Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: James M Smith

James M Smith has started 6 posts and replied 35 times.

Post: Rental Discount for being Law Enforcement/Military

James M SmithPosted
  • Investor
  • Mansfield, TX
  • Posts 35
  • Votes 9

@Dennis M.  Ok, got your point, however, I am asking about the legality per WA law. I understand your opinion is its a bad idea and I respect that you are entitled to that opinion.  Do you mind venturing to respond to the origional question?

@Craig Dell Thanks for your opinion.  Your though is in line with mine and since I stack up homes in the same neighborhood I view it as cheap insurance.  The secondary benefit is that I keep a pretty decent rep with my local COPs for drive bys on bad actors in the neighborhood etc.  Care to venture an answer on your take of FHL related to the origional question and whether or not it could be considered a violation to offer the discount to military?

Post: Rental Discount for being Law Enforcement/Military

James M SmithPosted
  • Investor
  • Mansfield, TX
  • Posts 35
  • Votes 9

@Jack P. Excellent points!  First, my original question was more of a theoretical discussion point than asking for advice about offering one as I dont look to others to make my decisions for me (as I am sure you dont which is why we are both in RE when most think we are crazy).  I have appreciated the different points of view and actually think I will got with Nathan's suggestion from above.  

Second, My typical rents are all slightly above other homes in the areas because we always provide a slightly better than market finishes but I do not advertise any discounts at all and likely never will so it is not a marketing gimmic.  

Third, for me it is a personal way to say thank you to LE/Military personel who many times don't receive gratitude for their professions and in some cases receive hostility mearly for wearing a uniform.  My family has a proud Military Service history and I have close friends who are LE.  This is a small token for me to offer directly to a person, potentially since they have to pass all the same requirements as any tenant.

Finally, after pondering on the other comments about "just dontate to a tax deductiable charity instead" I have realized there is no difference in the bottom line.  If I donate 25 per month (300 per year) it comes off the top and if I instead give that same amount as a discount in rent it means it has the same potential tax benefit, right?  What am I missing that makes donation better than a discount other than not being able to see the personal impact of the "charity"?  Different strokes for different folks...

Thanks again for your input Jack!

Post: Rental Discount for being Law Enforcement/Military

James M SmithPosted
  • Investor
  • Mansfield, TX
  • Posts 35
  • Votes 9

@Nathan Gesner This honestly sounds like the best of both worlds and a great idea!  I think this will be what I implement going forward but instead of waving it I will provide it as a discount on 1st months rent considering mine is $40 per person (paid to the online Credit/Background provider).  This was the type of creative solutions that make BP such a great community.  Also, given you are in the PM business any thoughts on the original question of whether or not its against Washington's FHL to offer a discount to a person based on Military service, or any other state with such a stipulation in their local FHL?  Thanks again!

Post: Rental Discount for being Law Enforcement/Military

James M SmithPosted
  • Investor
  • Mansfield, TX
  • Posts 35
  • Votes 9

@Dennis M.  Foolish and Unprofessional sounds a little harsh, especially considering the number of large businesses that offer similar discounts, but I appreciate your sentiment. Thanks for voicing your opinion!

Post: Rental Discount for being Law Enforcement/Military

James M SmithPosted
  • Investor
  • Mansfield, TX
  • Posts 35
  • Votes 9

@Account Closed For me $25 per month off a nearly $2k monthly rent is of little consequence.  And since I often have more than one home in a neighborhood I view it more as investing in the possible reduction in crime due to a squad car being parked in the neighborhood.  However, I did see another post somewhere else where someone was considering offering "free rent" to police officers on the condition that they drove their squad cars home in the appt complex.  To me that is extream but $25 a month on a slighly above market rent isn't too much of a burden and I am not too concerned with it impacting my bottom line or the possibility of turning my porperty into a charity.  Thanks for your input though!

