Navigating the rental market requires more than just finding tenants and maintaining properties. Landlords and property managers must also adhere to a complex set of fair housing laws designed to ensure equality and prevent discrimination. Let’s break down the essentials of these laws and how they impact property management.
The Basics of Fair Housing Laws
Historical Context
Fair housing laws originated from the civil rights movement, aiming to eliminate discriminatory practices in the housing sector. The cornerstone of these laws is the Fair Housing Act of 1968, which prohibits discrimination based on race, color, religion, sex, national origin, disability, and familial status.
Key Provisions
- Race and Color: Landlords cannot refuse to rent, sell, or negotiate based on race or skin color.
- Religion: Housing decisions must not be influenced by a person’s religious beliefs.
- Sex: Discrimination based on gender, including issues related to sexual harassment, is prohibited.
- National Origin: Tenants must not be treated differently due to their country of origin.
- Disability: Reasonable accommodations must be made for tenants with disabilities, and discriminatory practices are banned.
- Familial Status: Families with children under 18, pregnant women, and people securing custody of children cannot be discriminated against.
State and Local Fair Housing Laws
While the Fair Housing Act is federal law, many states and localities have additional protections. For example, some states include protections based on sexual orientation, gender identity, and source of income.
Example: Virginia Fair Housing Law
In Virginia, the state’s fair housing law includes all the federal protections and adds more categories, such as elderliness and marital status. Landlords and property managers must be familiar with both federal and local laws to ensure full compliance.
Common Pitfalls and How to Avoid Them
Advertising
Pitfall: Using language in listings that implies preference or discrimination.
Solution: Use neutral language focused on the property’s features rather than the type of tenant. For example, say “two-bedroom apartment with a view” instead of “ideal for young professionals.”
Tenant Screening
Pitfall: Applying different standards to different applicants.
Solution: Develop and adhere to a consistent screening process. Use the same criteria for credit checks, background checks, and references for all applicants.
Reasonable Accommodations
Pitfall: Failing to make necessary modifications for tenants with disabilities.
Solution: Understand what constitutes a reasonable accommodation, such as installing grab bars in bathrooms or allowing service animals, and be prepared to make these adjustments.
Case Study: Handling a Fair Housing Complaint
Imagine you manage a property for Nesbitt Realty, and a complaint is filed alleging discrimination against a tenant with a disability. Here’s how to handle it:
Step 1: Investigate Promptly
Conduct a thorough investigation by reviewing the complaint, interviewing the parties involved, and examining any relevant documentation.
Step 2: Respond Appropriately
Address the complaint professionally and swiftly. If discrimination occurred, take corrective actions such as training staff, implementing new policies, or making necessary accommodations.
Step 3: Document Everything
Keep detailed records of the investigation, findings, and actions taken. This documentation is crucial if the matter escalates to legal proceedings.
Best Practices for Compliance
Training and Education
Regularly train all staff on fair housing laws and best practices. Ensure everyone understands the importance of compliance and the potential consequences of violations.
Policy Development
Create clear, written policies on tenant screening, reasonable accommodations, and advertising. These policies should be consistently applied and regularly reviewed.
Regular Audits
Conduct regular audits of your practices and procedures to ensure compliance with all relevant laws. This proactive approach can help identify and correct issues before they become major problems.
Conclusion
Understanding and complying with fair housing laws is essential for landlords and property managers. By staying informed, implementing best practices, and fostering an inclusive rental environment, you can avoid legal pitfalls and promote fairness in housing.
At Nesbitt Realty, we’re committed to helping property owners and managers navigate these complex regulations, ensuring your operations are both legally compliant and ethically sound.
