HUD Threatens To Sue Landlords Who Screen Tenants For Felonies

[Louis Kelley]

Hi just read a recent article on IBD regarding HUD looking to enforce equality among all renters - even ones with criminal records. I'm a new landlord so my experience is < 3 months of doing this. For those of you with more experience in the business, any legitimacy to the article?

http://www.investors.com/politics/editorials/hud-t...

[Nathan Gesner]

@Mike S. That is not true!!! Please, read the official HUD statement and talk to some professional property managers before basing your reality on what you hear from media or discussions on a public forum with a heavy mix of amateurs.

HUD said you CAN discriminate against criminals and it CAN be the sole reason. So what did they say? They had two primary points: first, you shouldn't have a "blanket" discrimination against people with a criminal record and second, your discrimination should be justifiable.

In the first case, they are saying that you shouldn't treat every criminal as equal. There is a difference between a violent murderer and a kid caught selling Marijuana. There is also a difference between a criminal that got out of prison last year and someone that got out ten years ago. You should have a reasonable policy that considers the nature of the crime, the length of time they have had a clean record, etc. If you say, "I won't rent to anyone with a felony conviction" then you are likely involved in unfair discrimination.

The second issue is that your policy should be justifiable. Are you rejecting someone because they are a danger to your investment or to others? If a man has a criminal record but has been out for the last ten years, holds a steady job, has good Landlord references, etc., then there is no justification for denying him because he doesn't present a danger to your property or others. On the other hand, a criminal that was just released recently may still pose a risk of becoming a repeat offender and does pose a risk to your property and others. The fact is that vast majority of sex offenders will always be a danger which is why you are probably safe to say you will not rent to known sex offenders. But even then you need to consider the reason. There are cases of individuals placed on the sex offender registry for peeing in the park or an 18-year-old boy having a nude picture of his 16-year-old girlfriend. Again, you have to consider whether they are a danger to your property or others.

My question: how are we going to get the information to make this determination? I run a credit/criminal background but it doesn't give me enough information to make this decision in accordance with HUD guidelines. If I decide someone is NOT a danger and then they turn back to a life of crime, I may be liable for endangering people or property. It's a fine line and I hope HUD gives us the tools necessary to mitigate our risk as Landlords/Property Managers.