FHA/HUD laws

[KyleW]

Hopefully this is the correct place, it was the closest section that I noticed but here we go:

This is just a general inquiry about FHA and HUD laws.

As a web application programmer my mind is always racing to try and think up something to create that A.) Something that I think can be useful and B.) Something to challenge me since I am self taught and do this on the side/for fun.

There is this fellow at my work who like me, likes to test waters in different markets for fun and experience and I was talking to him today because he is working on getting his Real Estate license and also wants to possibly start renting out one of his properties.

Well just recently I thought of an idea (probably already done, like I said its recent, and this is America and home to Capitalizm) for a database offered to property managers and landlords to for the most part run a background check on their potential tenants. With that in mind I know there are civil records for judgements, credit checks, and the like that can taint a tenants credit and stuff like that. But this is for landlords/managers to (to make what I say easier although it is far from a correct term and not politically correct) gossip about their previous tenant(s).

For example:

• Were they habitually late on paying rent
• Did they violate their lease terms
• Did they damage property

Now keep in mind that I am not in the Real Estate industry, nor have I required a lease for a place to live so I don't know if things go unheard because they paid their damages quietly or their deposit covered any damages. But this is to kind of shed some light on prospects and give a bit more detail on what actually happened. There would be of course more features but this is not the place for it. I am not promoting anything.

Now for the question:
My buddy mentioned to me that this is illegal due to FHA and HUD laws as a type of discrimination. Is it? I tried searching all around title 42 chapter 45 sub chapter 1 for this type of discrimination.

42 U.S. Code Subchapter I - GENERALLY

 

[adjusterjack]

My buddy mentioned to me that this is illegal due to FHA and HUD laws as a type of discrimination. Is it?

Next time somebody tells you that something is legal or illegal ask them to cite you a statute number so you can look it up. Too many people mouth off about laws when they actually know nothing about laws but are just repeating something that they heard from somebody somewhere sometime.

As for whether such services are illegal under any law, they must not be because this country abounds with just those kinds of services and there are lots of them.

Landlords and management companies can avail themselves of credit reports, background checks and even a national database of tenant information where a landlord can become a member and report a departing tenant or look up a prospective tenant.

It's all computerized, doesn't cost more than a few bucks, and the information is available instantly.

Decades ago, when I had my rentals, I was a paying member of a credit bureau. I paid an annual membership fee of $50 and $2.50 for each credit report. Back then I would do it by phone, call up, give my member ID, the prospective tenant's information and write down all the credit information that was given back to me. Then I was sent a paper report and the invoice for the fee.

There is nothing new or unique about the service you are proposing. It's already available through many, many vendors.

 

[KyleW]

Yeah this is why I like to make an attempt at doing my own research on the matter and just want to make sure I didn't miss anything.

Like I said, it kind of popped in my head and figured that if in fact it is legal then it probably does exist. It's just a matter of research and hopefully some good ideas and hopefully at a better price

Thanks for the help

 

[adjusterjack]

No reason you can't get into that business once you understand what's already out there and you can build a better mousetrap.