It can be both exciting and lucrative to invest in single-family rental properties. But as difficult as it may seem, owning a property is a serious business, and there are a lot of things you should know before renting out your space.
Knowing the fundamentals of leasing tactics and the laws that affect both you and your tenants is crucial for anyone purchasing their first rental property. In order to assist you in leasing your initial property, we have compiled an all-encompassing guide that addresses the fundamentals. You can have a good first experience as a landlord by adhering to these easy rules.
Mastering Renter Screening
In order to secure an appropriate tenant for your rental property, it is critical to collect all pertinent information regarding them. A rental application that requests the names and birth dates of all intended occupants, including minors, is one way to accomplish this. It is also imperative to obtain a minimum of three previous rental references and a recent employment history.
In addition, conducting a background check and collecting the Social Security numbers of all adult renters can yield significant insights regarding their personal lives and financial transactions. You can find a reliable tenant for your rental property and reach an informed conclusion by adhering to these steps.
Before consenting to a rental applicant’s request to lease your property, verify the information they provide. This can be accomplished by getting information about their rental history from their prior landlords. Doing extensive research before signing the lease can help you avoid unpleasant surprises later on, even though it might take some time.
Ensuring Non-Discriminatory Practices
Avoid any form of discrimination, whether intentional or not, is essential when advertising for and screening potential tenants. Prejudice against renters on the grounds of race, sex, color, national origin, religion, handicap, or familial status is specifically illegal under a number of federal laws currently in effect. You have to be aware of these laws and follow them all the time.
– 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 FHA is applicable to every stage of the rental procedure, encompassing advertising, tenant selection, and tenancy terms and conditions.
– Americans with Disabilities Act (ADA): Remember that there is a law against discrimination against individuals with disabilities enforced by the Federal Housing Administration (FHA). Landlords of structures containing four or more units are obligated to provide reasonable accommodations for tenants who are disabled. Possible solutions encompass the installation of grab bars in restrooms or the provision of accessible parking spaces.
– 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 also prohibited by the ADEA.
– Equal Credit Opportunity Act (ECOA): Rent transactions and other credit-related transactions are protected from discrimination by this federal law. Landlords are prohibited by the ECOA from engaging in unlawful discrimination practices against tenants on the basis of their political affiliation, national origin, religion, race, color, sex, marital status, age, or welfare status.
It’s crucial to study state and local laws in addition to federal law. Local laws might provide for additional protected classes.
It is imperative that rental advertisements refrain from using discriminatory language. Saying that you won’t rent to elderly people, families with kids, or people on government assistance is part of this. Encouragingly evaluating applicants according to the data in their application is essential when screening them. You can make sure you’re not discriminating against potential tenants by upholding professionalism and utilizing an impartial screening process.
Legal Obligations
It’s critical to refrain from assuming that a person with a disability isn’t a suitable fit to rent your property. Property owners are required by the Fair Housing Act to provide “reasonable accommodations” for their tenants. 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.” Accommodations shouldn’t be a justification for turning away a potential tenant if they fit the requirements to rent your property. The requested accommodation will be furnished and installed at the tenant’s expense, with the stipulation that the tenant will return the premises in their original state upon vacate.
Even if your rental property has a strict policy prohibiting pets, you may need to consider allowing service and emotional support animals as one of the accommodations. It is essential to note that service and emotional support animals are exempt from rental pet policies; if a tenant decides to keep a service animal on the property, you cannot charge additional rent or fees.
It can be difficult to stay on top of all the laws and best practices related to renting out properties. Why not entrust this duty to a Staunton property manager? Our goal at Real Property Management Summit is to assist our rental property owners in finding the best tenants for their properties through transparent, non-discriminatory screening and leasing processes. Contact us online today or at 540-315-8090 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.
