As any homeowner can attest, Tenant screening It is one of the most important aspects of running a profitable business. Does not violate fair housing guidelines (Discriminating on the basis of age, race, sexual orientation, disability, religion, national origin, or family status) Landlords were generally free to exercise discretion about who they could rent to, all things being equal between candidates.
But a series of new housing laws in California, New York and elsewhere could do away with some of the previous red flags that landlords used to disqualify potential tenants. Here’s what you need to know.
Refusing to rent or eviction due to criminal activity
according to Assembly Bill 1418California landlords are refusing to rent to you or Evict People with criminal records. The “nuisance laws” were originally advertised as being enacted to combat crime and nuisances.
This law has been enacted by each local government to varying degrees, strong Support from police, prosecutors and politicians helps keep neighborhoods safe, especially in areas with drug and gang-related problems. But LA Times The study found that minorities are disproportionately affected and prevented from obtaining housing after their sentences are completed. offeredpreventing them from finding accommodation.
Limitations on the amount a borrower must pay up front
California Landlords No longer possible Charge multiple months’ rent deposit. Assembly Bill 12 In California, landlords are limited to charging up to one month’s security deposit. New York passed the same one-month bond bill in 2019. Varies by stateHowever, some states, such as Florida, do not impose any restrictions.
Having a low credit score won’t mean your application will be rejected.
Performing credit checks Traditionally, this was the way to screen tenants. It may be a wasted effort In some places. California Bill SB267 For those receiving government rent subsidies such as Section 8, prohibiting landlords/property managers from using an individual’s credit history as part of the application process and not offering applicants the option to provide alternative evidence of a verifiable legal means to pay their out-of-pocket rent.
under California lawLandlords cannot refuse to rent to a tenant if they have a Section 8 voucher, cannot state “No Section 8” or “No Vouchers” in rental ads, or require that tenants verify Section 8 eligibility before renting.
Landlords must have a valid reason not to renew a tenant’s lease
The law is similar to those recently adopted in California, Oregon, and Washington. In New York City, landlords can Good reason The law applies if a tenant does not renew their lease. In other parts of the state, local governments can decide whether to adopt it at their own discretion.
The exact criteria for “good cause” include non-payment of rent, illegal activity, if the owner is seeking to change the use of the apartment from residential to another purpose (such as commercial space), or if the owner wants to demolish the building.
Previously, New York City tenants had less protection if they lived in a single-family home or a building smaller than 100 square meters. Ten In the case of a unit, or if the landlord lives in the building (unless the landlord owns multiple other buildings).
The reasoning behind the new tenant protections
Skyrocketing rents and the end of coronavirus relief measures have led to a surge in homelessness. It jumped to 12% The number of homeless people is expected to reach around 653,000 by the end of 2023, the highest number since modern statistics began in 2007 and an increase of more than 70,000 from the previous year.
The numbers are all the more shocking because homelessness has been on the decline since 2012. HUD Secretary Marcia Fudge told The Associated Press that the high homeless numbers underscore an “urgent need” to support proven solutions.
“The biggest culprit is a lack of affordable housing and rising housing costs that leave many Americans living paycheck to paycheck and vulnerable to homelessness when a crisis hits,” Jeff Olivet, executive director of the U.S. Joint Council on Homelessness, told The Associated Press.
Homelessness surges in California and New York
California has taken a pro-development stance to combat the growing tide of homelessness, reducing the threat of anti-development lawsuits and avoiding restrictive zoning laws. approved Rental law requires tenants to maintain their homes and difficult Turn your back.
But its implementation has been controversial due to the state’s powerful landlord lobby, and Gov. Gavin Newsom has embarked on a two-pronged approach.Removing homeless encampments While promoting small house As a scalable solution.
And in New York, ADU (Adaptive Duo) Homelessness is on the rise in New York City The highest price in two yearsEstimated 4,140 people It is alive This is a 2.4% increase from last year’s 4,042 and the highest number since 2005. An investigation has begun.
While many see the problem as 70,000 migrants seeking shelter every night, New York City’s social services commissioner Molly Wasow Park said In an interview The New York Times The city said it has found no evidence of a “systematic increase in the number of unsheltered asylum seekers.” Mayor Eric Adams’ administration has made solving homelessness a priority since the pandemic caused homeless numbers to skyrocket, but it faces an uphill battle.
Final thoughts
In major cities across the country A sharp rise in homelessness And we’ve made renter protections and affordable housing key components of our legislation. So the housing crisis means that landlords who can provide affordable housing are in a much-needed position in cities across the country, particularly New York City and various cities in California.
meanwhile Section 8 Housing This has traditionally been a contentious issue for landowners, in part because Inspector’s While some landlords may cite costly repairs and renovations before an apartment can be approved, Section 8 provides guaranteed market rent, making it a potential win-win proposition for landlords who are familiar with the Section 8 process. But collecting tenants’ share is often another sticking point among landlords, with many writing it off in lieu of guaranteed income.
Section 8 has traditionally been the launch pad for small landlords’ investment careers: These apartments, often in affordable neighborhoods, can command high rents if they pass inspections. The downside is that landlords may not be as picky about tenants as they used to be, especially with new rental laws coming into effect. If your property is damaged by a Second 8 tenant: extremely difficult It’s difficult for landlords to charge the fee, so they have to pay out of their own pocket to pass another inspection and get the property rented out again — a hassle many landlords would rather avoid.
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