Wednesday, June 23, 2010

How to Steer clear of a Fair Housing Lawsuit from a Disgruntled Tenant

Here’s a substantial list of the top 5 things every landlord needs to keep in mind when interviewing probable tenants, and how to avoid discrimination lawsuits under the Fair Housing Act. When selecting your tenant, keep these in mind.

It is unlawful to discriminate. Federal and state anti-discrimination laws control what you can say and do in the tenant rental process. You cannot reject somebody your apartment merely because of their ethnic group. If using a real estate agent to list your rental, you cannot tell them that you will not rent out to a particular ethnic group. 

Ask for Recent Employment information, References, and proof of Credit Score. Landlords can easily run a credit check of forthcoming tenants on the internet for a deminimis fee. In addition, you can and should exclaim the tenant's references, especially ex- landlords. You should also corroborate an applicant's employment history, wages, and bank savings account information. In case the landlord tenant bond goes sour and you need to hire an eviction new york attorney, you will need the tenant’s employment information to garnish their wages so you can collect back rent.

Be constant in your screening. Make it your policy, for example, to always insist on credit reports; don't just get a credit report for a single parent or people of a particular nationality.

Make decisions based on the fact that you are running a business. You are lawfully free to select among probable tenants as long as your decisions are based on lawful business criteria. Don't make decisions based on personal reasons. You are free to refuse applicants with inferior credit histories, income that you plausibly regard as not enough to pay the rent, or previous actions -- such as property damage or regular tardy rent payments -- that makes them a poor choice. It goes without saying that you can legally decline to rent to someone who can't come up with the rental deposit, who has pets, or who fail to meet some other precondition of the lease.

Be informed of landlord tenant laws in your area. Fair housing laws in particular identify clearly illegal reasons to decline to rent to a tenant. The Federal Fair Housing Act prohibits prejudice on the basis of race, religious conviction, national origin, gender, age, familial status, physical or psychological disability (including recovering alcoholics and people with a previous drug habit). Numerous states and cities also disallow discrimination based on matrimonial status or sexual orientation. In addition, various urban laws forbid landlords from collecting rent until they have a “legal apartment”, i.e. have a town or county issued permit authorizing a two family dwelling or an accessory apartment house. A landlord tenant new york attorney can help notify you of the laws relevant in your neighborhood.

Educate those assisting you to rent so that they understand the rules, too. Everybody who deals with potential renters should adhere to fair housing laws. This includes owners, landlords, family of landlords, managers and real estate agents, and all of their employees. As the property landlord, you could be held lawfully accountable for your family's discriminatory statements or behavior, including sexual harassment.

Be consistent. Consistency is vital when dealing with soon-to-be tenants. If you don't regard all tenants more or less equally -- for example, if you randomly set tougher standards when renting to members of a racial minority -- you are violating federal statutes and opening yourself up to civil suits. And if you offer one person a break (such as lowering the security deposit for a single mother but not for other people), you'll also risk an allegation of favoritism from other renters.

Want to find out more? There's a lot more to discovering and selecting excellent renters. You should e-mail any tenant landlord attorney for a complimentary consultation regarding the statutes relevant in your neighborhood.

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