Did You Bludgeon Your Previous Landlord To Death? No Problem!
Minneapolis, Minnesota, seems to be trying really hard to kill the rental housing market there.
That's surely not how the people who passed their new rental tenant screening law see it, but it seems to be direction it'll play out.
Christian Bristschgi writes at Reason that the new law restricts "the ability of landlords to screen potential tenants by researching their credit scores, criminal backgrounds, and eviction histories":
On Friday, the City Council unanimously approved an update to the city's Renter Protection Ordinance, requiring landlords to apply "inclusive screening criteria" when selecting applicants or else follow an onerous "individualized assessment" process.
Landlords are ... forbidden from turning down potential tenants for any misdemeanor convictions older than three years and for most felony convictions older than seven years. The law does allow landlords to reject applicants that have been convicted of murder, manslaughter, kidnapping, or first-degree criminal sexual conduct, but only if those convictions were within the last 10 years.
Murdered your previous landlord 11 years ago? You're good!
The inclusive screening process also prevents landlords from rejecting tenants for evictions older than three years.Rental property owners who use the individualized assessment process are allowed to reject applicants because of their criminal record, credit score, or eviction history. Before they do so, however, the landlords must first give tenants the opportunity to provide supplemental information about the nature and severity of potentially disqualifying past behavior. A landlord who still wants to reject someone after considering this supplemental information must provide a written reason for denying their application, a copy of which must be filed with the city.
The new Minneapolis law also forbids landlords from charging security deposits that exceed a single month's rent.
So they have to accept shaky tenants, but they can't say, "Hey, I'll take you, but I want a couple of months security deposit," or whatever.
The Minneapolis law also raises some constitutional red flags, says Ethan Blevins, an attorney with the Pacific Legal Foundation, a public interest law firm."You have a fundamental right with respect to the right to exclude people from your property and you don't abandon that when you decide to become a landlord," says Blevins. "Arguably these things burden that right because you are unable to use relevant factors in deciding whether or not you want someone to occupy your property."
Blevins and the Pacific Legal Foundation are currently suing Seattle, Washington, over similar rental regulations that bar landlords from considering tenants' criminal history.
Proponents of such regulations have argued that a criminal record is a poor predictor of tenant behavior, and that credit scores don't accurately reflect people's history of paying rent.
Well, fine, but it should be a landlord's choice to take on that risk.
Personally, six years ago, I hired somebody with a conviction (for a violent crime while high) to edit me part-time. It was a risk, however, as she was an addict for many years.
But I believe in second chances, and I figured, worst case scenario, she mucks with one of my checks or goes on a bender and doesn't show.
Mucks with a check? The bank makes good. Doesn't show? I torture Gregg to help me brainstorm the funny beginning and end to my column for a few weeks.
Seemed small, fixable prices to pay, so I gave her the job.
She's amazing, with great integrity she developed, and I love her. Taking the risk of hiring her was one of the best decisions I've ever made.
But I made that decision, that choice, after weighing the tradeoffs.
What's next in Minnesota, they make the bank hire embezzlers to man the teller windows?








I have a solution. Month to month rentals. You hand me money on the first, and you get to stay. If you don't, you need to move. You don't move, you get evicted on the 15th.
You want to move? give me your payment this month and tell me you're leaving at the end of the month. I want you to move out, I tell you need to go by the end of the month when you pay me.
I R A Darth Aggie at October 9, 2019 7:01 AM
At least in Texas it doesn't work that way IRA. You can file eviction papers. The police will look at them a month or two later. After about six months they might show up and actually evict someone. Trying to evict them yourself is illegal and could result in the courts taking your rental away and giving it to the squatters.
Agreed this will kill off the rental markets there. Rent houses will go up for sale as regular houses. Want to live there, buy it. No more renting. Apartments will become condos. On the bright side for those still willing to rent prices will go up getting them more pay. Maybe Minneapolis will impose rent control like California.
Ben at October 9, 2019 8:05 AM
So, you can't have someone without a lease arrested for trespass?
