Did you know that if you are a landlord (herein meaning a man
or woman) your rental investment is a commodity? After all, the purpose of having a
residential unit to rent is to make money.
However, many landlords think of their investment unit as a personal possession. It is not.
Once a lease is signed, the possession of the commodity belongs to the
tenant for the term of the lease. Even when a lease is not signed, an offer to rent falls under Fair Housing Guidelines.
I am using the word ‘commodity’ to bring to the attention of
everyone the laws of Fair Housing. The
state of NJ has laws in place that are more protective than even Federal
guidelines.
HOW TO CHOOSE A TENANT:
When a landlord is choosing a tenant, there are only a few
measures of risk to assess and none of them are personal.
1. Can the tenant pay? The source of the payment is
inconsequential. It can be child
support, cash in the bank or a steady job.
Money is green. If the tenant can
demonstrate an ability to pay, the means (so long as they are legal) can’t be
critiqued.
2. Has the tenant demonstrated a willingness to
pay? This can be determined by running a
credit report on the prospective tenant.
The NJ Tenant’s Rights Book addresses a landlord’s ability to deny
housing based upon a poor credit history.
It does not indicate that a lack of credit is a factor.
3. Is the tenant able to enter into a
contract? If the tenant is of legal age
and of sound mind, the tenant is a viable candidate.
These are all the measures a landlord can use to select a
tenant.
THE LANDLORD/TENANT INTERVIEW
Landlords need to be very careful about the wording they use
when interviewing a tenant. For example,
it’s not okay to assume a twenty-something year old, single tenant will have
parties and make noise. This is a
presumption that discriminates against an age group.
·
It is not okay to deny a single mom and children
housing over a presumption the children will be loud or because the thought of scampering feet overhead troubles you.
·
It is not okay to dismiss tenants because of
sexual orientation, marital status or the size or make up of a family.
·
It is not okay to accept a married couple over a
couple who is co-habitating, or a person who is single.
·
It is not okay to select fewer tenants per unit
because of ‘wear and tear’ if the unit is capable of the capacity.
It is okay to give a consistent, factual message to EVERY
applicant that is relevant to the lease or town ordinances.
For example, it’s okay to tell EVERYONE who is interested
that the town has a noise ordinance if one exists. It is not okay to simply tell one age group
under a presumption of behavior.
It is okay to understand and relay the town or state fire
code when it comes to occupancy per square footage.
FAIR HOUSING AND TENANT’S RIGHTS
The state of NJ makes Fair Housing guidelines very clear
through the Attorney General’s Memorandum.
Anyone who offers housing for sale or rent falls under these guidelines. A Landlord is obligated to treat the rental
unit as the commodity it is- and personal preferences of a tenant are not
allowed.
It is a real estate agents obligation to terminate a listing
when he or she suspects the landlord is not willing to abide by Fair Housing
guidelines. Agents take a sworn oath
and their licenses are on the line. In
any event, the objective of the agent is to secure housing for people at large.
If you are a landlord or tenant, it is important to
understand your rights and obligations.
HIRE A REAL ESTATE AGENT
Hiring a real estate agent to rent the space is a smart
idea. It creates a third party to find
tenants via the multiple listing services, which is accessible to all. Your agent will run a credit report on the
prospect, verify employment (or assets to pay) and arrange an interview for
you. It takes the pressure off you, as
a landlord and enables a broader scope of exposure to the
listing. Further, in most instances, the
tenant pays the real estate commission; not the landlord. Commission in NJ is negotiable.
IF YOU NEED LEGAL ADVICE, ASK AN ATTORNEY
I am not an attorney, this information is not legal advice, and
it is always wise to check with your own attorney to clarify any questions you
have. You can and should also check out this
important booklet which must be given to any prospective tenant and should be
read by all tenants and landlords.
If you have a home or
apartment to rent in northern NJ, or if you are looking to rent, please give me a call. I would be happy to help.
Annmarie Cristiani
Sales Associate
RE/MAX Traditions Real Estate
201-815-7861
Sales Associate
RE/MAX Traditions Real Estate
201-815-7861
