{"id":87587,"date":"2020-06-10T15:00:09","date_gmt":"2020-06-10T21:00:09","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=87587"},"modified":"2024-08-26T08:40:35","modified_gmt":"2024-08-26T14:40:35","slug":"understanding-fair-housing-laws","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/understanding-fair-housing-laws","title":{"rendered":"The Fair Housing Act and Landlords: What You Should Know"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC2502532763\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p>The <a href=\"https:\/\/www.hud.gov\/program_offices\/fair_housing_equal_opp\/fair_housing_act_overview\" target=\"_blank\" rel=\"noreferrer noopener\">Fair Housing Act<\/a> (FHA) ensures any person can buy or rent a house or apartment wherever they want regardless of their race, ethnicity, gender, religious preference, disability, family status, or national origin. In 2015, the United States added discrimination based on sexual orientation or gender identity to the list of protected classes.&nbsp;<\/p>\n\n\n\n<p>As a landlord, you should be familiar with the FHA and what it covers. Both federal and local governments have <a href=\"https:\/\/www.biggerpockets.com\/blog\/the-important-laws-and-regulations-all-landlords-must-remember\" target=\"_blank\" rel=\"noreferrer noopener\">rules regarding fair housing<\/a>, and you need to understand these requirements to protect yourself and your property. Knowing the details of this legislation can prevent legal issues with tenants for violations involving discrimination. It can also help guide your marketing strategy so you avoid using language that can be construed as discriminatory.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Brief History of the Fair Housing Act<\/h2>\n\n\n\n<p>As part of the Civil Rights Act of 1968, the Fair Housing Act prevents housing discrimination and ensures equal opportunities for all tenants and homebuyers. It was enacted during the Civil Rights Movement and signed into law by then-president Lyndon B. Johnson. Over the years, the FHA has been amended to include protection for people with disabilities and to prevent discrimination based on gender or the number of children in a family.<\/p>\n\n\n\n<p>Several court cases have brought about changes to the FHA to further protect citizens from unfair practices in renting and buying a home and to bring attention to this ongoing problem. Unfortunately, the FHA doesn\u2019t actually list the words you can\u2019t use in marketing communications for your rental property. So you must use your judgment to decide what works and what doesn\u2019t. A good rule of thumb is to avoid exclusionary words like \u201cno\u201d or \u201conly,\u201d unless the exclusion is clearly allowed by law (e.g., \u201cno drugs\u201d or \u201cno smoking\u201d).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Protected Classes Under the Fair Housing Act<\/h2>\n\n\n\n<p>Let\u2019s take a closer look at the protected classes under the FHA so you understand which groups have protection under this law, as well as how to avoid discriminating against potential tenants when advertising your rental unit or home for sale.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Federal protected classes<\/h3>\n\n\n\n<p>The Fair Housing Act prohibits discrimination in housing because of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Race or color:<\/strong> A landlord, lender, or developer cannot discriminate against an individual from renting or owning property because of their race or skin color. So you can\u2019t state, for example, that an apartment is located in a \u201cpredominantly African-American neighborhood,\u201d but you can use words like \u201cmaster bedroom,\u201d \u201cdesirable neighborhood,\u201d and \u201cexceptional find\u201d to attract tenants.&nbsp;<\/li>\n\n\n\n<li><strong>National origin:<\/strong> A person\u2019s nation of origin cannot be a factor when determining eligibility for renting or owning property. This means you can\u2019t use language that excludes or deters someone from another country from renting your property.<\/li>\n\n\n\n<li><strong>Religion:<\/strong> Landlords can\u2019t base tenant approval decisions on the religious beliefs or practices of prospective renters. In other words, you might not want to say the property is close to a Catholic church, but instead be more general, saying it\u2019s near local religious organizations.<\/li>\n\n\n\n<li><strong>Sex:<\/strong> While sexual discrimination was added to the FHA later, a tenant\u2019s sex, gender identity, and sexual orientation are all protected under the law. You can\u2019t say you prefer women to men in your advertisement or that you\u2019ll only rent to those with alternate lifestyles.<\/li>\n\n\n\n<li><strong>Familial status:<\/strong> A landlord cannot discriminate against a person because of their marital status or number of dependents. Married or unmarried, kids or no kids, a landlord can\u2019t restrict their property based on these factors, according to the FHA.<\/li>\n\n\n\n<li><strong>Disability:<\/strong> Under the FHA, landlords must not discriminate against people with mental or physical impairments or hinder their ability to find housing. Avoid using any words in your marketing that might alienate people with disabilities, and try to make accommodations for them when reasonably possible.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Additional protected classes under state and local laws<\/h3>\n\n\n\n<p>The classes protected under the FHA apply in every state and local community in the nation. However, your state may have additional housing laws and regulations that protect other classes or groups. There may also be differences in fair housing laws at the state and local levels that can affect you as a landlord. Check with your local housing authority and consult your legal team to ensure you\u2019re following the law in your state.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Fair Housing Compliance Tips for Landlords<\/h2>\n\n\n\n<p>Use these tips to ensure you comply with fair housing laws in your area.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Take care when asking tenants questions<\/h3>\n\n\n\n<p>The Fair Housing Act doesn\u2019t just apply to your marketing efforts\u2014it matters when you meet with prospective renters, too. Avoid certain types of questions or statements that may be taken as derogatory in nature, and keep in mind that wording and tone are important as well. Don\u2019t ask questions such as, \u201cJust how many children do you have?