Fair Housing Laws for Landlords

Looking for that perfect tenant - one who pays their rent on time every month, takes good care of the property, and doesn't disturb the neighbors? Where do you find a perfect tenant like that and how can you advertise to attract those ideal tenants? Keep in mind, during that search for the ultimate tenant, a landlord must always keep fair housing laws in mind.

When we speak of fair housing regulations for landlords, we are referring specifically to the Fair Housing Act that originated as part of Title VIII of the Civil Rights Act of 1968. This act prohibits discrimination against a potential tenant on the grounds of race, color, familial status, handicap, sex, religion or national origin. Landlords must avoid issues of discrimination in each of these areas.

Housing discrimination cases have been and continue to be the largest single complaint reported under the Fair Housing Act. According to the National Fair Housing Alliance (NFHA), private fair housing group complaints constituted over 14,000 of the 17,000 total discrimination complaints received in 2006. The remaining cases reported were related to practices such as denying the availability of units, high rents and security deposits, and minority steering.

It is important to note that it is illegal for a landlord to discriminate directly toward an individual on these issues. But, it is also illegal to advertise your preference for or against any of these protected classes. This law, against the discriminatory advertising practices, applies to single family units and owner-occupied housing which are otherwise exempt from Fair Housing laws. So, even if you are advertising to rent a unit, be extremely careful in the wording of your advertisements and keep the focus of the ad on your property and not on the people you wish to attract.

The National Association of Realtors' (NAR) Office of Legal Affairs suggests the following tips:

• Use words that describe features of the property rather than describing the type of buyer that might want those features. For example, describe the property as ‘located near a scenic park with jogging track in the woods' as opposed to ‘great location for joggers, athletic people or nature lovers'.
• Avoid words that relate to race, color, religion, age, familial status, or national origin ("Heart of China Town", "Hispanic neighborhood" , "adult building", "walking distance to Baptist church", etc.)
• Avoid using descriptive words such as "exclusive," "private," or "integrated" that convey preferences for one group over another or may tend to characterize a community's makeup.

• Do not make references to nearby landmarks that may be racial, ethnic, or religious in nature.

Because of the broad language of the laws affecting fair housing, a simple expression of a preference can get a landlord into trouble. There are unfortunately, plenty of opportunities to inadvertently discriminate against prospective tenants. For instance, simply describing an apartment as ‘perfect for a couple' discourages prospective tenants who have children. This type of communication is considered discriminatory against individuals with children. Even a policy that does not expressly forbid a certain group can be problematic. A landlord may express a preference of renting to no more than two people for a two-bedroom apartment, which would effectively prohibit families.

There are a few exceptions to the fair housing laws. An exemption for shared housing - rentals in which tenants share bathrooms, kitchens or other common areas - allows landlords to limit tenants on the basis of sex only. There is also an exemption on housing for older tenants which is quite common these days as the population ages and more retirement communities have been built. Landlords are exempt if the rental property leases exclusively to tenants 62 years old and up, or if 80 percent of a complex's occupied units have at least one tenant 55 or older. It if fair to say, landlords can also advertise legally and directly concerning these unique situations.

Landlords may request financial information from prospective tenants and refuse to rent to those tenants who are unfit financially to pay the asking rent. Landlords may also request references from previous landlords and opt to deny the tenant based on their past behavior. Certain areas of tenant selection like these may seem somewhat discriminatory, but landlords are allowed to use these techniques to protect themselves financially.

It can often be confusing for the average landlord to know when and how to avoid violating fair housing provisions. In general, the simplest ways for a landlord to avoid problems is to refrain from discussing any sort of tenant or personal preferences. When renting a unit, avoid asking questions about the various protected categories. Stay away from asking about age, marital status, nationality or religious beliefs. It is fair that a landlord ask the number of individuals in a prospective tenant's household, but steer clear of asking the ages and sex of those individuals. Local governmental housing agencies often provide sample tenant applications and other advice to landlords, especially regarding state and municipal policies regarding fair housing, which can differ, or expand on, federal law.

Should you find yourself with an applicant or a tenant that is proclaiming they've been violated, do not overreact. Keep in mind it is just as illegal to threaten, coerce, intimidate or otherwise interfere with anyone exercising their rights. There are stiff consequences for non-compliance in any format. If a judge finds in favor of a tenant, a landlord can be fined as much as $10,000 for a first violation. This doesn't include any compensation to the individual for other damages that may be included as part of the law suit. This type of law suit can be extremely expensive, in both money and time. Needless to say, consult with a good Landlord/Tenant Attorney in your area. Make sure your rental application is up to date, your advertisements are worded properly and you are in legal compliance in all aspects of Fair Housing Practices.

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