Question on record keeping as the landlord

Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes

9mo

I'm not sure the important parts of Fair Housing compliance were in that passage. Just because you noted that someone called or sent an email provides no protection against Fair Housing. With Fair Housing the important issue is that you behave in a way that is compliant with the law. Only then does record keeping become important.

Most property management systems track the sorts of items you were referring to.

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Drew SygitBusiness Member

Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes

9mo

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.

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Lydia Winn

Member since 2025 · 91 posts · 55 votes

9mo

@Drew Sygit this is a terrific answer and accurately conveys the importance of record keeping.

I would emphasize that HUD is not only looking at the reason you rejected one person, but those reasons were applied equally to similar candidates. So it's not enough to keep records of why you rejected someone at any given time, you need to apply those rules to everyone, equally.

Fair housing testing often uses the matched pair. They don't just send one person; they send two. If you tell one applicant, "Your income is too low for this unit," but you tell someone else (often a non-minority applicant), "We can probably make this work since you have a steady job," you have just provided evidence of disparate treatment.

Also, make sure you understand what constitutes a protected class. A common mistake is not knowing that income source is protected. If you immediately hang up or say "We don't take Section 8" before evaluating someone, you’ve failed the test.

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Jade Miali EverettBusiness Member

Real Estate Consultant · Sebastopol, CA · Member since 2017 · 41 posts · 17 votes

8mo

Brandon Turner is always a great read and a great resource to have around as you develop in this industry.

This excerpt took me back to my student housing days and if you know anything about the industry, the A-class properties are ran like machines with some of the best training being offered to their teams. The 1,000+ bed assets are a different breed and once you have that many residents, you certainly begin to forget details. It's not that a resident just becomes a number, rather that you can only retain so many interactions had in a day.

Fair Housing is the main point that comes to mind, but I also think that a separate point that Brandon is making is to get in the habit of documenting everything. In the old days, every lease file had a resident communication log. You'd put the date, the interaction and your initials. Today we have software that lets us log an activity on the resident's profile but either way, it is best industry practice to be in the habit of making thorough notes pertaining to interactions with residents. One thing that is discussed today may not be a problem but six months from now facts and conversations can get twisted and having the receipts will always play to your favor.

It could be something as simple as a lawsuit that arose from some belongings that were accidentally discarded but you did discard them after the correct # of days that your lease says to wait but you didn't make a note with the date that they were discarded or take pictures, so now what will you do?

It's a tedious thing, but get in the habit of documenting everything. It's sadly a litigious industry and you should always operate from the land over cover yourself. It's a practice that is necessary.

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Jessica YuanPro Member
OP
New to Real Estate · San Francisco Bay Area, Columbus OH · Member since 2025 · 31 posts · 42 votes
8mo
Quote from @Jade Miali Everett:

Brandon Turner is always a great read and a great resource to have around as you develop in this industry.
This excerpt took me back to my student housing days and if you know anything about the industry, the A-class properties are ran like machines with some of the best training being offered to their teams. The 1,000+ bed assets are a different breed and once you have that many residents, you certainly begin to forget details. It's not that a resident just becomes a number, rather that you can only retain so many interactions had in a day.

Fair Housing is the main point that comes to mind, but I also think that a separate point that Brandon is making is to get in the habit of documenting everything. In the old days, every lease file had a resident communication log. You'd put the date, the interaction and your initials. Today we have software that lets us log an activity on the resident's profile but either way, it is best industry practice to be in the habit of making thorough notes pertaining to interactions with residents. One thing that is discussed today may not be a problem but six months from now facts and conversations can get twisted and having the receipts will always play to your favor.
It could be something as simple as a lawsuit that arose from some belongings that were accidentally discarded but you did discard them after the correct # of days that your lease says to wait but you didn't make a note with the date that they were discarded or take pictures, so now what will you do?
It's a tedious thing, but get in the habit of documenting everything. It's sadly a litigious industry and you should always operate from the land over cover yourself. It's a practice that is necessary.

Thank you so much Jade for your valuable input! :)
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Question on record keeping as the landlord

Question on record keeping as the landlord

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