Source of Income Law in Kansas City Missouri – Updates

Are You Up To Speed on KCMO’s Source of Income Law?

Last August, Kansas City Missouri’s new Source of Income Law went into effect. It radically changed what you can and can’t do as you advertise your properties for rent, as you talk to potential renters, and as you screen your renters. It’s way more than the fact that you have to accept Housing Vouchers. After seeing several posts on Facebook this week that violate the law and a conversation with a few housing providers who just have no idea, we thought we should revisit this.

Keep in mind that until something changes, these are the rules we need to follow in KCMO:

There is currently a lawsuit filed against this ordinance and 3 bills proposed in Jefferson City that would invalidate this ordinance.

From Attorney Dan Kelly with Landlords Inc

The first educational meeting was held by the Kansas City Regional Housing Alliance and KCRAR.

You can and you should click here to watch the replay of this educational meeting on the KCRHA Website.

• Takes Effect August 1st, 2024
• You can’t put your criteria in Advertising or State “No Section 8” or “No Housing Vouchers”
• No PreScreening or Self Screening – all are “Welcome to Apply”
• Cannot Use a Rent to Income Ratio, Instead, Calculate Actual Numbers
• Credit Report, You Can No Longer Refuse to Rent “SOLELY” on the basis of Credit History without Looking Further
• Eviction History, You Can No Longer Refuse to Rent “SOLELY” on the basis of Eviction History without Looking Further
• Criminal History, You Can No Longer Refuse to Rent “SOLELY” on the basis of Criminal History without Looking Further
• You can however deny if they fail on 2 or more of these last 4 factors.
• Can’t Make the Tenants Pay for the Cost of the Ordinance
• Looking Further – asking questions and allowing them to give you more information in order to explain or mitigate the bad information.

CYA for Navigating the SOI Ordinance from Myeisha Wright

• BE CONSISTENT – DOCUMENT DOCUMENT DOCUMENT
• The Phrase “All Are Welcome to Apply” Needs to be your Standard Answer for almost every application question
• Have Very Specific Written Policies that you have for every applicant and apply them equally
• Have Very Specific Written Procedure for how you handle everything

No More PreScreening or Self Screening

If you have been of the habit to post your rental criteria in your advertising, YOU CAN’T DO THAT IN KCMO!
If you have shared over the phone to potential tenants what your criteria might be, YOU CAN’t DO THAT IN KCMO!

MAREI Also Turned to our Own Attorney – Julie Anderson

1. Read Julie’s Compliance and Strategies – download it here from her blog.
2. Put this sentence in all advertising: “The Landlords Does Not Discriminate Based on Source of Income” ***
3. Remove All Prescreening Criteria from any and All Advertising
4. Train yourself and staff on how to talk to people: Everyone is allowed to apply
5. Have solid written screening criteria for your screening – just don’t share it with anyone outside of your office.
6. Remember the 3 big screening items that you cannot deny an applicant as the only reason – must have two: Credit History, Eviction History, and Criminal History.
7. See Julie’s Sample Criminal Screening Criteria that you can use in your own office.
8. No more rent-to-income ratios, have a set income number per property, and you have to consider all sources of income toward that number, including Section 8.
9. As you do the process of looking at extenuating circumstances, document them in writing. Who did you talk to, how do you reach them, what did they say, how did you reach your decision? You will need this should you get sued.
10. Use a good online screening company with a digital application – here at MAREI we recommend RentPerfect and have a discount for members.
11. Go back and read Julie’s Compliance and Strategies again – download it here from her blog. (We suggest reviewing with staff regularly so you don’t forget.)

Here’s the replay of our meeting with Julie