How To Avoid Rental Property Discrimination Complaints

Anyone, who has been in the rental housing business for a long time, will have heard about expensive legal compensation awards against rental property owners for the violation of fair housing laws. Often, issues arise when landlords and owners of investment property are unaware their rental policies can be viewed as discriminatory. Refusing to rent out to families with young children or the disabled is prohibited by federal and state laws, which can impact your advertising, tenant screening, and selection process.

According to the Federal Fair Housing Act, one is not allowed to discriminate on the basis of race, colour, religion, national origin, sex, age, familial status, and disability. In addition, on checking out the state and local fair-housing laws; you will find some additional state and local protected classes include sexual preference, gender identity, occupation, source of income (government assistance, Section , educational status, medical status, and even physical body size. In brief, rental property owners are prohibited from discriminating on any of the above grounds.

If it is proved, investment property owners have discriminated, they are liable to be faced with serious legal consequences. It is important for landlords to know about federal and state laws governing property, as they may be guilty of following various forms of discrimination, without even realizing it.

For the uninitiated, there is another illegal form of discrimination prevalent in residential rental properties. Steering is illegal guiding of rental applicants toward where a landlord thinks he / she should live based on their race, colour, religion, national origin, sex, age, familial status, disability or handicap, or any other protected class. Refusing to show or rent certain residential units to minorities is one form of steering; however, assigning individuals to a particular section or floor of a building, based on race, colour, religion, sex, handicap, familial status, or national origin, is another. Advertising or implying a preference is also a form of discrimination.
In keeping with the Federal Fair Housing Act, all commercial and residential rental applicants are entitled to receive information about the full range of vacancies or availability of rental units, so that they are able to make their own selection of suites or units, they wish to see.

Even though, you recommend a rental prospect on the ground floor or near a playground, to a family with children, with the best of intentions, you may be in clear violation of current federal fair housing laws for restricting housing options.

Families With Young Children: Federal and state legislation has virtually eliminated ‘adult only’ residential housing expect for certain HUD-certified properties for senior citizens. In accordance, owners of residential rental properties must offer vacancies to families, including those with small children. If you have concerns that your property does not have any safe playing areas for young children, it is for the parent’s to decide, whether it is truly so.

It is also illegal to charge higher rents or security deposits from rental applicants with children, including offering different rental terms, such as, shorter lease terms, different payment options or fewer unit amenities. Unless, there is a safety issue involved, property facilities must be made fully available to all tenants, regardless of their age.

Renting to families is a safer option for rental property owners, as they tend to be more stable, and look for safe, crime and drug free environment to raise their children. Along with pet owners, families with children, often, tend to be excellent, long-term renters.

Tenants with disabilities: Federal fair housing regulations stipulate property owners are responsible for making reasonable accommodations at their own expense for disabled tenants. If requested, the landlord must make reasonable adjustments to rules, procedures, or services, e.g. if it is practical, a landlord must provide a more convenient or wider parking space. If a disabled tenants wishes to modify his / her living space at his / her own expense, a landlord must allow them to do so under the following conditions:
• He / she may allow only those modifications that are necessary to make the space safe and comfortable.
• As long as the unit is not unacceptable to the next tenant, or else, the tenant agrees to restore the rental unit to its original condition on moving out.
• Prior approval must be obtained before carrying out modifications and the tenant must ensure the work is done professionally, in accordance with necessary government approvals or permits.
• The tenant must pay necessary funds for restoration into an interest-bearing escrow account, as surety the work will be completed and no liens are placed against your property.

As well, service animals assisting tenants with daily life activities must be allowed in all rental properties, regardless of any no-pet policies. A tenant is also allowed to keep a pet under “necessary and reasonable accommodation” provisions of the American Disabilities Act (ADA). Federal law requires landlords to consider a tenant’s claim or grant a reasonable request to keep a companion animal for comfort or companionship.

As long as, there is a written rental agreement, a landlord can protect his / her property interests, and which also gives legal recourse, in case something goes wrong with a tenant or potential tenant. Avoid any mishaps or unwanted tenants by visiting www.e-renter.com for help with tenant screening and background checks, the best and only way to prevent expensive litigation or penalty charges later on.