CHECKLIST: FAIR HOUSING ASSESSMENT

• Am I treating this applicant any differently because he or she is a member of a protected class group?
• Am I acting in any way that will potentially exclude as residents a higher number of minorities?
• Does what I am doing have a valid, nondiscriminatory business purpose? Could I accomplish this in a way that would have less impact on a protected class?
• Are there any written or verbal instructions from an owner or other authority stating or implying that apartments should not be rented to members of a protected class?
• Do I or do any of my employees falsely tell prospects that an apartment is unavailable? Could this be based on a prospect’s protected class status?
• Do I or do any of my employees in any way discourage renting an apartment because of an applicant’s protected class status?

QUALIFYING PROSPECTS

Once a prospect has filled out an application, it is time to assess his or her feasibility as a resident at the property. This process is called qualifying. Qualifying a residential prospect involves examining household income, references, and credit history. To qualify as a potential resident, a prospect must show the ability to pay rent and demonstrate acceptable prior performance as a renter.

To ensure an applicant’s ability to pay rent, most properties use the following guidelines:

• The yearly income should be around three or four times the amount of the annual rent
• Satisfactory references from two previous landlords are verified (e.g., on time payments and responsible behavior)
• Limits on the number of residents in an apartment are usually based on the number of bedrooms. In some states, HUD has said two persons per bedroom is “reasonable” but in California for example the rule is two person per bedroom plus one. As long as the number used by the landlord is not more restrictive than two persons per bedroom there is less chance that it will be challenged as discriminatory. This criterion is aimed at minimizing wear and tear on the apartment and assuring a quality lifestyle for the residents. Before establishing specific limits, check with local jurisdictions since they may have set maximum occupancy levels.