Renters of color historically have a harder time qualifying for housing than similarly qualified white renters, but that’s not all. They also have to pay more to live in virtually the same unit and area as equally qualified white renters.
Why is this happening?
Renters of color pay more in application fees and security deposits. Rent remains high for all groups, which forges an even tougher financial struggle when met with added fees — the coup de grace for renters already struggling to make ends meet.
Nationally, from March through August 2021, two-in-five renters who moved said rising rents was their main reason for leaving. Of those respondents who moved during these six months, the share of renters who relocated due to rent hikes was:
- 63% of Latinx renters;
- 56% of Black renters;
- 41% of Asian renters; and
- 38% of white renters, according to Zillow.
As well as paying more security fees, renters of color also needed to submit more applications than white renters. When application fees are already higher for renters of color, the additional applications typically required to secure a rental add up.
On average, white and Asian renters need to submit two applications before receiving approval to rent, whereas Black and Latinx renters submit three applications. On average, landlords require:
- white renters to make a security deposit of $600 and pay a $50 application fee;
- Black renters to make a security deposit of $700 and pay a $65 application fee;
- Latinx renters to make a security deposit of $650 and pay an $80 application fee; and
- Asian renters to make a security deposit of $1,000 and pay a $100 application fee.
The Zillow study does not mention how security deposit amounts may coincide with rental prices. For example, higher security deposits are often required for higher-priced units, thus may skew the average deposit amounts displayed in this list.
For a more accurate view of the issue, consider the renter groups who needed to relocate due to rent hikes. In these cases of rapid rent increases and higher fees, landlords are by and large not showing bias on an individual scale. Rather, the higher rental burdens for households of color are the byproducts of deeply entrenched systematic discrimination.
For example, consider the ongoing effects of redlining. Redlining is the practice of denying mortgages and under-appraising properties in communities of color. Redlining was outlawed in 1977, but the residuals remain, leading to a decline in the quality and quantity of housing in communities seen as “risky.”
Related article:
Black mortgage applicants denied almost twice as often as white applicants
Say no to implicit bias and discrimination in real estate
Real estate professionals have a duty to combat racial factors and other types of discrimination playing any sort of role in the housing process.
In recognition of this duty, real estate agents and brokers with licenses expiring on or after January 1, 2023 will need to complete implicit bias training to renew their licenses.
firsttuesday’s Implicit Bias course will require licensees to learn:
- the impact of implicit, explicit and systemic biases on consumers;
- the historical and social impacts of those biases; and
- actionable steps licensees may take to recognize and address their own biases.
Landlords, beware: charge tenants the same fees based on observable factors. For example, charging an additional pet fee is reasonable — but only when the landlord charges the same pet fee for all tenants with pets.
When you’re unsure what to be mindful of, turn to California’s Unruh Civil Rights Act, which protects against discrimination due to:
- age;
- ancestry;
- color;
- disability;
- genetic information;
- national origin;
- marital status;
- medical condition;
- race;
- religion;
- sex (including gender identity and gender expression);
- pregnancy; and
- sexual orientation. [Calif. Civil Code §51(e)]
Landlords violating anti-discrimination protocols will face consequences, especially when a tenant takes legal action, which may result in money losses and civil penalties. Going to trial is not a fun process for anyone, except for perhaps the lawyers making their livelihood off of it. Real estate professionals have their own livelihoods to protect. To start, check out Advertising Guidelines for Sales and Rentals for more information on how to avoid discrimination in practice.
Stay tuned for more information as the Implicit Bias course rolls out, expected to be published in July 2022.
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***correction—- Rent is currently $814.00 before miscellaneous. ***
RUBS – Water and Sewer – Water/sewer 3/5/22-4/4/22
$27.69
General Use Mitigated Risk – Posted from 05/01/2022 to 05/31/2022
$12.00
Rent
$940.28
General Use RUBS Fee – Posted from 05/01/2022 to 05/31/2022
$3.00
General Use RUBS – Trash – Posted from 05/01/2022 to 05/31/2022
$15.00
General Use Month To Month Charges – Posted from 05/01/2022 to 05/31/2022 – Auto generated month to month fee.
$200.00
General Use RUBS – Pest Control – Posted from 05/01/2022 to 05/31/2022
$8.00
Total
$1,205.97
Good Day Sir / Miss. Please look into this Apartment Complex The Branch at Medical. . They are charging exuberant fees. I moved into this complex in 2017 in a 2 bedroom bath which was close to $1000. I transferred to a small 1 bedroom 1 bath $739.00 in 2020 amid the Corona Virus to save. I live alone. This leasing company refused to fix my front patio landing and lights throughout the building for almost 2 years leaving tenants exposed to danger of falling in the dark along the stairs and been attack by individuals who do not live in the complex and walk around jumping into the dumpsters and opening tenants garbage, also every month there has been different management when you have to pay the rent. I have lost many days of waiting for maintenance to take care of items that need to be fixed. The people in the leasing office tell you that they will take care of the issue, months later nothing is done and they act as it is that first time that it is been reported when you ask for the service request after asking for over ten or more times. At the moment my AC is not working. I reported it , they said they will send someone , when I was going to the leasing office to report it because they do not answer their phone , it states that it is not activated when you call. I saw one of the managers showing the property, that was how I managed to report it. There is no emergency number to contact in case of emergencies. They tell you that a maintenance will be there. I have taken time off work losing funds, while this complex continues to take the rent every month with different management every month. Apartment have been broken into and items stolen. There is no security at the complex and maintenance have keys entering apartments when there has no permission or services requested. The complex is making renovations etc for new tenants and, but refuse to take care of the needs of current tenants. I was just able to access the portal and above is the current bill that was sent for my rent. this is a $739.00 apartment and in 2 years this is the above bill. I am pleading with you to look into this issue please, for us the tenants. This apartment complex continues to raise their fees. There have been numerous shootings in this complex , the value of this surrounding has gone down. the Corona Virus has left a lot of individuals and families struggling to pay their bills yet this Institute continues to raise the rent and not acknowledge when there is an issue with tenants home. A lot of people cannot afford to move , this leasing company is continuing to take advantage of the situation. My regular rent at this time with my renewal for 05/01/2022 before other charges is $8.14,yet this is what this rental property is charging above. Thank you for looking into this issue for us the tenants at Branch At Medical. I appreciate it. I have had to put up with a lot of issues here for the past 5 years , and not complained. This is not fair to me and other tenants here. This needs to be looked into and addressed. Thank you very much. You and yours have a blessed day.
Hello Patty,
We are happy to clarify our writings, but unfortunately we are not able to offer legal advice.
Best regards,
Editorial Staff