It’s No Secret: LGBT Customers Still Experience Discrimination in Housing!

After 38 years in the multifamily business, the two most important questions I have for housing applicants are still the same: "Do you pay your rent on time?" and "Do you play well with others?" 

Sure, we need to verify their answers, verify the number of occupants, and check out some other stuff like employment and rental payment history and maybe credit rating if your company needs that information. Other than that, what else matters?

In a word: Nothing. 

 

So do we care about – or need to know about – someone’s sexual orientation or gender identity?

No.

An article in a recent HUD Study found that the response to rental inquiries from same-sex couples was significantly lower than the response to inquiries from heterosexual couples. And it was higher in jurisdictions with state-level protections against housing discrimination on the basis of sexual orientation!

An older study conducted in Michigan using fair housing testers posing as same-sex and opposite-sex couples looking for housing showed that in 32 of the 120 test visits (26%), the same-sex couples received unfavorable treatment, including being told the apartment was no longer available, the rent and/or application fee was higher, and receiving lower levels of encouragement to lease. In some cases, the same-sex couples were subjected to offensive comments. 

Although LGBT is not a federally protected class – it is protected in a number of cities and states including California – the real question is, "Why do we care?" 

Perhaps one of these is the answer:

1. Well, I just don’t approve of THOSE people.

2. People shouldn't live that way.

3. This is a family community – we have lots of kids here.

4. My religion does not approve of that kind of behavior.

If you chose one of the answers above, start over. None of these answers is a legal reason to deny housing. Not only are they illegal but they are just plain wrong! Remember the essence of fair housing: Everyone who qualifies is entitled to an equal opportunity to buy or lease the home of their choice. Once they have bought or leased a home, they are entitled to an equal opportunity to enjoy living in their home. Equal access and equal enjoyment, regardless of anything other than qualifying and fulfilling the lease. Nothing else matters.

And even though LGBT is not a federally protected class, remedies are available. On the federal level, HUD and DOJ can pursue certain complaints based on the protected class of sex, the theory of disparate impact and LGBT Equal Access Rule for HUD assisted housing, mortgages insured by HUD and FHA-insured loans. In California, the Department of Fair Employment and Housing (DFEH) specifically prohibits "any discrimination in housing based on sexual orientation". 

So what to do? Here are some "Ace Your Next Shop" tips from Joanna Ellis, Chief Executive Officer, Ellis Partners in Management Solutions:

1.Treat everyone the same over the telephone, the internet and in person!  You never know who or why you are being shopped.  Is it a real customer, a professional mystery shopper, or a fair housing tester?   

2.Use your guest card and other leasing tools to ensure you’re treating all customers the same.  Use these tools to accurately record information (details are important) and keep you on track.

3.Understand and cover the basics of your leasing presentation.  Make sure you know what to include in your presentations.  If you are still unclear, attend training and educational seminars/webinars to sharpen your skills.  

4.Use mystery shops to help you identify opportunities for improvement.  The mystery shop is an excellent training resource as well as a guideline of what should be covered in every presentation.  Study the test questions, in other words.

5.Treat all customers like shoppers – actually strike "shoppers" – treat all customers like customers!  We are in the business of leasing apartments and every customer deserves to be treated equally, respectfully and professionally.

Fair housing testers are out there and it is just a matter of time before you get shopped. But that should not cause any anxiety as long as you are treating everyone equally in a consistent manner and using the qualifying standards designed to protect the interests of the owner and residents. 

Resources:

HUD: Equal Housing for LGBT

CA Dept. of Fair Employment and Housing (DEFH) Publications

National Fair Housing Alliance (NFHA)

Doug Chasick, CPM®, CAPS, CAS, Adv. RAM, CLP, SLE, CDEI, The Apartment Doctor™, has over 37 years of experience in the investment real estate industry, is a licensed real estate broker in Florida and Georgia and a Licensed Fair Housing Expert Instructor in Virginia.  Based in Melbourne Beach, FL. Doug can be reached by writing to DChasick@Aptdoctor.com  or by visiting www.aptdoctor.com.

Joanna Ellis, CAM, CAPS, has over 30 years of experience in the real estate industry, is a licensed real estate agent in Texas, and is CEO of Ellis Partners in Management Solutions, a feedback company for the multifamily industry since 1984, offering mystery shops, resident surveys, and ratings and reviews. Based in Irving, TX. Joanna can be reached by writing to jellis@epmsonline.com or by visiting www.epmsonline.com.