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From my perspective, if it were a matter of your personal participation in a private activity that you consider immoral, that would be one thing. However, Christians also have a duty to obey the laws of the society in which they live (1 Peter 2:13-17), unless such obedience would violate their conscience or their higher duty to God, in which case they have to be prepared to accept the temporal consequences of disobedience. Although I'm not a lawyer, it would seem to me that, in the case you cite, even though you might firmly believe that there were valid religious grounds for refusing a prospective tenant, and that you would be permitted from a religious standpoint to do so, there would also be fair housing statutes in place that would limit your discretion as a landlord in that regard, and that would carry legal penalties as well as the possibility of civil lawsuits against you for their violation. Also, the actions that you might take in refusing such prospective tenants would be affecting not only you, but also those tenants, who are looking for a place to live, and who (although they may be living in a manner of which you as a Christian might disapprove) are not violating any laws of the state. (In addition, if I were in your position from a spiritual standpoint, I would also examine my own life for any possible inconsistencies in the standards that I apply to myself, and those that I apply to others, before judging those others, and acting on those judgments (Matthew 7:1-5).) I would suggest consulting with an attorney to get a full reading of whether there might be potential legal penalties for refusing a prospective tenant on the grounds that you cite, and, if so, what those penalties might be, so that you can make a fully-informed judgment on a course of action from a civil as well as a religious standpoint.
Maybe view it as an opportunity to be the light. We were all dead in our sin until we repented and trusted in Jesus. Everyone is our neighbor. Let's consider what 1 Corinthians Chapter 5 says. 12 For what have I to do with judging of outsiders? Is it not those inside the church whom you are to judge? 13 God judges those outside. "Purge the evil person from among you." I don't think it's a sin for you to rent a house to a sinner as you would not be able to rent to anyone. Be the light, show them the love of Jesus in how you treat them. Never lie or water down the truth when you get the chance to share the gospel but neither should we ostracize someone who is outside the body of Christ or who sins differently than we do. If you ever get in a conversation on the subject with them, be truthful and honest in a loving way but do not stray from the truth but also, do not treat them as though they are less than you.
Strange how we can find ourselves turning to the state laws and rules first rather than to God and His laws! The text that came to my mind about this, and it led to another question, is this "... what fellowship hath righteousness with unrighteousness? And what communion hath light with darkness? 15 And what concord hath Christ with Belial? Or what part hath he that believeth with an infidel?" (II Corint 6). What fellowship? Second thought : imagine a) providing shelter for fornicators and or adulterers in your own house and thus b) supporting that ungodly immoral practice right under your own roof?YHo! Make a part of one's estate a "whore-house" the whore estate is tainted! Finally c) by turning a blind eye on this evil life -style what message would one be giving but that it is "OK" to live like that? It is NOT OK. "Avoid every appearance of evil"(I Thess 5:22). Amen. The issue is FELLOWSHIP of righteousness with unrighteousness!
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