Two prospective tenants feel that because of their national origin, they were denied rental of an apartment in a 12-unit apartment building. The building was owned by a private individual who lived in one of the units and who used no discriminatory advertising and no real estate broker. Do the prospective tenants have any recourse?

While the tenants may feel they experienced discrimination, the number of units plays a crucial role in determining the applicability of federal housing laws. Since the building has only 12 units and the owner occupies one, the owner is exempt from Fair Housing Act regulations, which limits recourse for the tenants.

The absence of a real estate broker does not alter the legal obligations of the property owner in this case. The key factor is that the owner occupies one of the units, which exempts them from certain anti-discrimination laws, regardless of whether a broker was involved in the rental process.

While avoiding discriminatory advertising is a positive practice, it does not influence the legal standing of the case. The main reason the tenants lack recourse is the owner-occupied status of the building, which provides a legal exemption from the Fair Housing Act for small rental properties.