Understanding Fair Housing Laws

Property management companies need to carefully follow federal and state anti-discrimination laws so they are not faced with lawsuits. It’s no defense to say, “I didn’t know…” when brought to court. If you’re a property manager or landlord, you need to know these laws.

According to the Fair Housing laws, you cannot refuse to rent to someone because of their color, race, religion, nationality, handicap, sex, or familial status. You also cannot set different rental terms or housing services to select tenants. Your reasons for refusing may be good, but you need to make sure you have proof. Here are some tips to make sure important information does not fall through the cracks:

1. Know the facts. You and all of your employees should be familiar with the Fair Housing website and the information it contains. If your company faces a lawsuit it will hurt everyone so make sure your employees have all the tools and information they need to make the right decisions.

2. Have a set policy for performing credit checks and screening applicants that are never bypassed. That written information can support your decision for refusing to rent to a person.

3. Check the references of each potential renter. It’s one thing to run a computer background check but it’s another to actually speak with a person’s references. Make sure their employment status is up to date and that they are reliable about paying rent. These are key areas for determining who you should rent to.

4. Keep the information. After you have the necessary documentation, make sure it’s recorded and kept. You can refuse to rent based on criminal or credit history, lack of funds or a history of slow payments and the documentation you gathered will be your proof.

5. Treat everyone the same. Never choose who to rent to based on your feelings or anything other than the documentation in the previous points.

Don’t let a gray area hurt your property management company. Avoid discrimination claims and lawsuits by staying educated and always make decisions based on documented evidence.