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  1. #1
    janet637 is offline Junior Member
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    Discrimination in Rental Rate Increase?

    What is the name of your state? CA

    I have a multi-unit income property in Glendale, CA. (No rent control)

    I have one unit that has a higher monthly rental rate than all the other units of similar size/condition because their annual rental rate increase is higher than other units. This is because they do not have a security deposit.

    For the other units (all of them have security deposits), their rental rate increases are also variable based on timely payment of rent, if other tenants complained about them, etc.

    Is this considered discrimination and is this legal? Thank you for your help.
  2. #2
    Alaska landlord is offline Senior Member
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    The key to avoiding a discrimination suit is to have established written rental criteria. What you do for one applicant you must also offer to all applicants would be a good policy. That being that case, rents may vary according to the condition of the unit, what the rental rate of the applicant was at the time they occupied the unit and expenses you have incurred due to state/city/county charges.

    In my opinion you are ok but, then again I'm not the tenant trying to get you. The fact that you have no Sd should set things right if questioned.
  3. #3
    ENASNI is offline Senior Member
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    Wait a sec... I will look outside.
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    oY I said I wouldn't do this, I lied I am a hypocrite

    Ask Baca,
    Instead in your place you can rent to whom you please you just cannot discriminate to those whom you do not on race or creed in cretain terms read your landlord lingos. Then read whatever makes you human and thinking. .
    Renting is a hard thing to prove discrimination against, which makes it look sleazy. Which you kind have just did. Rent to those who need housing Dude or Dudette. Just roof the roofless. sheesh.


    Tell Baca Hi, then Bye

    Sorry if you are just asking a simple question.. I am just peeved about this sitch in another situation and taking it out on you.

    Live long and prosper.. . So very very sorry, unless you are a rich MF trying to turn out somebody that has money but no name.


    But there I go again.

    Sorry.
    I hate hollywood.
    Last edited by ENASNI; 07-13-2007 at 01:51 AM.
  4. #4
    Alaska landlord is offline Senior Member
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    Canít sleep as usual.

    Is it illegal? No

    Is it discriminatory? Yes

    Is it illegal discrimination? No

    Can you get away with it? Yes but you better document, document, document.
    And outline your criteria on how you base your decisions.

    Personally, micro managing is too much of a hassle. I would just do across the board increases as needed.
  5. #5
    CA LL is offline Senior Member
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    Seems to me a rather "lazy" (don't take as an insult!) alternative to creating and enforcing terms of your agreements.

    LL's should not play games with monthly rent amounts to "avoid" dealing with issues.

    Why no SD on the unit in question? If inherited, why not simply offer an upgrade of some sort and then give change of terms that they must pay the SD (assuming you are using MTM rental agreements). Why would you allow any tenant to stay w/o a security deposit in today's market? I inherited some tenants with very low SD's...one or two hundred dollars...I eventually offered them new carpet and collected $400 more SD (still under everyone else's but indeed better for me).

    Why aren't you dealing with the "real" issues of the others...if they don't pay on time, have complaints against them, etc? Playing with the rent as "revenge" is not a smart business decision NOR is it recommended.

    About the only rental variances that are widely acceptable are seniority...if people have been in a unit a LONG TIME and therefore their amenities are older and they have a great long history as good tenants..keeping them under market makes sense. The rest of the reasons you cited do not IMO.

    I hope you will consider changing the SITUATIONS rather than the rent for everyone.
  6. #6
    Cvillecpm is offline Senior Member
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    Cool

    Tenants w/o deposit present a HIGHER risk of financial loss to the property owner than those tenans WITH deposits...increasing their monthly rent is not housing discrimination.....it is a financial REALITY for that tenant.
  7. #7
    OHlandlord is offline Member
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    As long as the reasons for the higher rent are good business reasons and not for trying to discriminate against one of the protected classes, it should be OK. (Do document the reasons.) Having no deposit from them increases the risk = higher payment. Or perhaps that the tenant has a worse credit history and your state may limit the amount of deposit you can accept. Additionally, you can charge higher rent on identical units because one unit may have newer carpet/paint/flooring, a better location/floor, newer appliances, etc. It may also be caused by a tenant that has a newer lease. An older, well-established (good) tenant, may have been allowed to get by without an increase this year. Each tenant does sign an individual lease, thus the terms can vary. You can allow one to have a pet and another not. As long as the choice is not discriminatory, and is based on business.
  8. #8
    CA LL is offline Senior Member
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    Quote Originally Posted by janet637 View Post
    For the other units (all of them have security deposits), their rental rate increases are also variable based on timely payment of rent, if other tenants complained about them, etc.
    This is where I really think you need to focus more on the ISSUES rather than how much you charge them for rent...deal with the problems don't just sweep them under the rug with more money.

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