I’ve said it before, owning and managing real estate is challenging. Particularly residential real estate.
I hear it from my Property Owner and Property Manager clients. I experience it when I am involved in negotiating in landlord/tenant disputes.
Some of the pitfalls property owners have to watch out for are illustrated in a Wednesday, September 6 Department of Justice Press Release.
The Department of Justice issued a press release today concerning a lawsuit settlement reached with a Landlord and Tenant over Discrimination Charges brought by the Federal Government. You can review that press release here.
According to the press release, the Federal government alleged in its complaint filed in March 2017 that “in March 2014 defendant Appleby told a woman seeking an apartment for herself, her husband and their one-year-old child that the apartment buildings were “adult only.”
The complaint also alleged that defendants advertised their apartments as being in “adult buildings.”
Not good.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.
As stated by Acting Assistant Attorney General John M. Gore, of the Justice Department’s Civil Rights Division. “The Fair Housing Act prohibits apartment owners and managers from denying housing to families because they have children…We will continue to vigorously enforce the Fair Housing Act’s prohibition of discrimination against families with children.”
I’m speculating, but maybe the landlord didn’t know the law.
I wonder, did the landlord/property owner ever consult with legal counsel on its practices?
On a personal level, this type of practice of discriminating against families is unfortunate, especially considering we are in an affordable housing crisis.
In Kent County Michigan, it is reported that 2,098 school-aged kids are reported homeless.
There are some lessons to be learned for landlords, property owners, managers, and real estate investors.
Two takeaways from this news headline:
1. It is worth engaging legal counsel.
Issues arise. When in doubt, e-mail or call your attorney.
2. Residential Real Estate Investment is highly regulated.
If you are a landlord leasing out “residential” property as opposed to purely commercial property (business tenant), you are under much more stringent regulations. You must comply with Federal laws, like the Fair Housing Act and state laws, like the Michigan Truth in Renting Act, and Landlord Tenant Relationship Act. Make sure you are operating lawfully.
Questions? Comments?
email: Jeshua@dwlawpc.com
Twitter: @JeshuaTLauka
