Avoiding discrimination when selecting a tenant
Young professional couple? No pets? Non-smoker? These are just
some of the questions that some landlords may think about when preparing to rent
their property out. But beware;
some criteria may land you in hot water with a breach of anti-discrimination
laws or state residency legislation.
Although you have the legal right to select the most suitable
tenant for your property, it should only be based on economic factors such as
number of people suitable to reside in the property, demonstrated ability to
maintain the rent, and proven capacity to preserve a rental property in a neat
and tidy condition. Although there is some variance state to state, unfair
discrimination can occur when you treat someone less favourably because of their
sex, age, race, nationality, marital status, number of children, sexual
preferences, disability or impairment, religion, or political beliefs.
You also need to be careful of your state’s Residential Tenancies
Act as some criteria can fall under this rather than anti-discrimination laws.
For example, you may think it’s wise to ask tenants who are under 18 to provide
an adult guarantor (should they fail to meet payments). However in NSW it’s
illegal to ask for a guarantor, whereas in WA it is perfectly acceptable.
At every step of the leasing process, you must ensure that you
abide by the relevant legislation. Some examples of possible breaches
include:
·
Advertising the property as “not
suitable for children”
·
Evaluating an application
differently based on the religion of the applicant (e.g. because of previous bad
experience)
·
Changing the terms on which the
property is offered by setting a higher bond, (e.g. because the tenants are
under 21 years of age)
·
Evicting a tenant because they
wish a friend to move in with them who requires a guide
dog
·
Refusing to extend or renew a
tenancy because the tenant is now pregnant
The consequences of discrimination include being ordered to pay
compensation, which can be thousands of dollars, and often both the property
manager and the landlord will be held accountable.
With this in mind, it’s advisable to become acquainted with the
relevant legislation in your state and trust your property to a managing agent
who is trustworthy and up-to-date with current legislation.
For more information on how Momentum Wealth can assist you
with your Property Management needs, contact Lucy on 1-800-000-159 or email
info@momentumwealth.com.au
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