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Updated almost 2 years ago,
Fair Housing Question
Since I became a landlord several years ago, I have always use the same screening process. When I show a property, I have prospective tenants show up dispersed every 10 minutes on a given evening. The typical evening showing consists of around 3-10 different groups or individuals that show up over an hour or two. I have already prescreened them over the phone and they all meet my minimum requirements. Even through every one that shows up for the showing is technically qualified, if I don't have a good feeling about them, I will hold out and see if someone more qualified comes along for a showing later in the week. Once I have someone I feel good about, I do all my background/eviction checks and will rent to them if nothing surprising pops up. I have always thought this was a pretty solid way to do it and it doesn't break any fair laws. with that said, I listened to Brandon Turner's "The Book on Rental Property Investing" on a long drive the other day and he had a very different approach. He basically rents to the first qualified person that comes along and then he makes sure to send everyone else who applied a letter saying why he did not rent to them. Brandon says that he has found this is the best way to avoid being sued over discrimination accusations. This methods seems to me to make more work and give less control to the landlord.
Has anyone ever had any fair housing legal issues arise from a screening process similar to mine? What approach do you all take?