Post: Rental Discount for being Law Enforcement/Military

James M SmithPosted
  • Investor
  • Mansfield, TX
  • Posts 35
  • Votes 9

Hi Anthony Wick, Except there isn't a fair housing law protecting short term vs long term tenants whereas in Washington State there is a Fair housing law specificly for Military service.  I understand that the intention of the law was to prevent someone from refusing to sell/rent a home to a Vet.  My question is that per Fair Housing Laws in Washington State is offering a discount based on military service grounds for discrimination because the law is on the books.  Not offering the same rate (i.e. full price) because they dont have military service is offering a difference in rate based on military service (even though it was not the original intent of the law). 

Mtg Lending is also based on Fair Housing so let pose an example that is somewhat different.  If I am a lender who focuses on helping Women finance their dream homes.  To make things easier for them I offer any Woman a 1% discount on their mortgage rate.  Knowing that FHL protections were put in place, in part, to ensure that Women (and other groups) were not discrimated against  based on gender.  However, in this instance a Man could sue under FHL due to descrimination, couldn't they?  I see this as the same thing for Washington States' FHL including Military Service.  Maybe I am someone who just reads too much into things but it was an itch I had to scratch and was wondering if someone had experience personally or knew of a case studdy or actual civil case.  Thanks for your input! 

Post: Rental Discount for being Law Enforcement/Military

James M SmithPosted
  • Investor
  • Mansfield, TX
  • Posts 35
  • Votes 9

JD Martin, I do not advertise any discounts period but it is good advice to be reminded of (so thank you for calling that out).  I do not even mention the discount until I have an application in hand and confirm they are in one of my "discount" occupations and of course I am not going to discuss that with someone who I am going to deny even if they are LE/Vet.  Just thought it was interesting that potentially, it seems to me, that in Washington offering that discount would be a violation of their local fair housing laws which to Chris' point above would be contrary to their initial intention.  Thanks again for your input and it is interesting to hear your input on Utilities, learned something new today!

Post: Rental Discount for being Law Enforcement/Military

James M SmithPosted
  • Investor
  • Mansfield, TX
  • Posts 35
  • Votes 9

@Chris Grogan, Retail isn't subject to Fair housing laws and in my neck of the woods it is the same because my local fair housing laws do not have a special provision for Military service/history.  Thanks for your input

Post: Rental Discount for being Law Enforcement/Military

James M SmithPosted
  • Investor
  • Mansfield, TX
  • Posts 35
  • Votes 9
Originally posted by @Simon Daniels:

 Hey @Simon Daniels, While I agree of the intent I disagree on how the law could be interpreted. By stating that you cannot discriminate based on someone's military history they include having a lack thereof... By offering a discount to a Military Vet you are treating 1/2 the equation differently then the other which by definition of the law is discriminatory. Keep in mind legal doesn't always mean right.

Just like saying you cannot discriminate based on Gender is designed to protect a woman’s right to lease/buy a home, we are not The Republic of Gilead after all, but this means you cannot only sell it to women or provide better terms to women or that would be discriminatory against men, right?

Please know, I recognize this is an academic discussion (for now) and am just interested in hearing and debating other landlords’ opinions on the matter. I offer the discount mentioned above but am in a State that doesn’t have a protection for Military Service. However, upon reading that Washington had such a rule on the books I went ahead and did another review of my states fair housing laws to confirm.

Thanks for your input and I would love to know what you think about my retort/ideas above and if they made sense to you (i.e. did I explain the idea clearly).

Post: Rental Discount for being Law Enforcement/Military

James M SmithPosted
  • Investor
  • Mansfield, TX
  • Posts 35
  • Votes 9

So was reading this little known book, "The Book on Managing Rental Properties" by this no name hack Brandon Turner... ;) And noticed in Chapter 4 it mentioned that military history is part of Washington's Fair Housing laws.... This got me to thinking, which is dangerous.  If I were to invest in Washington does this mean I cannot offer discounts for someone who was a military vet in recognition of their service?  I believe the answer is yes because it descriminates against those without military service, which is the flipside of the coin, but wanted to confirm.

TIA,

James