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I'm A Protected Class - You Cannot "Not" Rent To Me.

By
Real Estate Broker/Owner with KGC Properties LLC, Tucson Property Management & Real Estate

Over the weekend, a potential rental applicant said to me: "I'm in a protected class - you cannot "not" rent to me."

To a do-it-yourself landlord or someone who does not have tenant qualification systems in place; or for those that do not know how to properly deny tenants - this statement may scare you enough to rent to that individual because you don't want to land in court for discrimination.

But, I was confident when I said, "You were denied because you do not meet the minimum rental qualifications."

Can I do that?  Of course!  That's because if I make any exceptions to the tenant qualification standards, I'll be in violation of the Fair Housing Act for singling out certain groups of people for special treatment, also known as discrimination. 

To avoid any lawsuits - treat everyone the same and fairly.  Just because someone is in a protected class - doesn't mean they don't have to meet the rental standards - they still need income, they still need to pass the background check, etc. But you have to have uniformed standards of qualifications in place, and they must be in writing and stated to each individual who fills out a rental application in order to properly deny someone for those reasons.

If you are afraid or uncertain of how to handle these and other rental situations, it's probably time to hire a property manager. Otherwise, know that it takes more than a working knowledge of the laws - it takes some common sense and a standard set of procedures that you must follow in order to keep yourself protected!

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Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com .

                                                 

 

This blog is written with my opinions and my opinions are  presented with accuracy but not guarantees. Please talk to a professional before making any real estate, financial or agency decisions.    Gabrielle Kamahele Rhind - 2014. If you want to reprint parts of this - just email me for my permission: KGCProperties@gmail.com .

 

Comments(51)

Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

This is why we have the Fair Housing Act. To protect certain classes. But, if someone doesn't meet income and credit check requirements, that doesn't mean they can rent that housing anyway.

May 10, 2011 03:54 AM
Cindy Logan
Mark 1 Real Estate Advisors - Huntington Beach, CA

Gabrielle, as an investor, I'm an advocate for using property managers; they know the rules, I don't.  The laws are ever changing, and I'm confident that there are more informed people than me.  Some people use their "class" whether it's race, or  gender or whatever, to threaten naive landlords.

May 10, 2011 04:10 AM
Mike Yeo
3:16 team REALTY - Frisco, TX

Great post, Gabrielle. The arguement can go both ways. You are right, for those who don't understand, they might see it differently. Always treat everyone equally and you have no fear.

May 10, 2011 04:30 AM
Chris and Berna Sloan
Group 1 Real Estate - Tooele, UT
Tooele UT

Well done! Stay consistent and there are no worries!

May 10, 2011 04:44 AM
Billie Hillier
http://702IsHome.com - North Las Vegas, NV
Savvy Home Realty Solutions

Another reason I don't want my property management license --- but yes, treat every one equal and we will all be ok.

May 10, 2011 04:50 AM
Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX
Real Estate Agents

If you conduct your business ethically, treating everyone equal, you will have nothing to fear about. People are always out there to take advantages of everyone.

May 10, 2011 04:56 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Roommates are not a "protected" class -- I won't rent to roommates!  And you're right, they have to be able to meet the requirements, and sometimes credit issues, or income are where their applications can be denied.

May 10, 2011 05:17 AM
J. Philip Faranda
Howard Hanna Rand Realty - Yorktown Heights, NY
Associate Broker / Office Manager

Frankly, when someone says something like that it is good fortune that they were in fact denied. Who wants to deal with that sort of devisive attitude? 

May 10, 2011 05:19 AM
Adam Mallory
eBroker Real Estate 619-566-ADAM - San Diego, CA
Broker, ABR, e-Pro

Great post!  It reminds me of one of the best things I ever read about property management and procuring tenants: "Having bad credit is NOT a protected class"

May 10, 2011 05:41 AM
Patricia Aulson
BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate - Exeter, NH
Realtor - Portsmouth NH Homes-Hampton NH Homes

Hey thanks for the interesting and informative post today.  I enjoyed the read.

 

Patricia/Seacoast NH & ME

May 10, 2011 05:48 AM
Shawn King
CBCMA / CBC Mortgage Agency - Los Angeles, CA
Chenoa Fund--Get Signed Up.

What lunacy!  I love how people try to use federal regulations as a club; when they are trying to promote equality; yeah being consistent is the only ethical course.  Nicely done.

May 10, 2011 06:09 AM
Michele Myers
Prudential Homesale Services Group - Harrisburg, PA
Harrisburg/Hershey Realtor

As a landlord, I am always careful about adherence to rules and regulations.  Nice post.  Thanks for sharing.

May 10, 2011 06:22 AM
Irene Kennedy Realtor® in Northwestern NJ
Weichert - Lopatcong, NJ

Gabrielle,

I remember telling one gal that she might be a protected class but her pit bull certainly wasn't and the landlord said "no pets." Even she had to laugh.

May 10, 2011 07:20 AM
Leslie Prest
Leslie Prest, Prest Realty, Sales and Rentals in Payson, AZ - Payson, AZ
Owner, Assoc. Broker, Prest Realty, Payson,

People who lead with that are the ones who have learned to play the system. It's too bad that Owners will sometimes fall for it. They should hire a good property manager!

May 10, 2011 07:37 AM
Tricia DeSouza
HomeSmart - Scottsdale, AZ
Selling Scottsdale Luxury

This is a good reminder of the Fair Housing standards. Many people would be scared by that statement and rent to them as a result, but in turn they could actually be in violation for renting to that person, and not to someone else.

May 10, 2011 07:40 AM
Dianne Deming
RE/MAX Realty Group - Rehoboth Beach, DE

This is a great post--well written and to the point.  Equal treatment of all people applies to sales as well as rentals.

May 10, 2011 09:49 AM
Tom Branch
RE/MAX Dallas Suburbs - Plano, TX
Broker, CDPE, SFR, ACRE, Plano TX Ambassador

That's the right answer. It's not a matter of being in some protected class--it's that they did not meet the rental criteria. I always have the rental criteria in written form just to be safe and we do not deviate from it.

Tom

May 10, 2011 10:35 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

It never ceases to amaze me. The people with the lowest credit scores & other unqualifications are the first to always yell 'foul' about whom the landlord should rent to. It probably works a good percentage of the time to an inexperienced agent/owner. You must have systems in place & treat all applicants fairly.

May 10, 2011 11:42 AM
1~Judi Barrett
Integrity Real Estate Services 116 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

I do not handle rentals.. I do have a guest house that I have considered renting.. but I need to bone up on how to go about it properly since I do not do it on a regular basis.  :)

May 10, 2011 01:12 PM
Justin Coleman
Fairway Independent Mortgage Corp - Salt Lake City, UT

With all of the anti-discrimination laws and best practices currently in place, there is no protected class.

May 11, 2011 02:35 AM