Avoiding Appearance of Discrimination

[Julie O'Connor]

Hi BP Community. I have been a long-time “lurker” and now am a first-time poster. I own a SF rental in Northwest IN (former primary residence). First time renting this property.

Property has been advertised on Craigslist. I received approx. 7 inquiries in the first 24 hours.

The first applicant was referred to me via a volunteer group of which we are both members and is an acquaintance. She came to see the property the day it was listed and submitted an application the following morning (today). According to the application, she meets the income and employment criteria. She explained verbally that she has or anticipates a ding to her credit due to a short sale which she is in the middle of.

APPLICANT 1

• Meets income/employment criteria
• Credit isn’t great
• Has 2 dogs
• Single, no kids

The second applicant came to view the property a few hours after the first app was submitted. He submitted his application on his way out. According to the application, he meets the income and employment criteria. He explained verbally that he has some dings to his credit and his score isn’t great.

APPLICANT 2

• Meets income/employment criteria
• Credit isn’t great
• Has 1 dogs
• Engaged, has kids
• Is a racial minority

I planned to move ahead with the first applicant because (1) she was first and (2) she is known to me – active in the same group, has been to my house before, etc. I was not going to do a background check because she is known to me and others in the group. I was not going to do a credit check since she was upfront about her credit issues.

If for some reason this applicant declined or fell through, I would move forward and process the application of the second applicant, although I would require a credit and background check since he is not known to me and came through craigslist. I did explain to the second applicant that I already had received one application and was processing them in order of receipt.

My specific Qs:

• 1)Am I opening myself up to a potential discrimination charge from the second applicant by moving ahead with the first applicant and not requiring a background/credit check, even though I would require it of the second person?
• 2)What do you tell people who inquire about a property’s availability after you have already received several applications? Do you still make appointments to show it knowing you may have to cancel if you receive a signed lease/deposit? 

Thank you!!

[Karl Pierre]

Being what some would consider a racial minority this post caught my eye...not sure how race plays into this.  I'm not calling you a racist but for someone who is a racial minority it sure sounds like you have already made your decision and for some reason race was part of your consideration.  You haven't checked either of their credit and they both disclosed to you that their credit may have issues...both were upfront and honest.

I don't know about the other landlords on BP but I have been burnt more often by people I know or have come recommended by friends.  For that reason I don't lease to people I know unless they meet the same standard that I set for absolute strangers.  That way I avoid bias.

In this case it sounds like you are making 2 huge mistakes both being made because you are not using a standardized objective analysis.  By doing so it filters through your own prejudice (both good and bad).

I would take more applications run background checks on all and pick the best tenant on paper from both a financial and credibility standpoint.

And please if race plays a part in who you rent to find it in yourself to unlearn whatever prejudice you have learned.

-Karl