Landlords must know the Fair Housing Act to avoid violating it and being sued. A violation can occur when screening tenants or processing rental applications.
Some landlords have unintentionally violated the Fair Housing Act, costing them a lot of money. Not only that, but it also affected their reputation as a landlord.
Especially if you're a first-time or inexperienced landlord, you need to make sure you comply with the Fair Housing Act. One mistake is costly and will adversely affect your rental business.
In this article, you'll understand what the Fair Housing Act is and how you can protect your rental business. At the same time, you'll learn how to protect the rights of your tenants.
What is the Fair Housing Act?
The Fair Housing Act was established in 1968 to make sure that landlords practice fair housing throughout the US. It was later amended in 1988.
The Act protects classes from discrimination in the sale or rental of properties. Moreover, it makes housing available to everyone regardless of who they are.
The Fair Housing Act, along with other federal and local laws, protect prospective tenants and home buyers.
The Act makes housing available to people regardless of race, religion, color, sex, disability, civil status or nationality. Aside from these, it also protects additional classes, such as:
- Age
- Citizenship
- Military status
- Genetic information
- Sexual orientation
- Gender identity
- Criminal history
- Source of income
In addition to studying the federal law, you need to learn your local and state housing laws as well.
The goal of the Fair Housing Act is to guide landlords on how to avoid discriminatory housing practices. Below are some examples of Fair Housing Act violations:
Informing a prospective tenant or buyer that the house is unavailable when it is, in fact, available.
One example is when a person in a protected class sees a property ad and inquires.
However, that person is then told by the landlord that it is no longer available, even if it isn’t true. Then the landlord rents it out to another tenant applicant who isn’t part of the protected class.
Refusing housing to a person who belongs to the protected classes.
This case can occur, for example, when a landlord refuses a blind tenant applicant because he has a service dog. Or when the landlord refuses a prospective tenant because the tenant has a mental disability.
Having different terms and conditions for the sale or rental of a property.
One example is when the landlord refuses to rent out the property to a family with kids. Moreover, the landlord charges the family with a higher security deposit. Then, the landlord informs the family with kids that they can only rent certain units in the building.
Tips to Avoid Violating the Fair Housing Act
1. Make sure that you’re consistent in your rental application screening.
Be consistent when you screen tenants so that you will not violate the Fair Housing Act. To do this, you should have the same qualifying criteria for all tenant applicants.
The legal criteria can be based on the applicant’s credit report, rental history, employment, income and criminal background. You should only reject the tenant if you believe the tenant will not be able to pay rent or cause considerable damage to your property. Additionally, you should require all tenant applicants to provide the same documentation, fees and referrals.
2. Make sure your property ads are appropriate.
Be mindful when you write property listings. You need to make sure that your ad isn’t discriminatory at all. There are some phrases that you must not include in your ad, such as:
- The apartment building refuses kids
- Property is professionals only
- Unit is perfect for singles
- Rental property is safe and exclusive
- Across the street to a local church
Most people might not misinterpret your intentions, but its best to stay on the side of caution. When you write a property ad, you must not suggest who would be the best match for your property. Instead, you can describe the property’s physical aspects, unique features and amenities.
Make sure your rental guidelines are clear. Include a link to this in your property listing.
3. Be sensitive to the needs of disabled tenants.
It’s not appropriate to ask the applicant if they’re disabled and what their disability is. You should also avoid asking a prospective tenant if they own a service pet. Disabled tenants have the right to enjoy fair housing, just like anyone else.
Service animals
Keep in mind that a service animal is not considered a pet. Rather, it's a necessity for a disabled person.
Since a service animal is not a pet, restrictions for pets don’t apply to the animal. Examples of restrictions include the size or weight of the pet or the mandatory pet deposit for tenants.
Some tenants also need support animals because they provide emotional support to the tenant applicant. Even if you have a “no pet” policy, you can’t refuse a tenant with a service or support animal.
Assigned parking
As a landlord, you can’t deny a request of a disabled tenant applicant for an assigned parking space. If you do, you might be violating the Fair Housing Act.
You must consult your lawyer first before denying the prospective tenant’s request. Even if you have available disabled parking, the prospective tenant might need a parking space closer to the property.
4. Be careful when you interview prospective applicants.
Understandably, you want to build rapport with prospective tenants by making small talk. To avoid being accused of discrimination, there are some questions that you shouldn’t ask your prospective applicant.
Aside from those related to disability, below are some questions you need to avoid asking.
- Familial status – “How many kids do you have?” or “When are you due?”
- Race, color and national origin questions – “What’s your first language?” or “What country are you originally from?”
- Religion questions – “Do you attend the church down the road?” or “Are you a Christian?” or “Are you Muslim?”
- Age and sex – “When are you planning to retire?” or “How old are you?”
As a landlord, you need to know and be familiar with the Fair Housing Act. There is much to gain by carefully complying with the Fair Housing Act, as well as state laws.
You’ll be able to avoid future problems, such as being sued by prospective tenants for violation. As a result, you’ll be able to save on legal costs, maintain your reputation and protect your rental business.
