As a broker of a property management firm, I am asked by many residential landlords if they have to rent to college students. The short answer is no, however there are many circumstances that may immediately change this answer to yes. As a landlord, it is imperative to always understand and know your legal obligations as well as tenants’ rights as defined in the Fair Housing Act (I strongly recommend consulting an attorney for this). Penalties assessed against landlords for discrimination are very serious and the Fair Housing Act should not be taken lightly. You can learn some Fair Housing basics at the HUD website: www.hud.gov.
For discussion’s sake, if a landlord has the legal right to deny tenancy to college students should he or she do so? This is a very interesting topic, as landlord’s positions vary. I believe landlords should not make a blanket policy to never rent to students. Every applicant, including students, should be screened equally for the landlord’s benefit, regardless of the tenant’s rights. Years ago, my company was engaged by a landlord because they were having issues with their tenants not paying rent. The landlord was so upset and could not understand why he was having a problem collecting his rent as he believed he rented to a very qualified couple, a couple he said was “of substance.” After I looked through the tenant’s information, I found out they were professors with more than adequate income in relation to the rent, but apparently they were having some challenges in the financial and personal area of their lives. I advised this landlord that he had made the common mistake of discrediting the tenant’s questionable screening results because on the surface everything appeared sound.
On the other hand, I have rented to many young students working entry-level jobs with short employment histories. I have also rented to students whose outward appearances alone could cost them a chance, only to have them be dream tenants. Why? Because they passed a thorough screening process. The bottom line is to treat every applicant the same: run a credit report, criminal background check and verify their income to ensure they are capable of paying the rent. If they pass the screening process, rent to them – regardless whether they are students.
Now, we do have to acknowledge that sometimes the college student lifestyle can be construed by neighbors as disruptive; therefore, landlords must have an open discussion with students about this prior to leasing. Why? Young people are not always bad tenants but many of them do seem to live life at 2 a.m. I have found most students are oblivious about this being a disturbance. To the student’s defense, most have very little life experiences and goodness knows we have all been there. Landlords, do not be afraid that this conversation might offend them, as it is far better to offend them prior to signing the lease than to offend the neighborhood. In having this conversation, you could end with great tenants and a problem-free lease term
By Mike Hutchins