Is it discriminatory to rent out a house where kids can’t go to the local public schools?

[cilonev490]

What is the name of your state? ca

I have a rental that is exempt from school district taxes. So nobody can use the address to register kids in the school district. I inform any new tenants of this beforehand. Normally not a problem, but this interested couple questioned me about it. They really want the place, but they have kids. Now they’re claiming it’s discriminatory to rent the place like this since it basically means no one with kids can live there.

 

[LdiJ]

What is the name of your state? ca

I have a rental that is exempt from school district taxes. So nobody can use the address to register kids in the school district. I inform any new tenants of this beforehand. Normally not a problem, but this interested couple questioned me about it. They really want the place, but they have kids. Now they’re claiming it’s discriminatory to rent the place like this since it basically means no one with kids can live there.

Is it your choice for the rental to be exempt from school district taxes? If not, why is it exempt? Unless somehow it is due to you that it is exempt I don't see how they could claim any kind of discrimination, let alone the kind that is illegal. Are they expecting you to not rent the place out at all if children cannot live there and attend school in the district?

 

[Zigner]

What is the name of your state? ca

I have a rental that is exempt from school district taxes. So nobody can use the address to register kids in the school district. I inform any new tenants of this beforehand. Normally not a problem, but this interested couple questioned me about it. They really want the place, but they have kids. Now they’re claiming it’s discriminatory to rent the place like this since it basically means no one with kids can live there.

I would argue that it doesn't mean that a kid can't go to school...just that they can't go to the local public school. There are still other options.

 

[cilonev490]

Is it your choice for the rental to be exempt from school district taxes? If not, why is it exempt? Unless somehow it is due to you that it is exempt I don't see how they could claim any kind of discrimination, let alone the kind that is illegal. Are they expecting you to not rent the place out at all if children cannot live there and attend school in the district?

I guess the continued exempt status is my choice technically. It was made exempt decades ago by the previous owners. I looked into it before and I can make the address useable for residents to register their kids, but then I would have to start paying those taxes. It's apparently virtually impossible to get that exemption status again later. So it didn't seem like a good idea or worth it since I never had a problem finding tenants without kids.

 

[FarmerJ]

I cant say I have ever heard of such a thing but this is what i found https://www.boe.ca.gov/proptaxes/lessor_exemption.htm SO what is the exact difference more in dollars you would have to pay in taxes if minor children of tenants were to attend public schools ? I suggest since it appears from that web page that a tenant can apply for the reduction to consult with your attorney about writing a lease that allows the childless tenant to apply for the reduction and then when they can prove that they are eligible to reduce the rent by that amount through the rest of the lease this way the burden is not on you and if a tenants situation changes like a grand child having to live with them then its on them to report the change. Im sure your attorney can also tell you if its legal for the school district to refuse a tenants children since they must also have a reporting mechanism for this. but again talk to your attorney about this mess.

 

[adjusterjack]

Now they’re claiming it’s discriminatory to rent the place like this since it basically means no one with kids can live there.

Not legal advice but, as a former landlord, I would not succumb to threats from prospective tenant. My response would be a simple no can do and be done with it.

 

[LdiJ]

I guess the continued exempt status is my choice technically. It was made exempt decades ago by the previous owners. I looked into it before and I can make the address useable for residents to register their kids, but then I would have to start paying those taxes. It's apparently virtually impossible to get that exemption status again later. So it didn't seem like a good idea or worth it since I never had a problem finding tenants without kids.

Well, since it is your choice, they might have grounds to claim that you are being discriminatory. I also hope that this isn't one of those cases where you don't really have the right to the previous owner's exempt status but are cheating a bit, because that could come back to bite you in the butt if they make a stink.

 

[zddoodah]

The answer to the question asked is no.

 

[Taxing Matters]

The answer to the question asked is no.

I agree. You are not discriminating against them on any prohibited basis, i.e. because they have kids. You apparently have no problem with kids being there. The problem is that the kids can't go to the local public school (at least for free) because of its property tax classification. You don't have control over the rules for kids being admitted to public school and you don't have a requirement to change the long standing tax exemption just to rent the place. So you can tell the parents you are happy to rent to them if they meet your usual requirements but that It's up to them what to do about their kids' education. Landlords are not responsible for that.

They could opt for private school, home tutoring, etc as alternatives to the public schools. In some states public schools in this kind of situation will allow the kid to attend if the parents pay tuition to cover the cost. If they want to live in your place badly enough they can pursue those alternatives.

I think advising potential renters with kids upfront about the public school limitation is a wise thing to do so they can make a fully informed decision and can't come to you later claiming that it was a surprise to them that the kids can't go to the local school.