As the presidential election approaches, the issue of immigration - primarily illegal immigration - will shift further into the spotlight. This has implications for all of us, but it may have a particular relevance for buy-and-hold real estate investors.
Across the nation local municipalities are attempting to enact legislation which would hold landlords responsible for verifying the legal status of their tenants, and would impose heavy penalites on any landlord found to be providing housing to an illegal immigrant. From the landlord's point of view, this is a tough issue. I live in a border state. Regardless of your political affiliation it's clear that illegal immigrants are woven into the economic and social fabric of our society. I'm trying to envision operating under laws which require me to evaluate an applicant's legal status. Is that SSN bogus or real? How about that ID card? Or the driver's license?
There is an unfortunate solution that many landlords will resort to: just don't rent to applicant who seems "suspicious". Meaning...minorities with accents need not apply. This, obviously, is a law that invites investors to turn to discriminatory practices.
I'm not a policeman and I'm not an Immigration Service agent. That's not what I do. I'm a real estate investor, and part of being an investor is to offer safe, affordable housing - places where families want to create homes - and to do so profitably. Landlords should strongly oppose laws which seek to turn us into government enforcement agents. This is not something I'm trained to do, and I have neither the tools nor the resources to do it properly and fairly.
These laws are bad. As landlords we should be vocal in our disapproval when they pop up in our states and towns.
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