Landlord rights and obligations

[smoterh.livejournal.com]


I'm a landlord-occupant in a 2 family home and I'm looking for new tenants. I've had a lot of responses to my craigslist ad (as of now I'm doing 15 showings this weekend). Since the tenants will live above me, I would like to make sure that the future tenant is the best I can get, so I've kept rent unchanged from previous years and I'm only doing showings this weekend so that each interested party has a chance to see the apartment and fill out an application  which inquires about their financial info and references.

Now, I've been reading up on landlord rights and obligations and the whole section on non-discriminatory practices is kind of scaring me.  I'm I allowed to pick from the pool of applicants, or am I required to rent to the person who first fills out the application/delivers the check first? Or am I obligated to rent to the person whose conditions are protected by the housing laws in the state?

For example, let's say I get an application from a geeky quiet couple with double income that spends weekends in Maine and an application from 83 year old legally blind Mongolian lesbian with 2 kids and a drum set.  Let's say that I choose the geeky couple -- what prevents Martha Coakley from opening a can of whoopass on me  for violating The Massachusetts Fair Housing statute?
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Comments

[unferth.livejournal.com]

I am not a lawyer. If you're genuinely concerned about this, you need actual legal advice, not just opinions from strangers on the internet.

I would generally think it'd be worth paying for such advice when you're (essentially) going into business for yourself. Not necessarily just to avoid discrimination lawsuits, but to make sure you handle security deposits and other financial matters correctly. But of course it's up to you.

Anyway, my non-professional understanding of the anti-discrimination laws is that of course you don't have to accept any particular application. You just have to not systemically exclude candidates because of a protected reason. Decline one application from a member of a protected class, and you're fine. Decline 99 applications from members of a protected class, then rent to the first applicant who's not a member of that protected class, and you might be exposing yourself to legal jeopardy.

Do note that some of the anti-discrimination laws are waived for two-unit properties in which the owner will occupy one of the units. Just for instance, it is my impression from some casual web research that you'd be legally allowed to discriminate on the basis of whether or not your prospective tenants have children. (But, again, not a lawyer, do not rely on this.) Although not, as I understand it, to advertise a discriminatory policy. Which is weird - surely if you're legally allowed to decide not to rent to families with children it's in everyone's best interest if you're also allowed to communicate that up front - but that's law for you.

[ratushebarl.livejournal.com]

These might be interesting:
http://www.gis.net/~groucho/landlord.html
http://www.mass.gov/legis/laws/mgl/151b-4.htm

They seem to mean that in a two-family that you live in, you can't write a discriminatory ad, you must show the apartment to everyone who wants to see it, you can't say to anyone that you turned them down for a discriminatory reason, but you aren't obligated to rent to anyone you don't want to.

Not sure if this applies to disabilities, but if I'm reading that right it would get you out of everything else. So long as you keep your trap shut and don't tell anyone why you're turning people down.

That said, I'm guessing that drumming is not a condition which enjoys state or federal protection. Therefore as long as you maintain a consistent policy of refusing to rent to any tenant who has drums, you can nix the Mongolian for that.

[dahdahdahdancer.livejournal.com]

Here is a quote from "The Landlord's Legal Guide in Massachusetts," by Attorneys Joseph P. DiBlasi and Mark Warda, from their section on discrimination: "...the owner-occupant of a two-family house is exempt from discrimination of all protected classes, except discrimination with regard to tenants receiving rental subsidy or public assistance." In a nutshell, a 2-family house is considered the landlord's residence first, and a business second. (It's reversed if you have more units.) You can choose who you want to have living in your house. That's my understanding. But - I am not a lawyer; I just read stuff written by lawyers.

[in-water-writ.livejournal.com]

Speaking of double-income geeks... would you mind linking to your Craigslist ad?

Regarding last month's rent and security deposits....

[ringrose.livejournal.com]

As a live-in landlord, I also believe in finding people to whom I am willing to rent without last month's rent or security deposit.

If you take last month's rent, or security deposit, there are a bunch of rules regarding what you can do with it. It has to be in an account of its own, the tenants have to get the interest periodically, security deposits can't actually be used for the last month's rent, etc etc etc. If you get something wrong, it's expensive.

[bombardiette.livejournal.com]

The law states that Section 8 or other protected applicants are not required to be considered in owner-occupied homes.

My old LL went through this and got fucked because he didn't live in the home.

You are under no-obligation to take anyone you don't want to, but you are not legally allowed to not show to Section 8 or other protected classes.

Re: Regarding last month's rent and security deposits....

[totient]

This. As a small landlord, and on the advice of a real estate lawyer, I do not accept last month's rent or security deposit.

[firstfrost.livejournal.com]

I am also not a lawyer, and I also believe the 2-family home status protects you, but if it didn't, I think part of the trick to protect yourself is to not ask about anything that would be a protected class. So, don't ask the 83-year-old if she's a lesbian, and if you don't know the answer, you are less likely to be thought to be discriminating based upon it.

[smoterh.livejournal.com]

I PM'd you with the link

Re: Regarding last month's rent and security deposits....

[smoterh.livejournal.com]

I don't think that last month and security is much of an issue. I put them e in an account at winter hill and pay back annual interest which is tiny. That's all I have to do as a landlord

Re: Regarding last month's rent and security deposits....

[pjmorgan.livejournal.com]

I agree regarding security deposit, but last month rent is a necessity. Otherwise its too easy for the tenant to just move out with no notice and you are out a month. Plus its a good screening tool-someone doesn't have first and last month's rent on hand is less likely to have the ability to pay in the future.

Also, I don't think the requirements for last month's rent are the same as security deposits, but I don't feel like researching at the moment.

Re: Regarding last month's rent and security deposits....

[aroraborealis.livejournal.com]

An escrow account, right?

[floormaster.livejournal.com]

I am impressed that an 83-year old has the energy for drums and 2 kids! I would rent to her (and let her know about my 80+ neighbor who plays the sax).

Re: Regarding last month's rent and security deposits....

[unferth.livejournal.com]

Rules for last month's rent payments are a lot less strict than security deposits.

http://www.mass.gov/legis/laws/mgl/186-15b.htm has the full details. Basically, they don't have to be held in an interest-earning escrow account, and the record-keeping requirements are much less detailed. The tenant is entitled to either five percent annual interest or whatever actual interest was earned, but it appears to be legal to put it in an account that pays zero interest.