It can be thrilling and satisfying to invest in single-family rental homes. However, becoming a landlord is more difficult than it may appear; prior to leasing your property to tenants, there are numerous details that must be mastered.
It is crucial for first-time rental property owners to have a fundamental understanding of leasing strategies and the applicable laws governing both the property and its occupants. We have put up a thorough guide covering all the essentials to assist you in leasing your first rental property. You can ensure that your first experience as a landlord is enjoyable by adhering to these straightforward rules.
Mastering Renter Screening
Acquiring all the information you need about a potential tenant is crucial to guaranteeing that you choose the right person for your rental property. You can accomplish this, for example, by having them complete a rental application with the names and dates of birth of all the intended occupants—minors included. Obtaining a minimum of three previous rental references and a recent employment history are also vital.
In addition, getting the Social Security numbers of all adult tenants and conducting background checks on them can reveal important details about their financial and personal histories. You can locate a qualified tenant for your rental property by using the procedures listed here to help you make an informed choice.
Before renting out your property to a rental applicant, make sure the information they submitted is accurate. This objective can be accomplished through the compilation of rental history information by contacting the individuals’ prior landlords. It may take some time, but doing extensive research prior to signing the lease can assist you in preventing future unpleasant surprises.
Ensuring Non-Discriminatory Practices
It is essential, when advertising for and screening prospective tenants, to avoid any form of discrimination,, whether deliberate or unintentional. Rental discrimination on the basis of race, sex, color, national origin, religion, disability, or familial status is explicitly forbidden by a number of US federal statutes. You must be aware of these laws and continuously comply with them.
– Fair Housing Act (FHA): Prohibits housing discrimination on the basis of religion, sex, national origin, race, national origin, or disability; ensures all other protected characteristics are respected. The terms and conditions of the tenancy, tenant selection, and advertising are all subject to the FHA’s regulations.
– Americans with Disabilities Act (ADA): It’s crucial to remember that the Federal Housing Administration (FHA) is prohibited from discriminating against individuals with disabilities by law. Landlords of structures containing four or more units are obligated to provide reasonable accommodations for tenants who are disabled. Installing grab bars in restrooms or offering accessible parking spaces are two examples of this.
– Age Discrimination in Employment Act (ADEA): A federal statute that guards against employment discrimination against people 40 years of age or older. Age-based housing discrimination is likewise forbidden by the ADEA.
– Equal Credit Opportunity Act (ECOA): A prohibition on discrimination in credit transactions, including rental transactions, is guaranteed by this federal legislation. Landlords are not allowed to treat people differently because of their race, color, national origin, religion, sex, marital status, age, or because they receive government assistance, according to the ECOA.
State and local laws should also be investigated, in addition to federal legislation. There may be additional protected classes governed by local regulations.
It’s imperative to steer clear of discriminatory language when writing rental advertisements. This involves a disclaimer that says you won’t rent to government assistance recipients, families with kids, or elderly people. Assessing candidates fairly on the basis of the data in their application is essential when screening them. Potential tenants can be safeguarded against discrimination by maintaining an air of professionalism and utilizing an impartial screening system.
Legal Obligations
It’s important to remember that a person with a disability does not always mean they are a suitable tenant for your property. Property owners are required by the Federal Fair Housing Act to provide their tenants with “reasonable accommodations“. Reasonable accommodation is “a change, exception, or adjustment to a rule, policy, practice, or service that may be necessary for a person with a disability to have an equal opportunity to use and enjoy a dwelling.” If a potential tenant satisfies the prerequisites for renting your property, their lack of accommodation should not serve as grounds for denial. With the understanding that they will return the property to its original state upon move-out, the renter will cover the cost and installation of the requested accommodations.
Even if your rental property has a strict pet policy, one accommodation you might need to think about is allowing service and emotional support animals. It’s vital to remember that rental pet policies do not apply to service or emotional support animals, and you are not allowed to charge extra for a tenant who chooses to keep a service animal on the premises.
It can be difficult to recall every law and best practice pertaining to the leasing of rental properties. Why not entrust this duty to a Pueblo property manager? Real Property Management Steel City assists owners of rental properties in finding the ideal tenants for their properties through transparent, non-discriminatory screening and leasing services. Contact us online today or at 719-948-8155 to learn more.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
