In the world of property management, navigating the legal landscape is just as important as managing tenant relationships and maintaining properties. Fair housing laws property managers must follow closely are one of the most critical areas of the job. Violating these laws can result in hefty fines, legal battles, and damage to your reputation. To ensure you’re in compliance, it’s essential to understand the key aspects of fair housing laws and how they apply to your day-to-day operations.
This blog will cover the basics of fair housing laws, what property managers should avoid, and best practices to ensure compliance.
Fair Housing Laws Property Managers Must Understand
The Fair Housing Act, enacted in 1968, is a federal law designed to prevent discrimination in housing. It prohibits discrimination based on race, color, national origin, religion, sex (which now includes gender identity and sexual orientation), familial status, and disability. Many states and local jurisdictions have additional protections, so it’s important to be familiar with both federal and local laws.
As a property manager, your responsibilities under fair housing laws cover every stage of the rental process—from advertising your rental units to interacting with tenants and processing applications. Here’s a breakdown of what you need to know.
Avoid Discriminatory Advertising
The language you use in rental ads is a key area where property managers often run into fair housing violations. Ads must be neutral and cannot indicate a preference for or against any of the protected classes. For example, using terms like “ideal for single professionals” or “no kids allowed” can be seen as discriminatory. Instead, focus on describing the property itself—highlight amenities, features, and location without implying any tenant preferences.
Fair Application and Screening Process
When screening potential tenants, it’s crucial to apply the same criteria to everyone. Setting consistent screening standards—such as credit score requirements, income verification, or rental history—is perfectly legal, but these standards must be applied equally to all applicants.
For example, you cannot ask more detailed questions about an applicant’s disability, family size, or religious practices, nor can you deny housing based on any of these factors. Be sure to stick to questions that relate to an applicant’s ability to pay rent and maintain the property.
Reasonable Accommodations and Modifications
Fair housing laws require property managers to make reasonable accommodations and allow modifications for tenants with disabilities. Reasonable accommodations can include things like providing accessible parking, allowing service animals in no-pet buildings, or adjusting lease terms to accommodate a tenant’s needs.
Reasonable modifications are changes to the physical structure of the property, such as installing grab bars or lowering countertops. Tenants typically bear the cost of modifications, but property managers must allow these changes as long as they do not pose an undue financial or administrative burden.
Family and Age Discrimination (Familial Status)
Familial status is a protected class under the Fair Housing Act, which means you cannot deny housing to families with children. You also cannot impose unreasonable restrictions, such as limiting families to certain floors or specific units. Property managers must be careful to treat all tenants equally, regardless of whether they have children or are planning to.
The only exception to this rule is housing specifically designed for seniors, known as “55 and over” housing. These communities are exempt from familial status protections but must meet strict legal guidelines to maintain their exemption.
Gender Identity and Sexual Orientation Protections
Recent legal updates, including a 2021 directive from the Department of Housing and Urban Development (HUD), clarify that gender identity and sexual orientation are now protected under the Fair Housing Act. This means property managers cannot discriminate against tenants or applicants based on their sexual orientation or gender identity. Treating all individuals with respect and providing equal opportunities is not just the right thing to do—it’s the law.
Fair Housing Laws Property Managers Should Enforce Consistently
One of the best ways to ensure compliance with fair housing laws is to have written policies and procedures that apply to all tenants equally. Documenting your standards for everything—from how you handle tenant applications to how you respond to maintenance requests—can protect you in case of a dispute. Make sure all employees or anyone involved in the leasing process is trained in fair housing practices and aware of these policies.
Handling Complaints
No matter how diligent you are, tenant complaints may arise. It’s important to take these complaints seriously and address them promptly. A fair and transparent process for handling complaints will not only keep you compliant with fair housing laws, but also improve tenant satisfaction and reduce the risk of escalation to legal authorities.
Understand Local Fair Housing Laws
In addition to federal laws, many states and cities have their own fair housing laws that may provide additional protections. For example, some jurisdictions include protections for source of income (such as housing vouchers), marital status, or military status. Make sure you are familiar with the fair housing regulations in your specific area, as these can vary widely from place to place.
In the state of Georgia, the Fair housing act was passed to ensure residents can fairly compete for housing within their economic means and on an equitable basis. Within the Georgia law, you must not discriminate against anyone by:
- Refusing to rent or sell a house.
- Falsely denying that a house is available for inspection, sale, or rent.
- Offering different terms, conditions, or privileges for certain people.
- Intimidating, interfering with, or coercing someone to prevent them from buying or leasing a dwelling.
- Advertising or posting notices, sale or rental, that indicate a preference, limitation, or discrimination.
- Discriminating through financing or broker’s services.
- “Steering” of clients by real estate agents to or from certain neighborhoods and of tenants by landlords to or from certain areas of the complex.
Read more about fair housing best practices on the Georgia website HERE.
Fair Housing Laws Property Managers Compliance Best Practices
To stay compliant and avoid fair housing violations, follow these best practices:
- Train Your Staff: Ensure that anyone involved in the leasing process understands fair housing laws and knows how to implement them.
- Standardize Procedures: Develop written policies for tenant screening, maintenance requests, and lease renewals to ensure consistency.
- Keep Records: Document interactions with tenants and applicants. Keeping thorough records can protect you if a discrimination claim arises.
- Consult Legal Experts: If you’re ever in doubt about a fair housing issue, consult an attorney who specializes in real estate and housing law. It’s better to get advice before a problem arises than to deal with a lawsuit afterward.
How Sid Was Here Helps With Fair Housing Laws Property Managers Face
Navigating fair housing laws is essential for every property manager. By familiarizing yourself with the legal requirements and maintaining a fair and transparent approach to property management. You can avoid costly violations and foster positive relationships with your tenants. Compliance isn’t just a legal obligation—it’s also an ethical commitment to providing equal housing opportunities for all.
By implementing these strategies and staying up-to-date with both federal and local fair housing regulations, you’ll be well-equipped to run a fair, compliant, and successful property management business. Need more help? Contact Sid Was Here today to learn more about how we help our property managers with fair housing practices.
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