You’re a landlord and you receive an application for one of your vacant units. You get excited, looking forward to the income, but then you learn that the applicant has a criminal record. What do you Read more...
You’re a landlord and you receive an application for one of your vacant units. You get excited, looking forward to the income, but then you learn that the applicant has a criminal record. What do you do?
Maybe it matters what the crime is. You might feel comfortable renting to a nonviolent offender convicted twenty years ago. Maybe mental illness was involved and the convicted individual has demonstrably undergone successful treatment.
But what about a sex offender or someone recently convicted of running a meth lab in their last residence? Obviously the type of crime and amount of time since the conviction will impact your perception of risk. So what do you do? You want to protect your property and other tenants.
Landlords must be careful to ensure that their reaction to these situations is not perceived as unlawfully discriminatory. While no state or federal law prevents discrimination that solely targets criminal offenders, it is illegal for the practice to discriminate against protected groups such as racial minorities, regardless of intent.
On April 4th, 2016 the U.S. Office of Housing and Urban Development (HUD) announced that their interpretation of the Fair Housing Act is that any policy or practice that is “facially neutral” but has a “disparate impact on individuals of a particular race, national origin, or other protected class” is “unlawful”, unless the policy or practice is “necessary to achieve a substantial, legitimate, nondiscriminatory interest”. This is where the type of offense and the period of time since the conviction come into play. While refusing to rent to an arsonist who burned down his last apartment building can be considered legitimate, discriminating against someone with a petty theft conviction may be more difficult to justify. Especially if it turns out that you are turning away members of an otherwise protected class and you don’t have uniform standards.
The last requirement is an evaluation of potential, less discriminatory, alternatives. In the event a policy is challenged and upheld as lawful, HUD or the rejected tenant can examine alternatives. The landlord does not need to search for alternatives to their legal policy—this burden falls on HUD (or the potential tenant to recommend a HUD-approved policy). But change could be prompted if HUD finds the necessary interest of the policy “could be served by another practice that has a less discriminatory effect”. This could be a mandate to include an “individualized assessment” that allows the potential tenant to prove good tenant history since the conviction, evidence of rehabilitation, etc. This may not change the decision for the individual appealing the rejection of their application, but in theory it would make the policy less discriminatory over time. And in October of last year HUD allocated $38 million to more than 100 groups to fight housing discrimination. Legal challenges to these policies should be anticipated.
So, unless you end up rejecting candidates in proportions that match your population, you could wind up on the wrong end of allegations of illegal discrimination. Thus, it is important to have a well thought out, comprehensive, consistent standard for these situations. And, if in doubt, contact legal counsel specializing in these issues.
In summary, here are the rules to keep in mind to best protect yourself:
Consider the nature of the crime
Consider how long it has been since the conviction
Apply your standard consistently—exceptions are risky!
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Recently, I received an email from a broker-partner of ours at Prudential California Realty.
Last November, Everything I thought I knew about myself changed abruptly, and what others perceived about Read more...
Recently, I received an email from a broker-partner of ours at Prudential California Realty.
Last November, Everything I thought I knew about myself changed abruptly, and what others perceived about me shifted, too. I had been conducting my personal life in an artificial way - as if detached from the values my upbringing had taught, and that I should have embraced.
The physical pain from that car accident has long healed. But the pain in my soul is more complex and unsettling; it has been far more difficult to ease - and to understand. But this much is obvious now: my life was out of balance, and my priorities were out of order. I made terrible choices and repeated mistakes. I hurt the people whom I loved the most. And even beyond accepting the consequences and responsibility, there is the ongoing struggle to learn from my failings.
At first, I didn't want to look inward. Frankly, I was scared of what I would find - what I had become. But I'm grateful that I did examine my life because it has made me more grounded than I've ever been; I hope that with reflection welcome wisdom. Golf is a self-centered game, in ways good and bad. So much depends on one's own abilities. But for me, that self-reliance made me think I could tackle the world by myself. It made me think that if I was successful in golf, then I was invincible. Now I know that, no matter how tough or strong we are, we all need to rely on others.
