Choosing the Best Tenants: Things You CAN Discriminate Against

Discrimination is kind of a dirty word for most people, conjuring up negative emotions about bias or unfairness. And most of the time, this reaction is justified; it’s NOT okay to discriminate against people.

Right?

Well yes, for the most part. Denying someone something because of their skin color or religious beliefs is fundamentally wrong, and it has no place in this country. The same is true when it comes to rental real estate, and there are certain laws in place to protect people from this type of discrimination. Obviously, this is a good thing and we should all be grateful we live in a country where these regulations exist.

However, as a property owner or landlord, there are certain times where you can - and should - discriminate. Protecting your property and interests is your #1 priority, and circumstances will arise where you have to make hard choices in order to do this.

Here are some examples of things that it’s okay to discriminate against:

• Smoking - There’s no law saying that you have to make your rental until available to smokers. True, you’ll likely lose a sizeable portion of the rental market if you institute a smoking ban at your property, but you won’t have to deal with the increased risk of fire or the aftermath of having a smoker in your home, either. And by aftermath, I’m talking about the inevitable odor and cleanup that must occur after they move out. Cigarette smoke has a way of lingering, and it’s a real turn-off for non-smokers who may be interested in your property one day.

• Pets - Like smoking, pets are another lifestyle choice that can cause odor and require extra cleanup after their owners move. However, many people have pets, and enacting a prohibition against furry family members will drastically reduce your tenant pool. Many landlords are willing to take this chance, though, because they feel the potential for damage is just too great. Others take a more moderate approach, allowing pets but implementing certain rules about size, type, or quantity.

• Tenant turnover - When reviewing a potential tenant’s rental history, be sure to look at how many times they’ve moved in the last 5 years or so. If they have a high turnover rate (i.e, they’re always moving), this should be a major red flag. Tenant turnover is costly to property owners, and you’re much better off finding a tenant who has a history of staying in one place for a longer period of time.

• General sloppiness - Here are things that I always take notice of when I meet a potential renter: their appearance, their punctuality, their mannerisms, the inside of their car. Now before you go assuming that I’m a judgemental stalker, hear me out. All of these are indicative of what kind of renter they’ll be and whether they’ll respect your property or not. If they show up late, in a trashed car, looking unkempt or with dirty clothing, chances are they’re not going to take care of your place like you’d want them to. Of course there are exceptions to this rule, but in all the years I’ve been in this business, there’s a reason I pay attention to these factors.

Bottom line: it’s okay to be choosy when it comes to renting your property out. You SHOULD be choosy. You want a high quality tenant who’s going to take care of your place and not cause you a bunch of stress. So yes, by all means, discriminate - just make sure you’re doing it within the confines of the law.