on your part. We have a file called 'Prospective Applicant', 'Denied Applicant', the same goes for current and past tenants.  During a tenant's tenancy, keep records of anything having to do with that tenant, such as phone calls, emails, letters, texts, complaints, notices, maintenance requests, repairs. Not only could it protect you in the event of a Fair Housing complaint, but accurate and detailed record keeping will also make your job as a landlord much easier". 

My fellow investors, when you use a management company or self-manage, is it a common practice to keep a file for every applicant and every tenant? and is it reasonable to require management company to keep all records as mentioned above, and provide if requested? 

 How do you defend yourself against a Fair Housing lawsuit?

Majority are filed by HUD because attorneys don't see the profit in them.

You have to prove:

1) You didn't break any specific laws

2) You didn't indirectly discriminate and treated everyone the same

So, when an applicant, or a "tester" sent by HUD, files the lawsuit you will need data to show the above.

Where do you get that data?

From your records.

Unfortunately, when the government (HUD) gets involved, it's almost like you are guilty and you need to prove you're innocent.

So, be sure you fully understand the risks involved and let that dictate how much you choose to save.

BTW: this is not intended to be legal advice in any way, shape or form. Recommend you consult with an experienced Fair Housing attorney.