6. Never Make Housing Rules Involving Children
Several years ago, many property managers had policies such as “one bedroom for every child.” If a single parent and a child shared a bedroom, for example, the property management would require them to lease a two-bedroom unit instead of a one-bedroom. Unfortunately, you can’t do this anymore, as it has since been ruled as discriminatory.
However, do not confuse this with local occupancy regulations. For example, some towns allow landlords to limit a two-bedroom apartment to four occupants.
Likewise, property managers can’t put families on one side of the apartment complex and people without children on the other. Pets? Sure. Children? No.
HUD has been aggressively pursuing discrimination cases for the last five years. In 2013, they launched a mobile app to help people report Fair Housing violations. They want to make an example of landlords and property managers, gain publicity for these cases, and win money in court.
Other Things You Can Do To Avoid A Hefty Fair Housing Lawsuit
Six situational tips won’t cut it. As a landlord, it’s your job to cover your behind as well as you can, and there are other things you can do to avoid a Fair Housing lawsuit, like:
Educate Yourself (And Your People)
If you’re a solo landlord, you must stay on top of fair housing law developments to avoid ugly surprises like lawsuits and complaints. (Sidenote: You might also want to make life easier by using Spark Rental’s landlord app.)
If you have people on payroll, it’s also important to keep them in the loop. Remember, one mistake from one person can land your whole operation in hot water.
Have Your Policies Lined Up
The first order of business in renting out is to get your policies in order and accordance with state and federal laws. The second order of business is applying them consistently across all tenants and applicants—no exemptions.
This way, even if you are sued for Fair Housing discrimination, you can easily state that your policies are uniformly applied to everyone you deal with. However…
Always Consider Reasonable Accommodations
…there are instances where the law would call for reasonable accommodations. According to HUD, “a reasonable accommodation is a change, exception, or adjustment to a rule, policy, practice, or service that may be necessary for a person with disabilities to have an equal opportunity to use and enjoy a dwelling, including public and common use spaces, or to fulfill their program obligations.”
Reasonable accommodations include the following:
- Installing ramps for wheelchair access
- Modifying existing facilities for easier access by disabled persons
- Allowing service or emotional support animals despite a “no pets” policy
- Providing a reserved parking space close to the entrance for tenants with mobility impairments
- Installing grab bars in bathrooms
- Modifying kitchen cabinets for a tenant in a wheelchair
- Allowing a tenant with PTSD to break their lease early without penalty if they need to move for treatment
However, as the word “reasonable” implies, there are limits. Again, as per HUD, you can deny any modifications that will cause you extensive financial or administrative burden. You can also deny a request if it’s not made by or on behalf of a disabled person.
Document EVERYTHING
Though paperwork seems like a necessary evil, it’s a good friend when avoiding Fair Housing Lawsuits.
Always keep a detailed record of all interactions with tenants and applicants. Have them sign an official document if any decisions or concessions are made. Don’t leave things to chance here; always have a paper trail.
Final Thoughts
Be very, very careful when advertising your rental unit and screening your rental applications.
If there is even a suspicion that you may have rejected an application based on something other than their financial or credit history, expect a lawsuit. If you show any inclination toward one group of applicants over another, expect a lawsuit. Do not pass Go; do not collect $200.
So, apply these tips to avoid a Fair Housing lawsuit and save yourself from expenses and headaches.