Author Topic: moral dilemna rental bonus  (Read 1131 times)

srob

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moral dilemna rental bonus
« on: July 29, 2015, 02:19:19 PM »
Hey mustachian friends! I know this is a good problem to have as a landlord. Not trying to brag or anything, just looking for honest input.

I have a small rental building and recently advertised a soon-to-vacant apartment for rent and received a ton of inquiries and already have 15 applications, 8-10 of which are totally qualified, no hesitation-type applicants, in less than 24 hours. I am quite surprised by the level of interest. I know you are thinking the rent must be too low, but I think the demand is just very high? I raised the rent 12% already from what the current tenants are paying, and it is just below or at the norm for similar size apts in the area.

 Anyway, I am having a tough time deciding who to choose, and one qualified applicant just emailed and offered me $100 bonus to seal the deal. I am tempted to just sign him since it makes my decision easier. Should I feel morally obligated to let the other applicants know of the offer? I don't want to create a bidding war or something, but I do feel like I am kind of selling out all the other applicants for a measly 100 bucks. idk. what would you do?


MillenialMustache

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Re: moral dilemna rental bonus
« Reply #1 on: July 29, 2015, 03:01:15 PM »
Ummm...wow. What a problem to have!

Off the top of my head, I probably wouldn't take that person because I don't want a bribe to somehow reflect badly on me later. Not sure exactly how, but it seems like it could.

Jack

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Re: moral dilemna rental bonus
« Reply #2 on: July 29, 2015, 03:49:46 PM »
I know you are thinking the rent must be too low, but I think the demand is just very high?

Those two statements are equivalent.

Anyway, I am having a tough time deciding who to choose, and one qualified applicant just emailed and offered me $100 bonus to seal the deal. I am tempted to just sign him since it makes my decision easier. Should I feel morally obligated to let the other applicants know of the offer? I don't want to create a bidding war or something, but I do feel like I am kind of selling out all the other applicants for a measly 100 bucks. idk. what would you do?

Do you own enough units to be subject to the Fair Housing Act or other more local laws? If so, do they say anything about it?

srob

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Re: moral dilemna rental bonus
« Reply #3 on: July 29, 2015, 04:02:47 PM »
ha ha good point and question! I know that my state is generally landlord friendly, but I'll see if I can find any rules against this sort of thing...

Fishingmn

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Re: moral dilemna rental bonus
« Reply #4 on: July 30, 2015, 06:23:38 AM »
Please follow your state's rental laws.

In Minnesota you must process applications in the order received and accept the first person that meets your criteria (hopefully these are formally documented). To do otherwise will open you up to discrimination claims.

Another Reader

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Re: moral dilemna rental bonus
« Reply #5 on: July 30, 2015, 06:57:05 AM »
Fishingmn:

Is that the law in Minnesota, or is that a "defensible position" adopted by licensed property managers?  It's not the law in Arizona, but most property managers (must be licensed and operate under the supervision of a broker) follow this because it's a viable defense against discrimination complaints.

Fishingmn

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Re: moral dilemna rental bonus
« Reply #6 on: July 30, 2015, 08:11:27 AM »
According to the real estate class I took it's the law in MN.

I also think it's a best practice - just be sure to set your criteria in a way to ensure that anyone that meets them is acceptable.