Landlord seeks advice renting pool property to family with small children (credit, legal)
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OMG! OMG! OMG! I forgot rule #1: "applicant lied on rental application."
Question: "Have you ever been arrested?"
Answer: "No."
Criminal background check reveals about a dozen arrests, including one that IMO would have difficult or impossible to avoid conviction.
Game, set and match. If applicant wants it in writing I'll send it.
He even admitted it via applicant-Realtor-Realtor-landlord channel. He said he couldn't understand why he had been rejected except the "{REDACTED}" situation. If I de-redacted it everybody would agree that it constituted an arrest.
OMG! OMG! OMG! I forgot rule #1: "applicant lied on rental application."
Question: "Have you ever been arrested?"
Answer: "No."
Criminal background check reveals about a dozen arrests, including one that IMO would have difficult or impossible to avoid conviction.
Game, set and match. If applicant wants it in writing I'll send it.
He even admitted it via applicant-Realtor-Realtor-landlord channel. He said he couldn't understand why he had been rejected except the "{REDACTED}" situation. If I de-redacted it everybody would agree that it constituted an arrest.
I am saved!
Nothing in what you posted exempts you from following both federal and state laws. The laws require that if you use a CRA and the information they provide results in an adverse action, you most follow specific steps to comply. I don't see anything that offers excuses to follow the law' it says if you take an adverse action (be it them lying, having poor credit, failing to disclose a conviction, or anything in that report) if you acted on the information in the report, for whatever reason, you must follow the law.
Hey, it's up to you to decide if your going to obey the laws or create your own interpretation of what you want to do because you feel its what works for you. You are fishing for a reason to justify not following the law and judges are not your fishing buddy when it comes to these statutes. Just know that if you are caught violating the law (and there are people who apply to places in hopes that the law is not followed so they can sue) the law is written to smack you and reward the "victim". Maybe someone else can explain the concept that the laws says you must do A & C & C, regardless of what reason you have to deny.
But, it's your business, your money, your decision.
Well okay I will seek further advice if a response is required. I will visit my credit check site and see if I am able to submit a response there.
Otherwise, how would you suggest I respond, other than via email, since the applicant currently has no valid address?
I think "lied on application" constitutes full justification of rejection of application. From your point of view, all that is lacking now is an official response from me via proper channels.
Tell me and I will do it. And thank you for your assistance.
Tell me and I will do it. And thank you for your assistance.
because you have to follow both federal law and Arizona's law, you need to get a guideline and copies of the notices and a sample Adverse Action letter from your attorney and follow the instructions they give you. There are generic ones that comply with the FCRA available all over the internet. You can also get off the internet the required FTC notice you must send the person. I bet if you just sent the federal notices, that would get you out of trouble.
Quote:
Originally Posted by Lovehound
I think "lied on application" constitutes full justification of rejection of application. From your point of view, all that is lacking now is an official response from me via proper channels.
Exactly, the law could care less why you are denying the application, all it cares about is if you denied based on information received in that consumer report, that you follow the proper notification to the applicant and provide the information required by law. You send the same notices and follow the same procedure if the denial is based on a $1.06 late payment to their Macy's credit card, or they been in jail for murder when they burned down their apartment building to get even with the property manager.
Thank you so much Rabritta. I attempted to give you positive +rep but the forum tells me I must spread it around indicating that I have already given you as much +rep as the forum permits, and indicates to me that you give great advice. Thank you again and I will initiate my response tonight, even though all parties are probably asleep, except you and I.
I have no formal address for the rejected tenant, so I emailed him via my Realtor to his Realtor, with the notice, and with instructions that I will send him a written notice if he will furnish me with a valid address.
To add to my above post, I had received an email from the rejected applicant via the applicant-Realtor-Realtor-landlord email channel in which he stated, "I wanted to know if I could get a copy of the background check. I have no idea what is on there other than the DUI."
Oh heck, I might as well quote most of my response:
Quote:
I understand that as a landlord I am responsible to send you an adverse action notice regarding why your rental application was rejected. I am unable to send you a written notice since as far as I understand you have moved from your previous address and have no permanent address.
