Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 9 years ago on . Most recent reply

User Stats

76
Posts
55
Votes
Adam P
  • Investor
  • Chicago, IL
55
Votes |
76
Posts

Rent rise discimination

Adam P
  • Investor
  • Chicago, IL
Posted

Are there any laws defining rent rise discrimination for non-protected classes?

I am growing rapidly, and trying to develop lease renewal strategy.  As all landlords learn after a while, not all tenants are created equal.  Some pay rent early every month, rarely complain, and are very low maintenance.   Others pay on the 5th every month, and call to complain about anything they perceive to be wrong about an apartment.

If I am doing renewals, are there any laws stopping me pricing rents around the maintenance cost of a tenant?   Many tenants are not bad enough to kick out or not renew on, but still cost me more than other tenants.  I would prefer to ultimately build the business around extracting maximum rent from higher maintenance tenants, and less rent from low maintenance tenants within the same buildings.

At this stage, say I have 2 tenants that started renting at $1000 on a 12 month lease.  At renewal time, if I offer 1 tenant a renewal at $990 per month, since to me they are pure profit, but offer the other tenant a 12 month lease at $1100 per month, to cover the $100 of my time I waste on them, could I be sued for discrimination?

Most Popular Reply

User Stats

9,822
Posts
15,766
Votes
JD Martin
  • Rock Star Extraordinaire
  • Northeast, TN
15,766
Votes |
9,822
Posts
JD Martin
  • Rock Star Extraordinaire
  • Northeast, TN
ModeratorReplied

Well, you can always be sued for anything, at any time. So there's no such thing as no risk. Now, whether that suit will be successful is another story.

I would say this: you are generally free to set rent however you want. However, if a determined tenant could display that you were charging them more rent for a duplicate property, for no justifiable business reason (rents went up after lease expiration, building taxes, etc), than another tenant, they could probably come up with a protected class reason that you were violating - race, age, family status, etc, and then you would be forced to use your "pain in the ***" logic in court to defend the differential.

So I would say you should probably not proceed down that road, and if you do, I would probably delete this thread. 

business profile image
Skyline Properties

Loading replies...