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  1. #1
    Join Date
    Apr 2013
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    2

    Default Denied an Apartment Due to Being Unemployed, Despite Ability to Pay from Savings

    My question involves landlord-tenant law in the State of: California

    I just got a lump sum payment that I want to use as verification to rent an apartment. I have credit history/score. I have rental history. But I am jobless. I have information showing the lump sum but it may not show in my bank account for a couple of days. E.g. isn't that a valid source of income and also shows that I can pay for the rent.

    I will seek employment but need an apartment for relocation reasons.

    If I can show all of those aren't I legally OK to rent that apartment. If the apartment is available and no other applications, don't I have a fair shot.

    According to California's housing codes, fair housing act should protect against source of income. Isn't a lump sum payout a source of income? I haven't been denied an apartment but I was wondering if I have any resource in the event I am denied.

  2. #2
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Finding an Apartment Unemployed with Verifiable Information

    Not in and of itself. Is it invested some way so that you earn interest on it?

    The thing with a lump sum is that once you use it, it's gone. Having a source of income means that it continues to be available.

  3. #3
    Join Date
    Dec 2012
    Posts
    1,026

    Default Re: Finding an Apartment Unemployed with Verifiable Information

    The jobless are not a protected class under Fair Housing laws if you attempt that to demand an apartment by going that route.

    Will a landlord rent to someone with a lump sum payment available? Perhaps. On the other hand, there are many landlords who would not agree to rent to someone who wishes to pay, say six to twelve months in advance as they fear they are dealing with either a person involved in something illegal (drug dealing) or by doing so it makes it more difficult to initiate an eviction for issues other than failure to pay rent if needed.

    In addition, the idea that one has enough money to cover rent for a period of months while job hunting is no guarantee they won't use that money for other things once the lease has been signed.

    Gail

  4. #4
    Join Date
    Apr 2013
    Posts
    2

    Default Re: Finding an Apartment Unemployed with Verifiable Information

    True, but they could make that argument with paystubs, unemployment insurance. If those are protected, I would hope a lump sum for that covers their 3-4 times rent requirement for the entire term of the lease.

    It is possible that a person could have a job one day and lose it the next month.

    "The Fair Employment and Housing Act (FEHA), Government Code section 12900 et seq., specifically prohibits housing discrimination on the basis of race, color, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status, disability, or source of income"

    What if source of income is not just through an employer. E.g. I see places where unemployment insurance protects you from being denied.

    http://oag.ca.gov/publications/CRhandbook/ch3

    It almost seems like it is easier for me to buy a house cash than it is to rent for a couple of months. Just based on what I read online.

    - - - Updated - - -

    I looked online some more:

    I have 'source of income' which covers their criteria. Otherwise if they exclude me for that, that is discrimination on source of income:


    "3) Interest, dividends, and other net income of any kind from real or personal property. Expenditures for amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation is permitted only as authorized in paragraph (b)(2) of this section. Any withdrawal of cash or assets from an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family has net family assets in excess of $5,000, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD";

  5. #5
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: Finding an Apartment Unemployed with Verifiable Information

    What part of this do you not understand? If you have $1000 in a savings account paying 3% per year, that means you have verifiable income of about $2.65 per month. I do not think a $2.65 per month income, is high enough income to rent an apartment.

  6. #6
    Join Date
    Dec 2012
    Posts
    1,026

    Default Re: Finding an Apartment Unemployed with Verifiable Information

    "It almost seems like it is easier for me to buy a house cash than it is to rent for a couple of months."

    Perhaps; housing prices are beginning to rise but remain lower than they were several years ago.

    Look; if you go into looking for a rental unit already armed with an argument that someone is automatically going to discriminate against you because you do not have a job and you're already to sue because of this I can pretty much guarantee that no rental agency is going to touch you with a ten foot pole.

    Gail

  7. #7
    Join Date
    Sep 2005
    Location
    Behind a Desk
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    98,846

    Default Re: Finding an Apartment Unemployed with Verifiable Information

    Quote Quoting galtor4
    View Post
    I have 'source of income' which covers their criteria. Otherwise if they exclude me for that, that is discrimination on source of income:
    You're using a definition applicable to public housing under 24 CFR § 5.609, and is utilized for the purpose of determining eligibility for certain housing subsidies.

  8. #8
    Join Date
    Sep 2012
    Posts
    1,991

    Default Re: Finding an Apartment Unemployed with Verifiable Information

    landlords are allowed to discriminate against people with too little or no income. They cannot decide not to accept tenants solely because their income is public assistance or social security etc.

    if you really wanted to you could purchase a non-retirement annuity and turn that lump sum into an income source.

    however it would make more sense to me to find a landlord who will accept 6 or 12 months rent up front (landlords like money and half a year or a years rent is a lot of money) just make sure it's a nice place that you will want to live at for the full term if you prepay you will never see that money again if you get in and 2 months later want out.

  9. #9
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Finding an Apartment Unemployed with Verifiable Information

    applying for a lease is a lot like applying for a loan. No job often means no loan/apartment.


    Here's what you can do. Pay the lease in full upon signing it. I'll bet you will get an apartment if you do that.

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