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CategoriesLong Term Rentals

Keep These Questions To Yourself

By brioproperties,

When we are showing a vacancy, we are usually in one mode: get it rented.  We want the best qualified applicant as soon as possible. We want to find out as much about the person either prior to completing the application.  It saves us time right? The more we know sooner, the easier it is for us to weed out the bad candidates. So we ask questions to get some answers and satisfy our curiosity.  

Sometimes we are just making friendly conversation and we tend to forget that in the role we are as landlord, what we say to tenants and prospective tenants is scrutinized.  So what was meant to be a friendly conversation point about the person may turn into a complicated Fair Housing complaint down the road.   

Here’s a list of questions that will you should avoid asking potential renters.  Some seem innocuous but can be construed as seeking for discriminatory information.  

Where were you born?

This seems harmless but since its asking for information about a protected class (national origin) and it has no bearing on their possible performance as a tenant it’s on the no-no list. 

Tell me about your children.

Familial status is a protected class. Phishing for information about the children’s age, grade, etc is a potential Fair Housing lawsuit  Wait to find out information about the kids from the application. 

Do you need to know where the nearest [mosque, temple, church] is?

No. No. No.  You are inquiring about their religion, which again has no bearing on the application.  If they ask you where the nearest worship location is, that’s different because you are answering their question.  When you someone appears at a showing in unusual religious clothing, don’t make it a point of conversation. 

You have a nice accent. Where are you from?

This is also a question that inquires about national origin or ethnicity.  Your finding out someone is Welsh, Russian, etc which is something that should not have any bearing on their application.  This is a hard one for me to follow because I love accents.  

Do you have a disability?

….No. Just no   It’s rude. It’s common courtesy.  It’s a violation of Fair Housing.  

Do you have a service animal?

You can ask if they have pets but not specifically service animals.  Let the conversation flow naturally. Ask if they have pets, then if they do inquire about the breed, weight and other characteristics you want to know.  If the pet is something you don’t accept you can say so. That is when most people will tell you it’s a service animal. You are still getting the information about pets but you are letting them tell you its a service animal.

You can still find out a decent amount about your applicants without probing in areas you shouldn’t.  Be methodical with your questions and don’t forget as a landlord doing a showing you are held to a higher standard with your conversation. 
Here’s a list of common questions that are still ok to ask:

  • Do you have any pets
  • When are you looking to move?
  • How many vehicles do you have?
  • Why are you looking for a new place to live?
  • Do you smoke?
  • Does your current landlord know you are thinking of moving?
  • Do you have any questions for me about the process?

That last one is a GREAT question to ask.  It opens the door for them to tell you what might be concerning them about the application. If they are offering you the information without you phishing for it it becomes fair game.  

CategoriesLong Term Rentals Real Estate Investing

Slightly Less Offensive

By brioproperties,

The most underrated topic in buy and hold real estate investing is Fair Housing.  In fact, its staggering how many investors don’t bother learning much if anything about Fair Housing. I was flabbergasted when I read a recent thread on a national FB group for landlords where half a dozen people were commenting that Fair Housing only applies to applications…once the person moves in it didn’t apply.  What the….. Are you serious? Let’s get this out of the way: Fair Housing Always Applies. Every. Stage. Of. Tenancy.

But let’s start at the beginning of the tenant process because most Fair Housing violations occur prior to the tenant moving in. Our first interaction with potential renters is usually a written ad.  This is where problems can quickly begin, even if we didn’t intend it. Remember: With Fair Housing violations, your intent doesn’t matter.  

In Fair Housing we have federally protected classes, state protected classes and sometimes county and city protected classes.  As a refresher, here’s our protected classes down to the state level: Race, National Origin, Ancestry, Gender, Familial Status (including Marital), Sexual Orientation, Lawful Source of Income, Status as a victim of Domestic Abuse, Age, Color and Disability.  The language in our ads should avoid presenting the appearance of either appealing to OR detering anyone in those classes. An example of deterring a class would be the signs from the 1800s that said “Irish need not apply”. Having that line in your advertisement would certainly be grounds for Fair Housing violation.  Yet as we said it above it’s not just exclusionary statements that create trouble. Informing people in the ad that a Kosher deli is located on the bottom floor of the building can be seen as encouraging interest and even stating that the building is perfect for those of Jewish heritage. This would violate Fair Housing because it’s encouraging one group of people to be interested over another. 

Let’s Try Read An Ad

I pulled this ad from a FB group where it was screen captioned for discussion.  Using both federal and state protected classes, see how many violations you can pick out:

Spacious 2 bedroom upper duplex available for rent.  Fridge, stove, and microwave included. Off street parking and laundry in the basement.  (Laundry requires going outside in the cold and down 2 flights of stairs. Not ideal for those with mobility issues.) Located within walking distance of stores, Chinese food, and St. Patrick’s Catholic Cathedral. I don’t provide a/c so not ideal for the elderly since they need a/c.   Lower unit is occupied and there isn’t much noise dampening between the apartments. Energetic kids might cause problems between tenants. Rent is $905. Security deposit is one months rent or $1200 if you have kids. 

How many possible Fair Housing Violations did you find in the ad?  There were 6 immediate violations.   

What Went Wrong…

Laundry requires going outside in the cold and down 2 flights of stairs. Not ideal for those with mobility issues.  

While the landlord may have had good intentions of warning those with conditions that are aggravated by stairs or excessive movement, that is not how it will be interpreted by the HUD.  HUD will view it as they are discouraging a protected class from viewing the property. The decision of whether or not something constitutes a burden because of their physical ability should be up to the person.  

Located within walking distance of stores, Chinese food, and St. Patrick’s Catholic Cathedral.

