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Updated over 5 years ago on . Most recent reply

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Chuck H.
  • Rental Property Investor
  • Houston, TX
20
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WA Supreme Court upholds Seattle’s first-come, first-served law

Chuck H.
  • Rental Property Investor
  • Houston, TX
Posted

https://www.seattletimes.com/seattle-news/politics/washington-state-supreme-court-upholds-seattles-first-come-first-served-law-for-renters/

The Washington state Supreme Court has upheld Seattle’s first-come, first-served law for renters, believed to be the first of its kind in the country.

In a unanimous written opinion published Thursday, the court rejected claims by landlords who said the groundbreaking law amounted to a regulatory taking of private property and who said it violated their due-process and free-speech rights under the state Constitution.

Most Popular Reply

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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
41,072
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28,065
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied

Definitely government intrusion and not surprising that a major city is dictating what a private citizen can do with their property. If you haven't been paying attention the last 100 years, please know that this will continue. And what happens in Seattle or San Diego or New York will eventually make it's way to the small towns.

As a private Landlord and Property Manager, this practice makes sense. If you set the criteria necessary to qualify for your rental and someone meets that criteria, why wouldn't you rent to them? Holding out for someone that's potentially better is unfair to the original applicant that already met your standard.

It also protects the Landlord from claims of discrimination. Example: A black, single mother applies for your apartment on Monday at 9am. She has poor credit but manages to squeak through and is approved that same day at 3pm. At 3:05pm, a white male submits an application for the same rental. You screen him and discover he is about the same as the single mom but has a significantly better credit score. You approve the male and tell the female she's denied.

Even if your screening were based solely on the data, the single mother could claim you discriminated against her because she is black or because she is a single mother, both protected classes. It doesn't matter if it's true; you would have to prove your case in court and you would have a hard time doing so because she met your criteria and should have been approved.

If you are in a state that allows you to choose the "best" applicant instead of "first come, first served" then you should clearly disclose that to your applicants up front and heavily document your decision to protect yourself from any claims of discrimination.

Personally, I think it's best practice to offer the rental to the first qualified applicant.

  • Nathan Gesner
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