I R A Darth Aggie at October 9, 2019 10:07 AM
Depends on the details.
If they are just squatters and have never paid rent if they have lived at the property for 6 months or more they have a claim to permanent residence. If they have also paid taxes on the property that gives them a stronger claim but it isn't necessary.
If they are someone who is in violation of a contract (not paying after signing one) or their contract has timed out and are not paying you end up with the situation I detailed above. Essentially half a year to kick someone out. But you need to start before that 6 month squatters issue comes up.
At one point if the renter was a women with a child and they could get a note from a doctor who said the child had been sick in the last month you could not evict them unless you were a bank. You had to wait till the child was legally an adult. I don't know if that has changed. Earlier it was anyone and then the banks lobbied to get some sanity just for themselves. Hence the odd carve out.
To the best of my knowledge Texas isn't particularly worse than most other states on this issue. So I expect something similar from most places. Hence the business concern with background checks and rental history. Thankfully most people leave willingly.
Ben at October 9, 2019 10:26 AM
That last line is quite plausible. Under ADA the courts have already ruled that companies hiring truck drivers can't exclude you for DUI.
All these piles of discrimination law have accomplished is to create ways for bad guys with lawyers to game the system with bogus complaints. So it's time to re-legalize all forms of discrimination by private persons and companies.
jdgalt at October 9, 2019 10:40 AM
One little nugget Reason should have been happy about:
"If a landlord uses a minimum income test requiring an income equal to three (3) times the rent or higher, the landlord must allow an exception to that test where the applicant can demonstrate a history of successful rent payment with an income less than three (3) times the rent."
So landlords can no longer rely on an arbitrary metric devised by a couple of legislators in the 60's and last updated in 1981. If you want to pay Venice rent and live on the low carb version of ramen then that's your business so long as the bills get paid.
smrufy at October 9, 2019 1:14 PM
I have heard horror stories about renters. One was a couple renting out their house until they could sell it. The people that moved in just stopped paying rent and my friends were across the country and could not do anything about it. They trashed the place also.
Do-gooders like this do not grasp that a landlord has a lot invested in a property and can easily go broke. They also want to arrest the landlord if the renter is selling meth or hosting johns there. As Amy notes, this law is a good way to reduce the supply of rental homes.
Ben's point above is correct. The 6 month nonsense it to "protect" renters --landlords are evil and do not get protection.
cc at October 9, 2019 5:02 PM
@smrufy :"If you want to pay Venice rent and live on the low carb version of ramen then that's your business so long as the bills get paid."
No, it's the landlord's business as well, just like it's the bank's business when you get a mortgage. The very core of business judgment is weighing risk against reward, and the proportion of your income consumed by the obligation under consideration is a proven reliable measure of the landlord's risk.
bw1 at October 9, 2019 5:45 PM
Can't resist:
Images by Tyrone Green
Dark and lonely on a summer night
Kill my landlord, kill my landlord
Watchdog barkin' - do he bite?
Kill my landlord, kill my landlord
Slip on the ice, break my neck,
sue my landlord for every cent.
Does it matter? What the heck?
Kill my landlord, kill my landlord
C-I-L-L my land-lord.
bw1 at October 9, 2019 5:48 PM
This law is another example of bureaucrats and ideologues trying to control other people's wealth by controlling their investment decisions for them. That bureaucratic control is always, ostensibly, presented as being for the benefit of "the people." Hmmm I wonder how this law benefits the people who live in the other apartments and don't want to live next door to a murderer or a meth dealer.
Conan the Grammarian at October 10, 2019 4:00 AM
"This law is another example of bureaucrats and ideologues trying to control other people's wealth by controlling their investment decisions for them."
Like a lot of regulatory schemes, it's also a means of restricting competition. Part of the cost of adopting and defending all of these procedures and processes is fixed -- it costs the guy who owns one rental house the same as what it costs a 400-unit apartment complex owned by a real estate investment company. It's obvious as to which entity can more easily absorb the cost, and who subsequently benefits.
Cousin Dave at October 10, 2019 6:13 AM
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