Owner Wants to Look the Other Way!

Those of us who crossed over from real estate sales to real estate leasing know how different Fair Housing rules are applied. They are the same rules, we just have to look at them more closely and dig deeper into their meaning.

There have been instances where I have had to explain to owners, who are real estate brokers, how Fair Housing affects our business and that Fair Housing can bring an owner and management to its knees for violations. There are also a lot more opportunities for violations in this business.

When management and the owner disagree in an area of managing the property that would knowingly put all at a high risk for a violation, there has to be some compelling information to convince the owner it's just not worth the risk.

We all want to keep our good tenants. None of us want move-outs. But, when the tenant violates the lease agreement, we have to take action to cure the violation. If the only cure is for the tenant to vacate, how do you convince the owner you can't look the other way this time because it is the same situation you have evicted 2 other tenants for?

This particular situation I am currently addressing involves a resident who just got married in April. Her new husband just moved in and she has promised me his application for 2 months, which I still do not have. This past week, she told me he was released from prison a year ago, but has turned his life around. Knowing her, she wouldn't have married him unless he had.

We do no accept anyone with felony convictions during the past 20 years or misdemeanors within the past 5 years. This criteria is in writing and it is in our lease that all new move-ins have to qualify based on the criteria and be pre-approved before they move in. I have evicted 2 other tenants in the same situation, as recently as this month.

We are 98% occupied, with one vacant as a result of criminal activity by the previous tenant's convicted criminal boyfriend. The owner says "I don't want to evict her because she is a good payer." Well, so were the previous 2 tenants. One of those tenants was shot by her fiance only 2 months after he moved in with her. He was wanted in another state on a "murder for hire" charge that she didn't know about! I had to testify at the trial about 3 months ago, where he got 30 years for attempted murder. I still feel guilty for not demanding a criminal background check immediately.

Fair Housing scares me to death!!! I've had Fair Housing training almost anually since 1988 and I read case results all of the time on the Internet. Every time I bring a situation before the owner that may require an eviction, the first question is always "Are they good payers?" All of our tenants are good payers and have been for about a year.

I'm so frustrated with this consistent brick wall called "Money." Perhaps a chart showing how much we'll lose if someone is evicted for a lease violation, verses the amount of a Fair Housing lawsuit. Does anyone know of any dollar amounts I can use?

Sounds like a real mess. Shootings? Prison? Felonies? Is your owner really willing to rent to this quality of individual for the sake of the dollar? If they are, your in a bind as a manager.
If your rule is no one on the property with a prior felony, then that rule must be applied to each and every tenant AND their visitors and newly entered co-tenants. Rules are of absolutely no value unless they are applied directly across the board to each and every one. Word spreads like the flu inside an apartment complex. Many tenants have little else to do besides judge the manager on how the rules are applied.
Thanks to a blogger on this forum, I have just read the new HUD position on prior felonies and applications for housing. It seems the government and the White House is trying to leverage management to "ease up" on those with convictions, even sexual predators. Well, here is my view on that "idea"

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Stick it where the sun don't shine.
If we allow our principles and policies to decline, to where we are renting to this quality of tenant, we might as well begin the process of rolling up our cords and looking for another field of endeavor. Your well manicured and very appealing little piece of heaven apartment complex is going to head "90 MPH down a dead end street".
In this post I haven't even gotten into "Fair Housing". I think the issue is going to be the Fair Housing laws might get the owner some fines eventually, but the lessening of tenant quality is going to be the real killer. An apartment complex either has rules or it does not. They either apply to everyone or they do not. How could you tell Mrs Smith her drug convicted son in law cannot even visit her due to a felony, yet let Mrs Jones move in someone she just married who has a conviction as well?
In closing, and this is just my opinion of course, but I see you needing a closed door conference with your owner. Subject: "What's it gonna be here"? What you don't want as a manager, is an unclear policy as to how you run the property.

Sandy, do you still have an active real estate license? You are setting yourself up to be named, as well as the company Owner, for the lawsuit, should it happen. I know I can be held personally liable for a Fair Housing lawsuit.

What I would try to reassure the Owner is since you have a Waiting List, you can re-rent units, so STOP WORRYING because you are handling it! Management companies trust me to fill the vacancies, collect rent, and maintain occupancy according to the state and federal laws. I would ask him why he's now suddenly so worried about money? Have you failed in any way to take care of business?

Aside from that, I am wondering about your Policy concerning adding people to a Lease. It sounds to me like a Resident should contact the Office, prior to allowing someone to move into their unit, bring the Prospective Roommate/Spouse to the Office and fill out an Application. Is this right? I can only say this about that - good policy. But that is in a perfect world. As you are finding out, people are not very cooperative sometimes. I suspect that is because they already know their significant other will not qualify! You have no alternative than to follow your policy as outlined in the Lease and Selection Criteria. So, you are back to being held accountable for any deviation.

I'd start looking for a new job with another management company that takes Fair Housing laws seriously.

Hello Sandy,

I would go with what Mindy said about looking for another job. I would also resort to memorandum for records on who you talked to when and keep them. If a law suit starts you then become part of the problem and there will be a stigma that will follow you as being a part of that problem even though you tried to do the right thing.