Investor · Brooklyn, NY · Member since 2013 · 254 posts · 28 votes
Lately I am getting very nervous about every little details. In NYC, tenants have more rights than in most other states.
Can someone tell me if it is against the law to ask for the following in the advertisement when I am looking for a tenant?
1) Proof of funds - bank statement for the past 3 months showing a bank balance of a minimum of 6 times the monthly rent.
2) Proof of Gross Annual Income - Household annual gross income must be at least 3 times the annual rent.
I am by no means discriminating against any protected class, all I want is to rent the unit to someone who can afford to pay the rent on time.
I read about a law that is called DISCRIMINATION AGAINST SOURCE OF INCOME. I couldn't find the article any more, but it sounds like landlords are not allowed to discriminate against people who receive unemployment insurance, among other sources of income.
So in my ad, instead of saying PROOF OF EMPLOYMENT, I mentioned proof of Gross Annual Income, I suppose if I word it that way it will not be discriminatory against source of income, am I correct?
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
13y
You can't discriminate against the source of income with respect to government assisstance, social security, section 8, welfare or disability income, you can discriminate concerning the likelyhood of receiving income, say child support for a 20 year old student if income ceases in a few months at 21. As for advertising, I have no idea why you have to say anything other than qualified income and employment being satisfactory. Why explain more? I would think the more you try to explain the more questions would be asked in the minds of people reading your ad, like why is this landlord so different? Why not just stay with the norm and keep the flexibility to select who you want through your process?
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
13y
Bill makes great points, in your advertising, simply stipulate that applicants will be required to prove ability to pay.
Is asking for proof of employment and bank statements illegal or discrimatory? No, unless you did what Bill pointed out.
As a landlord, you have the right to due diligence to see if an applicant can perform. As a seller, you have the same right. If the buyer or applicant in your case does not want to produce it, that is their right too, of course they would be informed that their application would be denied based on that failure to provide documentation.
Also, you wil want to make sure that you ask for the same things for all applicants. For instance, you dont want to ask for pay stubs from one person and not the other as the first could then argue discrimination. Be consistent.