Real Estate Investing in the Real World
Real Estate Blog
WEDNESDAY, SEPTEMBER 26, 2007

Expect to see more of this issue...

As the presidential election looms, the issue of immigration - particularly illegal immigration - will move into the spotlight.   This has implications for all Americans, but it may have a particular relevance for landlords

An article in today's New York Times discusses the issue of local statues which impose penalties on landlords who rent to illegal immigrants.  In particular the article chronicles the story of Riverside, New Jersey, which is re-thinking legislation which it passed a year ago which criminalized employing or renting to an illegal immigrant.  The law has had the unintended consequence of driving away residents in large numbers, which has had an unexpectedly large impact on local businesses.  It appears that citizens who once lobbied for the law are now re-thinking their position. 

From the landlord's point of view, this is a sticky issue.  I live in Texas, a border state.  Regardless of your political affiliation it's obvious that illegal immigrants are firmly woven into the economic and social fabric of our society here.  I'm trying to imagine operating under legislation which requires me to ascertain an applicant's legal status.  Is that SSN real or bogus?  How about the ID card that the applicant has provided?  Or the driver's license?

There is an easy solution that many landlords will turn to: just don't rent to anyone who seems "suspicious".  This, obviously, is a law that invites investors to turn to discriminatory practices. 

I'm not a policeman or a Immigration Service agent.  That's not my job.  I'm a real estate investor, and part of being an investor is to offer safe, affordable housing - places where families want to create homes - and to do so profitably.  I'd strongly disapprove of a law that tries to turn me into a government enforcement agent

These are bad laws, and landlords should be vocal in their disapproval when they pop up locally. 

I'm interested in your opinion on this issue...

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Comments(7)
posted by: Chris Smith
Comments
September 30, 2007
11:50 AM
Chris - what a great topic! The most captivating sentence to me was

There is an easy solution that many landlords will turn to: just don't rent to anyone who seems "suspicious".

If a black man walks up to me with an African accent how do I know he's here legally? If a white woman with a Scottish accent (real life tenant of mine) is renting from me should I turn her in to INS to see if she is real? Where does this stop? Heck, couldn't they all have fake id's and fake Kansas accents?

What a horrible law. Enforcement should NOT be that of the landlord. And where does it stop from there?
September 30, 2007
03:20 PM
Thanks Chris. From time to time I write editorials on real estate and investing for the Business Journal network and I'll be writing on this soon. If you or anyone else have any real life stories I'd be interested in hearing them.
October 03, 2007
05:34 PM
I wholeheartedly agree Chris. In principle it sounds like one of the many ways to address the issue of illegal immigration. In practice, however, it is a nightmare! And seeing as how our federal and most of our state governments choose to do absolutely nothing about an issue that has enforceable laws on the books, to try and pawn any level of enforcement off on individual citizens is just friggin' ridiculous! I have more thoughts on the subject but I don't want to leave that type of language on your blog.
October 07, 2007
12:34 PM
I work in the real estate profession, and I have been trying to gear more of my material to that market. I had family immigrate to this country form Germany, and they never used English fluently. My wife is form Mexico, and I see that many family members are able to live their lives speaking Spanish in different parts of this country, for similar reasons that my relatives could get away with German.
I know from time to time that I have probably dealt with some one who is illegal. When I worked for a firm, I would see a host of documents that were legitimate, but then there would be one card or form that had something wrong. Did it mean they were illegal, or was there another reason?
I guess the real issue is should the government handle immigration by other means? Immigrants come for work, and they keep coming because we do have the work available here. Policies such as the one you describe are great for the press, but do little in dealing with the underlying concern. Federal and the Texas state government seem to be treading lightly, instead of facing their responsibilities, leaving us to do their job. Thank you for the post.
October 07, 2007
07:20 PM
Shelia, Frank: Thanks for the comments and your insights. This is a hugely complex issue, obviously; one that our society has allowed to build for many years.

I feel that our society has turned a blind eye for decades to immigrants who are willing to do dirty, dangerous, low paid work. We've been happy to allow them to live here, marry, raise family, pay social security etc. There is something un-American about expecting landlords to help round up members of our community that may have been here for decades.

And yes, there are some illegals out there who are gang members and drug dealers -but I'm a private citizen and don't want a role cleaning up this mess that our government has created.
October 12, 2007
08:16 PM
This law would definitely put landlords in a compromising position. Landlords have a tough enough job collecting the rent, they shouldn't have to nark on their tenants too!
January 05, 2008
06:57 PM
Do you guys want to know the truth about Riverside, NJ. It had nothing to do with illegal immigrants and all to do with the electability of a candidate as mayor.

I live minutes away from Riverside and was shock to see the confedrate flag as part of this municipalities attempt to get an unelectable candidate back unto the municipal council by using an anti-immigration movment.

Guess who is a key landlord in the Riverside, the Chief of Police. So when this crazed mayor was quoted in the local paper saying that there was an increase in crime due to the illegal immigrants, his own police chief refuted the facts.

And the legal landlords, renting to legal residents and business owners, doing business with legal clients were the ones that challenged the township because these law abiding investors and business owners began to suffer because of the witch hunt by these hate mongers trying desperately to get elected.

The good news is that the township of Riverside voted a month ago to recind there ordinances because after spending $100,000 of towship taxes - they realize they were fighting a losing battle.

Oh, by the way, the mayor lost this bid for the mayor seat.
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