\u201d or \u201cWhere do you worship?\u201d<\/p>\n\n\n\n<p>Also avoid comments about a person\u2019s age, gender identity, or sexual orientation, or you may unintentionally be using discriminatory practices. Maintain professionalism during tenant interviews and showings because a simple misinterpretation could be viewed as discriminatory and may provide the foundation for a potential complaint.&nbsp;<\/p>\n\n\n\n<p>Consider making a template before you meet with potential tenants. This will provide more structure for your conversation so you avoid potential FHA problems or violations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Treat all rental applicants equally and consistently<\/h3>\n\n\n\n<p>Stay on the legal side of the Fair Housing Act by being a good person. Treat everyone equally, and be consistent. Know what questions to ask\u2014and what responses you want\u2014and determine qualification standards ahead of time.<\/p>\n\n\n\n<p>When filling a vacancy, have a predetermined set of qualifications that you require of all applicants. Your qualification standards should be based on valid business reasons. For example, you can set a minimum income requirement. Just make sure you never set different requirements for different people.<\/p>\n\n\n\n<p>Once your tenant has moved in, stick to the lease. Have a written policy for how to respond to all situations\u2014and don\u2019t deviate from it. Deviating from your lease or policy indicates inconsistency, which may lead to an accusation of partiality.<\/p>\n\n\n\n<p>For example, if your lease states that a late fee will be charged for rent not paid by the fifth day of the month, you must always enforce the policy equally for all your tenants. Regardless of your reasoning\u2014say one tenant was nice and the other a jerk\u2014enforcing it unfairly could quickly get out of hand. Practice consistency and stick to your written policies, and you should come out ahead.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Ditch the assumptions<\/h3>\n\n\n\n<p>When filling a vacancy, don\u2019t assume you know your potential tenant or what they want. Don\u2019t make assumptions about the type of dwelling or neighborhood prospective tenants might prefer. Pointing persons toward specific units or neighborhoods is discriminatory and could <a href=\"https:\/\/www.biggerpockets.com\/blog\/9-ways-a-tenant-can-get-their-landlord-in-trouble\" target=\"_blank\" rel=\"noreferrer noopener\">get you into trouble<\/a>, even if you think you\u2019re being nice or trying to help.<\/p>\n\n\n\n<p>Tell prospective tenants about all your available properties. Let them decide which ones they would like to see and which ones they want to avoid.&nbsp;<\/p>\n\n\n\n<p>Consider pulling together a predetermined list of questions for every potential tenant. Include questions about their price range, type of housing they prefer, and the size and location they\u2019re looking for. This way, you can quickly and legally point them toward any available rentals you have that meet those requirements. Let them pick the place that suits them best.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Keep thorough records<\/h3>\n\n\n\n<p>Keeping records of current and former tenants and all prospective tenants is extremely important for a landlord. Not only will detailed records protect you in the event of a discrimination charge, but it\u2019s also good business practice.&nbsp;<\/p>\n\n\n\n<p>When renting out your unit, keep notes of each tenant contact, including the date and time and whether you meet in person or speak on the phone. Also, keep records of your <a href=\"https:\/\/www.biggerpockets.com\/blog\/how-to-screen-tenants\" target=\"_blank\" rel=\"noreferrer noopener\">tenant screening<\/a> results. If you deny a tenant, send them an adverse action notice, and keep all the information you collected.<\/p>\n\n\n\n<p>The same goes for current and past tenants. Each tenant should have their own file where you store all their information. Keep records of phone calls, emails, letters, texts, complaints, notices, maintenance requests, and repairs.&nbsp;<\/p>\n\n\n\n<p>After the tenant leaves, don\u2019t toss their file\u2014keep it in case you ever need it. Not only could it protect you, but accurate, detailed records also make your job much easier.<\/p>\n\n\n\n<p>When keeping records, try to think of it this way: You\u2019re telling a story from beginning to end. If someone other than you were to read it, would the story be absolutely clear? This should be your goal when making notes and keeping records.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Consequences of Fair Housing Act Violations<\/h2>\n\n\n\n<p>Violating the FHA comes with consequences. If you\u2019re found guilty of committing an FHA violation, you could be fined up to $21,663 for the first violation. Landlords who commit a violation within the previous five years can be liable for a fine of up to $54,157. For two or more violations within the previous seven years, you can be slapped with a $108,315 fine.&nbsp;<\/p>\n\n\n\n<p>On top of your fine, you\u2019ll also have to pay all your legal and court fees, as well as any restitution a judge determines you owe to tenants harmed from your discrimination. Not only can you end up paying a lot of money for an FHA violation, but it could also hurt your reputation. You want to attract more tenants to your rental properties, not less.<\/p>\n\n\n\n<p>As you can see, it\u2019s best to ensure your property is open and available to anyone who wants to rent it. By having tenant criteria dialed in before you ever rent your property and knowing the laws in your area regarding housing opportunities, you can avoid legal issues with your tenants.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Fair Housing Act FAQ<\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1718737502575\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">What are the exemptions to the Fair Housing Act?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>While the Fair Housing Act applies to most housing situations, these are some exemptions every landlord should know:<\/p>\n<p>Dwellings with four units or fewer where the owner occupies one unit are exempt.