Most
people are honest and hardworking. And I’d venture to say that 96 percent would
be terrific tenants. But you need to screen them all to sort out the 4 percent
who are potential problems.
My
biggest concern is getting stuck with a tenant who has a history of destroying
previous rentals or not paying the rent. And I tell them upfront that if this
type of thing shows up, the deal is dead. The tenant pays the background-check
fee and gets it back if they pass.
If
you are a landlord or plan to buy a rental property, you should know that you
cannot base tenant selection solely on race, color, religion, sex, familial
status, national origin or disability.
Now
the Obama administration says that refusing to rent to someone with a criminal
record could be a form of intentional discrimination and could get you in legal
hot water.
First, the facts
As
many as 100 million U.S. adults — or nearly one-third of the population — have
a criminal record of some sort. Our prison population of 2.2 million adults is
by far the largest in the world. As of 2012, the U.S. accounted for only about
five percent of the world’s population, yet almost one quarter of the world’s
prisoners were held in American prisons.
African
Americans and Hispanics are arrested, convicted and incarcerated at rates
disproportionate to their share of the general population. Across all age
groups, the imprisonment rates for African American males is almost six times
greater than for White males, and for Hispanic males, it is over twice that for
non-Hispanic White males.
Now, Obama’s rationale
President
Obama and HUD have concluded that based on the above facts, criminal records
create barriers to housing that are likely to have a disproportionate impact on
minority home seekers.
What
all this means, as I interpret it, is that if you exclude someone because of a
prior conviction, you must be able to prove that it was necessary to achieve a
substantial, legitimate, nondiscriminatory interest. What’s more, you must
apply the same standard to rental applicants of all races and colors.
The sad thing is that this has nothing to do with fixing our
broken criminal justice system or the fact that there are too many attorneys
running around lose.
It’s simply shoving political correctness down the throats of
hardworking Americans who invest their
time and money to provide a decent home at a fair price for others to live.
And
Congressman Dan Donovan (R-NY) thinks it’s wrong, too. He blasted HUD’s
guidelines in an April 26, letter to Secretary Julian Castro. You
can read it here.
The bottom line is that I can deal with someone who has had
problems with the law. Everyone deserves a second or third chance. But whether
I rent to them should be a decision I make based on what the background check
reveals and my gut instincts … not what Obama and Washington bureaucrats
determine is correct for my business.