How to limit showings without violating Fair Housing?

Question

Hi guys, I have a problem. Somehow on all of my rentals I have tons of people who are interested in renting. So its really time consuming and stressful to show my property to everybody who wants to see it.

Can I deny a showing to a person without violating Fair Housing act?

I know we can legally deny renting to a person if the income does not meet my requirements,  no longevity on a job/previous rental, etc... But can I legally deny to SHOW my rental based on their income not meeting my requirements?

(Obviously I can not say that I am not going to show you because you have too many kids, or I dont like your accent/race etc)

But can I say: "I can not show you my rental because you dont make the minimum requirement?" or "Because you have not been on the job for a long time" or "Because you have not lived in your previous apartment for a certain period of time"?

How do you guys refuse to show your property to somebody?

Thank you!

Nathan Gesner · Answer

@Mary Jay you should be "pre-screening" all interested parties. It's a technique of building a funnel and eliminating the masses so that you're only showing the rental to people that can actually qualify.

For example, I'm renting a single-family home for $1,500 a month. It allows dogs but not cats. It only has two bedrooms. If someone calls to ask about it, I give them a quick "pre-qual" list:

"Yes, that property is still available. It will accept one small dog under 30 pounds, no cats or smokers. The rent is $1,500 a month plus utilities so we need proof your income is 3x that amount, $4,500 or higher. Our application process includes a full credit/criminal background check and we will be screening any pet, as well."

If they have a cat, they are eliminated. If they don't want us running a credit/criminal, they will walk. If they only make $3,000 a month, they will walk.

I started in property management 10 years ago. I would advertise a rental and get 20 - 30 calls or walk-ins before it rented. The vast majority of those people never came back and applied, for whatever reason. As soon as I started using a credit/criminal screening process, my calls dropped to 1/4 what they used to be. I was nervous that I had lost all that business but what I quickly realized is that the majority of them didn't want to be screened because they knew they wouldn't qualify! My workload was cut dramatically and I get better-qualified applicants.

My list of pre-screening questions/statements:

1. Applicant must make 3x the rent. If the applicants are related (blood, marriage, adoption) then we combine their income. if they are unrelated and there is more than two of them, each individual must make 2x the rent. This eliminates the four kids wanting to pool their money and rent something they can't afford which is always a mess.

2. Do they have pets and do the pets meet our standard of type, breed, size, age.

3. Every adult must pass a credit/criminal background.

That's enough for my process. You may have a different list that works for you. Just think of the top three things that would disqualify someone from your rental and then ask those questions.

Cody L. · Answer

Raise the price

Don’t show unless someone applies FIRST (that’ll lower the # right there. Offer to refund app fee to anyone not selected)

That should do it.

I focus on having policies that treat everyone the same regardless of skin tone or any of that. So if you’re running your properties the way you “should” (meaning the way you would regardless of our laws), fair housing shouldn’t be a problem

Heath M. · Answer

I also transitioned to the "showing" instead of single appointment style too.  And I made sure they were aware of my requirements.  Facebook marketplace had a ton of tire kickers with the auto "Is this available" button.  I cut and pasted a generic response that included my list of requirements again.

Mary Jay · Answer

Thank you so much, guys!

I really appreciate your help!

I used your advices and now limited my showings to only qualified people: have 4 showings instead of 15

Thank u so much!

Theresa Harris · Answer

Have people complete an application and those that have completed the application and meet your criteria on paper, have them go to one of the two showings.  Set up two times to do showings on different days and at different times (e.g. morning and afternoon).

Andrew Flora · Answer

First step would be to do open house style showings.  I advertise for about a week to gain interested parties, then I host one open house for 2 hours.  I do not meet individuals for single showings.

Best step would be to post the application online.  Screen applications and only show it to those who meet your minimum requirements.

If you still have an overwhelming amount of applicants, your price is low and you need to raise rents up to market average.

If you do all this and are still overwhelmed just be blessed that your rental is very sought after, that should give you some peace of mind.  Consider hiring a leasing agent to show it and screen tenants for you.

How to limit showings without violating Fair Housing?

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