<br \/>If a landlord owns no more than three single-family rental units and rents them without the use of a broker or agent, they\u2019re exempt.<\/p>\n<p>Housing intended for people aged 55 and older can get an exemption for the familial status part of the FHA if it meets certain criteria.<\/p>\n<p>Religious organizations that rent property can give preference to members as long as the organization meets certain criteria.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1718737546759\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">What should you (the landlord) do if you receive a discrimination complaint?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>No matter how well you try to protect yourself and ensure you follow the FHA, you could still receive a discrimination complaint from a current or past tenant. Your tenants typically have up to one year to make a complaint.\u00a0<\/p>\n<p>If this happens, a fair housing agency will do an investigation to get the facts. They may throw the case out if they find no evidence of discrimination. However, if they believe you violated the FHA, you will have a hearing before a judge.<\/p>\n<p>In some cases, a landlord and tenant may come to an agreement to avoid further legal involvement. This could involve offering money to the discriminated party or allowing them to rent your property. Having detailed information to present in court about your interactions with the tenant can help your case. You may need to seek legal counsel.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1718737562850\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">Who enforces the Fair Housing Act?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>HUD\u2019s Office of Fair Housing and Equal Opportunity enforces fair housing laws. This is the department that will assign someone to investigate an FHA complaint against a landlord.<\/p>\n<p>Local agencies enforce state and local fair housing laws. For example, in Texas, the Texas Workforce Commission is tasked with enforcing and investigating fair housing violations. It may be a different agency in your state, so look into this before you rent or sell your property.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1718737576157\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">Are emotional support animals protected under the Fair Housing Act?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The Fair Housing Act protects people with disabilities. Therefore, if a person has a disability that requires them to have an <a href=\"https:\/\/www.biggerpockets.com\/blog\/landlords-emotional-support-animals\" target=\"_blank\" rel=\"noreferrer noopener\">emotional support animal<\/a>, a landlord can\u2019t deny their rental request even if they don\u2019t allow animals. Because landlords must make \u201creasonable accommodations\u201d for people with disabilities, they must rent to a tenant with an emotional support animal if they meet other requirements, such as having the right income and credit score.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1718737593941\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">Do fair housing laws apply to private landlords?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A private landlord who has three or fewer rental properties doesn\u2019t have to comply with the FHA if they don\u2019t use an agent to rent the unit. Landlords who own complexes with four or fewer units are also exempt from FHA laws as long as they occupy one unit.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\">Final Thoughts<\/h2>\n\n\n\n<p>Knowing about the real estate industry and the laws and regulations surrounding it can empower you to grow your real estate business. Following the guidelines set forth by the Fair Housing Act will help you avoid any legal issues when renting your property.&nbsp;<\/p>\n\n\n\n<p>The FHA is there to create equal opportunities for everyone to live comfortably. Doing your part to ensure housing is fair in your community can make it a better place to live. Familiarize yourself with the FHA before you market your property, and try to use inclusive language that makes your property appealing to everyone.<\/p>\n\n\n\n<div id=\"hero-block_ce49617982cfff04c7dbc75943e9a9c1\" class=\"first:mt-0 hero-block py-4    has-background has-slate-300-background-color has-text-color has-slate-800-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-2\/3 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-theme-slate-color has-text-color has-large-font-size\"><strong>Save time and money with this refreshing guide to managing your own properties<\/strong>.<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px\">In <em>The Self-Managing Landlord<\/em>, Amelia McGee and Grace Gudenkauf share the secrets of efficient property management, tenant screening and onboarding, and scaling your business\u2014all to help you break free from the 9-to-5 grind and create lasting wealth through real estate.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-theme\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/store.biggerpockets.com\/products\/self-managing-landlord\" target=\"_blank\">Get Your Copy<\/a><\/div>\n<\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/3 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/04\/SML_Cover.jpg\" alt=\"self-managing landlord book cover\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>The Fair Housing Act isn&#8217;t designed to scare you\u2014but it does require landlords follow a number of laws to prevent housing discrimination. These tips will keep you out of costly lawsuits.<\/p>\n","protected":false},"author":710,"featured_media":174256,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5183,7119],"tags":[],"class_list":["post-87587","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-landlording","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/87587","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/710"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=87587"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/87587\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/174256"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=87587"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=87587"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=87587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}