All Forum Posts by: Bill P.

@Trevor Fleck 

Welcome to BP. You'll find this is the best real estate investment and knowledge site on the planet. 

@Kimberly H. 

 Okay, but for clarification, my response was for the facts as they were presented.

But in your hypothetical situation, rents can't discriminate against a protected class. Fair housing laws dictate that housing must be made to everyone in a fair basis with no exclusions to protected classes. If a protected class gets favorable treatment, that is not necessarily discrimination. As stated in ANIMAL HOUSE, "all animals are equal but some animals are more equal than others."

To carry things further, if a white male, single of age 38 is charged a higher price than a black male, single of age 38; that probably wouldn't stand up in court as white people, under age 45 and single are not a protected class. However, if the black male received the higher rent for the same unit, he is a protected class and that would be different.

While fair housing laws are on the surface meant to treat EVERYONE fairly, it is a misnomer to believe that is true for every situation. Look at the wording of the law;

The Fair Housing Act prohibits discrimination in housing on the basis of:

• Race or color
• National origin
• Religion
• Sex
• Familial status (families with children)
• Disability

Under the Fair Housing Act, the following activities are illegal:

• Refuse to rent or sell housing
• Refuse to negotiate for housing
• Make housing unavailable
• Set different terms, conditions, or privileges for sale or rental
• Provide different housing services or facilities
• Falsely deny that housing is available for inspection, sale or rental
• For profit, persuade owners to sell or rent (blockbusting)
• Deny any access to or membership in a facility or service (such as a multiple listing service) related to the sale of housing
• Refuse to make reasonable accommodations in rules or services if necessary for a disabled person to use the housing
• Refuse to allow a disabled person to make reasonable accommodations to his/her dwelling
• Threaten or interfere with anyone making a fair housing complaint
• Refuse to provide municipal services, property insurance or hazard insurance for dwellings, or providing such services or insurance differently

Look at some current cases:

In Maryland, three African men were evicted when their landlord terminated the leases of black tenants and replaced them with white tenants. In California, a disabled white woman who uses a guide animal was refused a rental unit in an apartment with a "no-pets" policy. In Ohio, a Hispanic woman was denied housing because of an unlawful "no kids" policy.

Notice that the discriminated person was a member of a protected class. Fairness is not a word that is in reality fair. Just my honest and humble opinion.

@Kimberly H. 

 No, what I am saying is that it isn't discrimination simply because an inherited tenant is paying half-rent. Since the lowered rent is to her benefit, it doesn't discriminate against her. And since the woman was inherited at this rate, there is no law dictating an increase simply because owners change. Other tenants can't claim discrimination either as her rent was set by a prior owner and does not become comparative for other future tenants.

Yes, I stand corrected, that is the website address.

@Kimberly H. 

No, as the low rent actually benefits an inherited protected class

@Jeffrey Bailey 

 I think that @Patrick L. has some sound advice. If the numbers work for you, take solace in the fact that it decreases your vacancy rate. If you need to raise the rate, do it over the next few years that helps both parties.

But make sure you have all lease documents prior to closing so you know what is going on. Once the place is yours, make an appointment and talk to her about the situation. Make your decision based upon you findings but be good to yourself and your ideals as you are the one (not us) that has to deal with the consequences of your decision.

@Dave Lin 

Use a service like smartmove.com and allow them to pay them the funds directly when they enter their application. You'll get the results quickly and the only thing they will have to give you is basic information and an email address. Everything else is automated. You can set up an account for free. I think it is also a BP referred resource; see the link under resources.

@Shannon Trivett 

Sometimes bad things happen to good people, that's just part of life. However, since your total charges will be mitigated to under $700 after you apply the security deposit, you will spend more going to court chasing a small amount of money. I believe the better course of action is to simply set up a payment plan with 0% for 12 months and have them pay you the remaining balance over time. It's not a perfect plan as they will probably fall behind but every dollar that comes in will reduce your balance. Although you can get a judgment in court for $700, it doesn't seem like the road to travel if there are other ways. You can either mail them monthly statements or give them a coupon book; I've done both and the coupon book works best for me.

PS- I own property in LLCs in Ohio and must use an attorney for evictions.

Yes, since it is an entity that may have other members. You can only represent yourself. Now with that said, some enlightened states allow you to represent a single member LLC if you are the single member. But I doubt that is true in NJ since it is entrenched with special interests at the state level.

@Eric Giovannucci 

If I am reading you correctly, you now live in CA but have property in TX. One of your properties is wanted by this woman but she needs to sell her condo first. If that is the correct understanding, I will tell you to pursue this opportunity. You need to find out an acceptable price that you can pay her subject to her being able to get a loan to buy your property. (You narrative didn't say what your SFR is worth) Make sure you tie the two transactions together as you don't want to buy her property without your property being purchased. If the numbers work, then move forward. The right number to her seems to be somewhere between 35K and 65K. You are in an envious position as you will be making some profit (I assume) from the sale of your SFR so you can offer her something closer to the top end of that range and close the deal.