August 2022 Coach's Quiz

We’ve explained the new HUD Guidance and outlined the strategies for putting them into action. Now it’s your turn to test how well you’ve learned the material and whether you can apply it to real-life situations by taking the Coach’s Quiz below. Each of the following questions has one and only one correct answer. Good luck!

QUESTION #1

Which of the following marketing activities would it be appropriate to use?

a.            Relying on word of mouth generated by your own tenants

b.            Posting a “For Rent” sign on your property

c.             Distributing flyers and applications to a broad group of local organizations

d.            All of the above  

QUESTION #2

While doing a rental history check, you discover that a rental applicant was evicted by her previous landlord. What should you do?

a.            Figure out exactly what happened and why she was evicted

b.            Automatically reject her for failing to meet your rental history criteria

c.             Overlook the issue as long as the applicant meets your other criteria and is part of a racial, ethnic, or nationality group currently underrepresented at your community

COACH’S ANSWERS & EXPLANATIONS

QUESTION #1

Correct answer: d

Reason: Strategy #1 applies here:

Strategy #1: Market as Broadly as Possible

The key to compliance and ensuring a representative tenant mix is to ensure your marketing and outreach efforts are designed to reach the broadest possible range of potential applicants in your market area. Conversely, you need to avoid relying solely on practices that target or are likely to reach only limited segments, such as marketing exclusively through your local church. While choice c. is the best example of such an activity, a. and b. are also acceptable marketing activities, provided that they’re not the only things you do. So, d., all of the above, is the correct answer.

Wrong answers explained:

a. is wrong because word-of-mouth marketing is likely to reach only the networks of tenants you rely on to promote your community. This can perpetuate segregation and exclusion, especially if your current tenant mix isn’t representative. But liability depends on what else you do. Word of mouth is fine as long as it’s accompanied by other marketing efforts targeting a broader range of applicants; but it becomes problematic when it’s the only kind of marketing you engage in.

b. is wrong for the same reason a. is wrong. Posting a “for rent” sign reaches only the people who are physically present on or drive by the property. But again, the practice itself is perfectly acceptable as long as it’s not the only thing you do to market your property.   

c. is a tempting choice because working with a wide range of local organizations is an effective way to broaden your marketing. The reason c. isn’t the right answer is that choices a. and b. may also be acceptable marketing practices, as long as they’re just one of the ways you market.

QUESTION #2

Correct answer: a

Reason: Strategy #5 applies here:  

Strategy #5: Identify & Eliminate Potentially Discriminatory Screening Criteria

You’re not legally obligated to rent to applicants who don’t meet your legitimate screening criteria, including with regard to rental history. While being evicted by a previous landlord is clearly a red flag, it shouldn’t automatically trigger a rejection, according to the Guidance. Don’t make a decision until you get all the facts. After all, maybe there’s some explanation or extenuating circumstance that would relieve the evicted applicant of fault, such as a court ruling finding the landlord committed discrimination in evicting her. So, a. is the right answer.

Wrong answers explained:

b. is wrong because of the use of the word “automatically.” While previous evictions could constitute grounds for rejection, you need to avoid kneejerk reactions and consider the specific facts and circumstances of each case.    

c. is wrong because failure to meet rental history and other nondiscriminatory screening criteria would be a legitimate ground for rejecting an applicant regardless of her race, color, national origin, etc. In other words, fair housing laws require only equal rather than favorable treatment. The key to this scenario is making an informed determination about whether the applicant with the eviction record really does fail to meet your rental history criteria.