Legal To Offer Senior Discounts On Rent?
I see senior discounts offered on just about everything. However, I have never seen anyone advertise a senior discount on rent to attract this market. I can't see how it could be discrimination if you would still be willing to rent the unit to anyone, but you simply offer a discount to seniors. Also the fact that there are so many senior discounts out there has to mean something. Anyone know about this one?
Hey,
I don't believe it would be illegal, but would it really be in your best interest? Why should someone that is 65 get a break on rent (take money out of your pocket)?
Also, I have never had anyone over the age of 40, or so, want to rent.
Hi Bruce,
No tenants over 40? That's incredible. Probably 50% or more of my tenants have been over 40 and they are FAR and away my best tenants. They always pay on the 1st, they tend to stay put so you don't lose money from turnover fixups and vacancy time, they don't tear up anything, there is less wear and tear on the units because they often live alone or don't have kids,they don't cause any disturbances that cause me to get calls, and they simply complain less about any minor things that may be wrong. If I could only have tenants over 50, I would be a very happy man. The break on rent is easily covered by the above mentioned cost savings, and there is a piece of mind premium I get from not having to worry about what problems they are going to cause me or the neighbors. As you can see, I'm big on seniors.
davmll,
I used to operate a 70 unit seniors housing building for limited Parnership I did back in the 70's (ah, ancient history has always been a hobby of mine.)
It is illegal to "discriminate" in the provision of housing on the basis of age per the Fair Housing Act. Offering a discount could be considered discrimination, I suppose.
However there is an exception of the majority of the units so rented are rented to people over 55. Mostly the law is designed to protect people with kids from being unable to rent apartments.
Its been 20 years since I last brushed up on thsese things, you might want to call whatever social service agencies cater to seniors in your area and ask them.
When I ran the seniors building all my tenants came to me by referral from social workers who specialized in Seniors. It was great, they also helped those who needed it arrange housekeepers and home health nurses. I'm with you--senior housing is much easier to manage and if giving them a slight discount will help I think it money well spent.
A legitimate argurment could be made that discounting rent for seniors (in a property not age restricted) would violate Title VIII (Fair Housing Act). In effect you'd be charging different (higher) rent for those who are not of a certain age. You might be able to rebut the argument by proving that you did not intend to discriminate against younger tenants. However, this gets sticky because it could also lead to charges of discrimination based on familial status.
Kind of you to want to do this, but potentially very risky.
How about putting the senior tenant in your unit at the same price you advertise to the general public, but manage the amount of your annual rent increase to offer the break you want to give.
Another idea is to offer a rent discount if rent is paid on time. I have really liked doing this as it rewards my good tenants.
The only issue I have had is that I do have one tenant that always pays on time but is rather high maintenance in terms of complaints. I will not be renewing the lease.
Thanks for the ideas www.everyone.I'll give them all some thought. Commercialking, I'm curious about what you mentioned in regards to there being an exception to the fair housing act if most of the units are rented to folks 55 or older. What about duplexes or even single family homes? Can I simply advertise my duplexes as senior housing if I only except tenants that are 55 or older or do I need a special "blessing" from the housing authority?
Hey,
Maybe I am reading it incorrectly, but Title VIII does NOT mention age as a protected status. The HOPA ALLOWS a building to be adult only (no children) if it is considered for seniors.
Generally speaking, being young is NOT a protected class only older (age 55+) is protected.