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Owner and Manager Share the Blame for Racial Bias

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From Project Sentinel

QUESTION: I own a small apartment building and recently hired a property manager. Everything seemed to be going fine until I found out that I may be involved in a fair housing lawsuit.

The property manager apparently was renting exclusively to white applicants, finding some reason to reject applicants who were African American or Latino.

A friend of an existing tenant is threatening suit. Both the tenant and his friend are African Americans, and the tenant, who has lived in my building for more than five years, recommended the building to his friend.

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The friend was rejected for no apparent reason. He evidently had impeccable records, good references, good credit, etc.

My question: Am I responsible, or is the property manager liable?

ANSWER: Bad news: Both of you are potentially liable. As the owner, you are responsible for the actions of your property manager, whether he is your own employee or an employee of a property management company that you have retained.

This is a painful lesson for you, and it points out the importance of educating, training and supervising your employees on an ongoing basis with emphasis on fair housing.

You may be able to limit the damage caused by your manager if you try to work directly and in good faith with the complaining party. You may also consider working with your local fair housing or mediation program to seek a solution.

Tenant Risks Public Record of Eviction

Q: A friend of mine is having a problem paying his rent, but he doesn’t seem to be worried about being evicted. He says the only thing a court eviction will do is give him extra time to find a new place to live. I don’t know a lot about the subject, but I disagree with him. What do you think?

A: It is true that legal action for eviction may allow your friend to stay in the apartment until a judgment is entered, but there can be serious consequences.

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This is not to say that a tenant should not exercise his or her right to use the court system appropriately. Not every eviction case ends in favor of a property owner.

There are many reasons a tenancy dispute can end up in court. However, in the case of your friend, if the issue is strictly nonpayment of rent without extenuating circumstances, it is quite likely that the judge’s decision will be in the owner’s favor.

This means that your friend will have an eviction on his credit and tenancy records, and he may have a difficult time renting elsewhere.

A money judgment will be listed on a credit record for at least seven years if the judgment is paid, longer if not paid. In addition, the judge can also award legal fees, which will also appear on a credit report.

It is not a good idea for your friend to risk legal action for the sole purpose of getting extra time to move. Your friend should try to work with the owner to find a more suitable and less harmful solution to his housing problem.

Your local housing mediation program may be able to help your friend work out a payment plan or make other mutually acceptable arrangements with his landlord.

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This column is prepared by Project Sentinel, a rental housing mediation service in Sunnyvale. Questions may be sent to 1055 Sunnyvale-Saratoga Road, Suite 3, Sunnyvale, CA 94087 but cannot be answered individually.

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For housing discrimination questions, complaints or help, call the state Department of Fair Housing and Employment at (800) 233-3212 or the Fair Housing Council, Fair Housing Institute or Fair Housing Foundation office in your area:

Bellflower: (888) 777-4087.

Carson: (888) 777-4087.

El Monte: (626) 579-6868.

Hawthorne: (888) 777-4087.

Lancaster: (888) 777-4087.

Long Beach: (562) 901-0808.

Pasadena: (626) 791-0211.

Redondo Beach: (888) 777-4087.

San Fernando Valley: (818) 373-1185.

South-Central Los Angeles: (213) 295-3302.

Westside Los Angeles: (310) 474-1667.

Orange County: (714) 569-0828.

San Bernardino County: (909) 884-8056.

San Diego County: (619) 699-5888.

Ventura County: (805) 385-7288.

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