Slowly, I'm regaining the balance that I'd lost. My healing process is far from complete, but I am beginning to appreciate things I had overlooked before. I'm learning that some victories can mean smiles, not trophies, and that life's most ordinary events can bring joy. Giving my son, Charlie, a bath, for example, beats chipping another bucket of balls. Making mac and cheese for him and his sister, Sam, is better than dining in any restaurant. Sharing a laugh watching cartoons or reading a book beats channel-surfing alone. Some nights now, it's just me and the kids, an experience that's both trying and rewarding. Probably like the experience a lot of families have every evening around the world.
When I first came back off golf this spring, after taking a necssary break, I was worried about how fans would treat me. But they've been kinder and more supportive than I ever imagined possible. That's true aways from the golf course, too. When I go to the store, or to work out, or to grab lunch, I've been amazed by the considerate, encouraging words I hear. I've realized that those sentiments are not merely courtesies but generous expressions of compassion for which I'll always be thankful.
I have a lasting gratitude to those who stood by me in ways large and small. Unfortunately, opportunists are trying still to cash in on my troubles, no matter how irresponsible or ridiculous their claims may be. In many cases, I've never even met these people. But there's no way I can dispute each lie without provoking more. Besides, everyone has probably heard more than they ever wanted to about my private life.
I can never truly repair the damage I've done, especially to my family. But I can keep trying. What endures in the record books are the achievements won through competition. What endures in our actual lives is the love of our family and the respect of others. I know now that some things can and must change with time and effort. I'm not the same man I was a year ago. And that's a good thing.
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One of the nice things about being in real estate is we are generally treated as independent contractors for tax purposes and work hour requirements.
Legally, of course, the California Bureau of Real Read more...
One of the nice things about being in real estate is we are generally treated as independent contractors for tax purposes and work hour requirements.
Legally, of course, the California Bureau of Real Estate always treats us as employees of the broker. From 30,000 feet this means that the broker must reasonably supervise any salespeople working for the broker and the broker is generally responsible for a wrong done by the salesperson while the salesperson is acting under the scope and course of employment.
However, for tax purposes and work hour requirements - what I am attempting to talk about in this article - salespersons can be treated as independent contractors not employees. This generally means:
1. Salespersons are independently licensed.
2. Compensation is based on sales made, not hours worked.
3. There is a written contract that states that the salesperson will be treated as an employee for tax purposes.
Recently, due to the California budget crisis, there was a proposal to have real estate brokers withhold 3% from commissions paid to salespeople.
Yesterday, we got word from CAR that this is not going to be the case.
Real estate agents that are taxed as independent contractors get to keep all the commissions due them and the brokers are not required to withhold this 3%!
The world is once again in balance!
PS: Check out our YouTube video of this here
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The following is from the California Department of Real Estate's publication entitled "Guide to Unlicensed Assistants". This is valuable information as many of you may be considering working for an experienced Read more...
The following is from the California Department of Real Estate's publication entitled "Guide to Unlicensed Assistants". This is valuable information as many of you may be considering working for an experienced real estate salesperson as an apprentice or assistant prior to you actually obtaining a license.Here is an excerpt from the section on "Open Houses""With the principal’s consent, assisting licensees at an open house intended for the public by placing signs, greeting the public, providing factual information from or handing out preprinted materials prepared by or reviewed and approved for use by the licensee, or arranging appointments with the licensee. During the holding of an open house, only a licensee may engage in the following: show or exhibit the property, discuss terms and conditions of a possible sale, discuss other features of the property, such as its location, neighborhood or schools, or engage in any other conduct which is used, designed or structured for solicitation purposes with respect to the property."
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Let's face it. Being on commission can be tough. Having the support of your family can be key as you start your career in real estate. Explain to them WHY you are choosing this career path and what you Read more...
Let's face it. Being on commission can be tough. Having the support of your family can be key as you start your career in real estate. Explain to them WHY you are choosing this career path and what you plan on doing so that you don't fail.Get as much training as you can in the beginning. Finally, most businesses fail because they don't have enough customers. What are you going to do to make sure you don't fall in this category?
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