Can a landlord refuse to rent to someone who is self-employed?

Question

We are a couple, both over 55, who own our own company. We have credit over 800 (each of us) , joint income over 100k, and savings that would cover rent for several years. We tried to rent in a 55 + community to see if we like it before we buy there. One unit was $2200 and the other $2400. Both landlords refused to rent to us. One said that we might lose our work source and then have to move and break a lease. We offered to put 6 months rent in escrow. He still refused.  
 
The second landlord didn't understand how being self-employed works, so she just said no.  
 
Is this legal? We sold our home in another state when we moved to Southern California and this is the first time we've rented in a long time. We need to have a strategy to find a place if this is legal.  
 
Thank you.

Gerald Barry Dorfman · Answer

Unfortunately for you, the general rule is that a landlord is not required to rent to anyone they do not want to rent to.  Very notable exceptions include discrimination against members of protected categories, but self employed is not one of those categories.  The good news is, despite these particular setbacks, you should not have much difficulty finding a place to rent with your credit and income.  A little persistence will get you there.

Gerald Barry Dorfman · Answer

Just a clarification to the above answer.  It IS illegal to discriminate against a prospective tenant based on their "source of income", which does sound like it could apply to self employment.  However, the way "source of income" is defined, it tends to cover things like social security benefits, Section 8 payments, and the like, because these are "paid" to the tenant or landlord.  Because self employment income is "earned", it would be risky and expensive to attempt to litigate your situation.  Your efforts and energy are best put toward finding smarter landlords, who will appreciate you as excellent tenant prospects.

Maurice Mandel II · Answer

Mr. Dorfman is correct that litigation could be expensive and lengthy (depending on what your goals are.)  However, sometimes you just have to stand up for what is right, and think about what the next person would face if you did nothing.  If these are institutional LLs I say, go after them, because if they are doing this to you, they are discriminating against others based on the personal biases of the LL.  The law does not stand for that.  This could also be a form of Age discrimination against you, marital status discrimination, or another of other unlawful biases.  NO LL TODAY says they won't rent to a person of color, they find some other category to disqualify the potential tenant. I would recommend that you file a complaint with the DFEH on each of these LL, and contact a local Tenant's Rights attorney to represent you.  Meanwhile, find a LL that is not stuck in the values of the 1930's. 
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Q: Can a landlord refuse to rent to someone who is self-employed?