It can be thrilling and satisfying to invest in single-family rental homes. But as hard as it may seem, owning a property is not easy, and there are a lot of things you should know before renting out your space.
Comprehending the fundamentals of leasing strategies and legislation that applies to both the proprietor and the lessees is imperative for a novice rental property proprietor. We have compiled a comprehensive guide outlining the fundamentals in order to assist you in leasing your very first property. You can ensure that your first experience as a landlord is enjoyable by adhering to these straightforward 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. 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. Finding out about their rental history can be done by getting in touch with their prior landlords. Thorough research prior to signing the lease can assist you in averting unfavorable surprises in the future, despite the time investment involved.
Ensuring Non-Discriminatory Practices
It’s critical to steer clear avoid any form of discrimination, whether deliberate or inadvertent, when recruiting and vetting prospective tenants. Discrimination against renters on the basis of race, sex, color, national origin, religion, handicap, or familial status is specifically forbidden by a number of federal laws. You must be aware of these laws and continuously comply with them.
– Fair Housing Act (FHA): Ensures that no one is subjected to housing discrimination on the basis of their race, color, national origin, religion, sex, status as a family member, or disability. Including tenant selection, advertising, and the terms and conditions of the tenancy, the FHA is applicable to each stage of the rental procedure.
– Americans with Disabilities Act (ADA): It is important to acknowledge that a regulation in place with the Federal Housing Administration (FHA) prohibits anti-disability discrimination. A landlord is obligated to provide reasonable accommodations for disabled individuals if they own a building consisting of four units or more. Implementing grab bars in restrooms and providing accessible parking spaces are examples of such measures.
– Age Discrimination in Employment Act (ADEA): A federal statute that provides protection against workplace discrimination for individuals aged 40 or older. Age-based discrimination in housing is likewise forbidden by the ADEA.
– Equal Credit Opportunity Act (ECOA): This federal statute guarantees the prevention of discrimination against individuals in all credit transactions, including rental transactions. 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.
It is imperative to investigate state and local laws in addition to federal legislation. Local laws might establish additional protected classes.
It is crucial to avoid discriminatory language when composing 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. You can make sure you’re not discriminating against potential tenants by upholding professionalism and utilizing an impartial screening process.
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 vacate, the lessee shall furnish and install the requested lodging.
Even if your rental policy strictly prohibits pets, you may still need to make accommodations for service and emotional support animals. In addition, if a tenant chooses to keep a service animal on the property, you are not allowed to charge them extra rent or fees. Service and emotional support animals are also excluded from rental pet policies.
It can be difficult to be aware of every legal requirement and the best practices for renting out real estate. Why not entrust this duty to a Norfolk property manager? Real Property Management Complete 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 757-937-2964 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.