This might appear innocuous because it’s a statement of the amenities located close to the unit.  However because it mentions a particular religion it can be construed as encouraging Catholics to apply and discouraging those of other faiths because it implies the neighborhood might be a Catholic neighborhood.  Also mentioning a restaurant based on its national cuisine is not a good choice. Even though its a type of food widely available in the U.S., it appears as though that one particular type of ethnic is food is being singled out.  

I don’t provide a/c so not ideal for the elderly.

This again may be well intended but it violates Fair Housing because it’s discouraging people of a certain age from seeing the unit.    

Energetic kids might cause problems between tenants. Security deposit is one month’s rent or $1200 if you have kids.  

These statements both violate the rights of those protected by familial status. The first statement is insinuating that the unit is best for well-behaved kids or families with no kids at all.  The second statement is a more clear violation. You cannot charge someone more security deposit simply based on their status in a protected class. 

How To Fix This…

So how could the landlord have written the ad and still provided all the same information? 

Spacious 2 bedroom upper duplex available for rent.  Fridge, stove, and microwave included. Off street parking and laundry in the basement.  (Laundry requires exiting the building and 2 flights of stairs.) Located within walking distance of stores, food, and a place of worship. A/C not provided.  Lower unit is occupied and there isn’t much noise dampening between the apartments. Please be conscientious of whether this may present an issue. Rent is $905.  Security deposit is one months rent.

They have still informed people about the laundry location, the lack of a/c, and the inadequate noise dampening between units as well as listing what’s local.  But they’ve avoided trigger words like “kids”, “Catholic”, “elderly”, and “Chinese”.  

It Doesn’t Take A Complaint

To have a discrimination case lodged against you doesn’t require a person to lodge a complaint, especially with advertisement wording.  HUD and state agencies can initiate action if the discrimination is visible. The ad above has visible violations of Fair Housing therefore HUD or other agencies could bring charges against the landlord.  So don’t think as long as no one complains that it won’t be an issue.

CategoriesLong Term Rentals

Three Common Listing Mistakes By Owners

By brioproperties,

Too specific screening criteria in the ad

Many investors thinks it saves time when they extensively list their screening criteria in the ad.  Some ads will include specifics about credit score, income requirements, job stability, background check, eviction or foreclosure history, etc.  Here’s an ad I just pulled off an ad on Craigslist out west:

“ You must meet the following: credit score above 650, income must be 3xs the monthly rent, must be in current position at company at least 2 years, no felons or misdemeanors, no evictions, no foreclosures within last 5 years…”

The problem with this ad is it actually discourages people from being interested.  The rental investor looks demanding and difficult to please, not qualities a tenant wants in a landlord. The rental investor is better off trimming the ad for the necessities of qualification and leaving the rest for when the tenant has seen the property.  If the tenant views the property and falls in love with it, they might not be as turned off by the requirements (and by how the investor comes across in person versus on paper).

What are the necessities to have in your ad?  You still want to include things like no pets, no cats, etc.  If you feel you want to include some screening criteria steer clear of income requirements or credit score.  List 2 qualifications from criminal background, foreclosures, or evictions. Whatever you view is highest in priorities.  

Out of Date Pictures

The only thing worse than no pictures is out of date pictures. If your pictures show incorrect flooring, countertops or vanities you’re misleading the prospect about the unit. When the prospect arrives and the flooring  or other items are different your showing may have already ended before it started. Your pictures should be redone every 3-4 years depending on the work you do in between vacancies. If you change out any of the above new pictures are best.  

No electronic forms of contact

In today’s society it is increasingly important to have electronic means of communicating with your prospects. No one sits down at a table after eating dinner scouring listings to make a call list for the next day anymore.  If they can’t send you a message the moment they view the ad, they move on and forget about you. You can go the “low-tech” way and allow responses via email. Or you can go more high tech and list the vacancy on websites like Zillow or Trulia that have features where prospects can ask for more info or request a viewing.  


CategoriesLong Term Rentals

3 Low Budget Spruce Ups for A Tired Apartment

By brioproperties,

 

 

 

Does your rental need some sprucing up but time and cash are low?  No worries, there are plenty of ways to breath new life into a rental without sucking the life out of your wallet.

Cabinet knobs and drawer handles

I feel like knobs and handles are overlooked and underrated improvements.  If your cabinets are in sturdy shape, hardware is a great way to add a new spin on them. Adding hardware even has a practical purpose: it helps extend the life of varnish or paint on the cabinets because it reduces the skin oil absorbed and fingernail destruction.   A package of 10-12 usually runs between $15-$20, this of course depends on the style you get. If you already have hardware (says dark 1970s hardware), swap them out for a more modern silver finish.

Outlet covers and light switch covers

Nothing makes a empty room pop like an electrical cover that is different from the wall color (but doesn’t clash with the outlet or switch color!).  You don’t have to do every room either. You can chose to only do the living room and kitchen (where people spend the majority of their waking time).  These covers run anywhere from .25 cents to $1.10 depending on the finish and type you need. A silver or black outlet cover is great way to add contrast to a white outlet and white-ish wall.

Showerhead

One of the best ways to make an old and tired bathroom sparkle is changing out the shower head and sink faucet. Oddly enough renters love shower heads that do more than just spray water. You don’t need to get one with a hand held adapter if the idea of a water fight in the bathroom scares you.  Many fixed ones come with 1, 2 or 3 alternative spray settings.

These are some low budget ways to spruce up the look of your rental. In a future I blog I will give you a review of the more expensive way to update an apartment using refinishing kits for counters, tubs, and cabinets. Yes, I’ve done all of them (not all in the same unit).

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