This month the US Department of Housing and Urban Development told landlords across the country that a snobbish attitude towards criminal applicants will result in an legal butt whuppin, courtesy of HUD’s attorneys.

HUD’s General Guidance, published this month, informs landlords that it’s illegal to automatically deny all convicts.  HUD’s reasoning is that it’s racially discriminatory, even if that’s NOT the landlord’s intent.

Across the United States, African Americans and Hispanics are arrested, convicted and incarcerated at rates disproportionate to their share of the general population. Consequently, criminal records-based barriers to housing are likely to have a disproportionate impact on minority home seekers. While having a criminal record is not a protected characteristic under the Fair Housing Act, criminal history-based restrictions on housing opportunities violate the Act if, without justification, their burden falls more often on renters or other housing market participants of one race or national origin over another….
A housing provider violates the Fair Housing Act when the provider’s policy or practice has an unjustified discriminatory effect, even when the provider had no intent to discriminate.

What’s the takeaway?

#1. If you’re a landlord that insists on filling your apartment complexes with tenants of spotless repute and nothing less, you may be headed for a lawsuit.

#2. If you’re a landlord without a competent licensed manager, you may be headed for a lawsuit.  Being a landlord is tough.  We can help.

 

DFW homes values are going berzerk a’la 1970’s King Kong.  Crushing.  Gone are the days of strategic short sales and negative equity.  2009 is a foggy memory.  Here in DFW, it’s like the downturn never happened.  Local demand has unleashed a fury and inventory is being sucked up like cattle in a tornado, taking auntie Em with it.  There’s few places for value buyers to hide.

Look at this 1 year chart for Dallas’ Median Price per Square Foot!

We’ve bounced off the seasonal downturn, aiming straight for new levels of home equity wealth never seen in our lifetimes.  Realtors are the new black and there’s no turning back…at least…for now.

Regardless, if you’re holding rental property it’s all good news.  Rental rates are rising and we are leasing homes at 150% and more of what they fetched in 2009.    This market will turn at some point.  If you’ve got a dog of a rental, summer of 2016 is a perfect time to unload it at high dollar to some home starved, salivating buyer.  But if you’re looking to acquire, you’ll need to work a little harder to beat the going cap rates.  Don’t fear dear investor;  there are still deals to be had with off-market, auction, and wholesale opportunities.  We know because YES, we are still buying.

Best of luck