With your permission I hope you are willing to accept this email notification, or if you wish formal written notification please address your request to my Realtor who will forward it to me, and include your present mail address, and I will supply you with the following in writing.
Specifically, you were rejected because you supplied an untruthful answer on your rental application regarding question #96, "Have you ever been convicted, arrested, or charged with any crime?" to which you answered "No."
Please note that in your email below to your Realtor that you have admitted that you were arrested for DUI. This constitutes an arrest, which contradicts your answer to question #96 in your rental application.
An untruthful rental application is sufficient legal grounds to deny a rental application. This, and information from your background check confirms that you have filed an untruthful rental application. That is the reason why your rental application was rejected.
If you wish to receive a formal written notification of this adverse action notice please refer to the statement above regarding how you may receive this notice in writing. Again, I am regretful that I am unable to move forward with your rental request.
...............If some kid drowns not only will I have it on my conscience but I could lose everything I own...............
Personally, I solve this problem by not keeping any rental properties that contain an attractive nuisance. You can not refuse to rent to children and, yes, the parents, who are negligent and not watching their child will sue you and win if their kid drowns.
If you insist upon owning rentals with pools, install every safety feature possible and get liability insurance to the max and then add some more on top of that. Put the house with a pool into it's own LLC and divide your other properties into their own LLC's. (consult a lawyer).
If you are going to be a landlord, you should have your rental criteria in writing. Applicants should be allowed to read that before they apply. Do not reject for any reason that is not included in your rental criteria.
I prefer tenants with children because once they are settled and the kids are in school and establish friends, the tenants won't move out just to be moving. However, I keep a very complete rental criteria and I can always find a legal way to reject a family with out-of-control kids that are obviously undisciplined and destructive. I am not rejecting for children; I am rejecting because the applicant does not meet my written criteria.
I can show a well established history of renting to families with children, so it would be hard to prove a claim that I reject for children.
If the applicant asks why rejected, that is what they are told: they did not meet my written criteria (which, I might add, they were shown before they applied).
If you want to keep rentals with a pool, you have to take your chances with the possible lawsuit. You can not reject an applicant for no other reason than the applicant is attempting to place their own child in mortal danger and the law is going to make you fully responsible for the safety and well being of that child.
I'm headed towards beefing up the protective measures, attempting to find a qualified pool safety expert to inspect my property and give it a clean bill of health, and my insurance agent is pricing out what it would cost for a commercial insurance policy that covers all my properties, and then an umbrella over that.
Selling the properties is out of the question. I went through hell to get them, gave up 5 months of my life working full time 7 days a week most of the time, and if I ever sell them I'm throwing in the towel.
Personally, I solve this problem by not keeping any rental properties that contain an attractive nuisance. You can not refuse to rent to children and, yes, the parents, who are negligent and not watching their child will sue you and win if their kid drowns.
If you insist upon owning rentals with pools, install every safety feature possible and get liability insurance to the max and then add some more on top of that. Put the house with a pool into it's own LLC and divide your other properties into their own LLC's. (consult a lawyer).
If you are going to be a landlord, you should have your rental criteria in writing. Applicants should be allowed to read that before they apply. Do not reject for any reason that is not included in your rental criteria.
I prefer tenants with children because once they are settled and the kids are in school and establish friends, the tenants won't move out just to be moving. However, I keep a very complete rental criteria and I can always find a legal way to reject a family with out-of-control kids that are obviously undisciplined and destructive. I am not rejecting for children; I am rejecting because the applicant does not meet my written criteria.
I can show a well established history of renting to families with children, so it would be hard to prove a claim that I reject for children.
If the applicant asks why rejected, that is what they are told: they did not meet my written criteria (which, I might add, they were shown before they applied).
If you want to keep rentals with a pool, you have to take your chances with the possible lawsuit. You can not reject an applicant for no other reason than the applicant is attempting to place their own child in mortal danger and the law is going to make you fully responsible for the safety and well being of that child.
A good post, but the bolded portions are incorrect. In order for any such suit to prevail, it would have to be shown that the landlord was somehow negligent and thus contributed to the accident.
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