If you're just getting started in real estate investing with rental properties, be sure you understand how laws apply to your leasing practices. For example, you're allowed to set certain rules for renting, such as not allowing pets, but you can't refuse to rent your property to someone based on race alone. If you refuse to rent based on race, you might face a racial discrimination lawsuit. Sometimes, a potential renter may be denied and think the reason was based on race and consult an attorney. If this happens to you, you should hire an attorney to settle the matter without going to court if possible or to explain your position during the trial. Here are some facts you'll want to gather about your rental policies and the incident in question.
Your Tenant Requirements
The first step is to make sure you're within the law with your tenant requirements. You may think you are, but it's possible you're in violation without knowing it. When you have a vacant home up for rent, you'll want to investigate the people who apply as best you can. This could involve doing background checks, credit checks, calling references, checking past rental history, verifying employment and income, and assessing the debt-to-income ratio. You may even ask about things like pets and smoking. However, there are certain things you can't take into consideration when renting, such as race, that you'll want to get legal guidance on. Your rental policy should be in compliance with laws if you have to go to court.
The Reason The Applicant Was Denied
You may have had several people apply for your vacant rental property, and it's your right to make the best business decision in choosing a tenant that is the most likely to keep up with rent based on credit history and not be a troublemaker based on a criminal record and references. Let your attorney know why the applicant was denied. If it was due to low income, or a bad credit report, then that can be used as evidence the applicant wasn't denied based solely on race. Also, you may want to present your rental history that shows you have other tenants of all races, if you do, as more evidence that you don't discriminate based on race.
Details About The Incident
Walk through the encounter you had with the rental applicant to see if there is something you said or did that indicated you wouldn't rent based on race. If you made racist remarks and are caught on video, then your attorney may have to take a different approach than if you didn't say anything offensive and nothing unusual happened during the application encounter.
Racial discrimination lawsuits are complicated, and when you're a landlord, being accused of not renting due to race can harm your reputation and lead to a bad outcome for you. Even if you know you are innocent, you need a racial discrimination defense attorney to protect you as you go through the process of defending yourself and working out the situation.
