Landlording can at times be like walking in a minefield. One small, unintended misstep and boom! It blows up in your face. No one intends to step on a landmine, and the majority of landlords I know do not intend to discriminate. But small missteps can lead to unintended discrimination and potential legal trouble. Here is how.
Most People Want To Be Helpful
Most people, by their basic human nature, want to be helpful towards others. Many will hold a door, give directions when asked and offer helpful advice. Being helpful is one way we all function together in society. Being nice to each other helps us all get along. Unfortunately, anti-discrimination laws can cause landlords to trip and step on that proverbial mine if they are not too careful with their “helpful” advice. And being accused of discrimination is a serious landmine.
To help explain, let’s pretend that you have made it past that first phone call with a prospective tenant. They did some checking and have called you back to further discuss what you have available. What are some things you might say that could lead to inadvertent and unintentional discrimination charge?
This One Has More Bedrooms
Your prospective tenant might tell you that she has a child or two that will be living with her, or she may mention that her elderly father or mother may be moving in. While looking at a one bedroom apartment, you begin to suggest two and three bedroom properties you have available. You suggest them because you honestly believe they might be a better fit. Unfortunately, that advice may be misconstrued as attempting to drive someone away or towards a specific property because they have children or of their familial status.
This Apartment Might Be Quieter
You might think that by suggesting an apartment at the end of the hall, or on the top floor, or in the back may be helpful to your prospective tenant. And it could be. But, it could also be interpreted in a negative manner. They might think that you are trying to keep them and their kids out of the way or out of sight.
The Units I Have In This Particular Neighborhood Might Be More Too Your Liking
You might be completely right. Your tenant may favor a unit in a particular neighborhood. Again however such a suggestion can easily be misinterpreted. It may appear to your prospective tenant that you are trying to steer them away or towards a particular area. “Why would they want to steer me towards that particular area?” they might ask themselves. They might think that it is because they are black or lower income or have kids.
This Apartment May Be Closer To Your Price Range
Yes, one of the screening questions you should ask on that first call is about income, but offering advice or suggestions could be misconstrued as steering someone towards a location, especially if you have multiple units in multiple locations. We all know that location, location, location affects the rental price. Thus rents will vary depending on location. Again do not appear that you are trying to steer.
Keep Your Advice To Yourself
As I said in the intro, most people just want to be helpful. Most landlords are the same way. They often have the best of intentions. They may really believe that a particular unit in a particular building or a particular location is best for their prospective tenant. But good intentions can have negative consequences.
Landlords should avoid making these types of suggestions to prospective tenants. Instead, tell them about every property you have available. Then, let them know about your rental standards and criteria and leave it at that. Let them then decide on their own, which properties are best for them. Then let them apply. It seems sort of wrong not to be able to make informed suggestions to help someone, but that is just the world we live in today. One person’s helpful suggestion, can and will be interpreted as unintended discrimination.
Kevin Perk is the founder and publisher of Smarterlandlording.com. He is the author of Advice From Experience To New Real Estate Investors. Contact Kevin here.