Single-family rental property investment can be both lucrative and exciting. However, as opposed to appearances, becoming a landlord is not as simple as it may appear, and there are numerous details that must be possessed prior to leasing a property to tenants.
It is crucial for first-time rental property owners to comprehend the fundamentals of leasing tactics as well as the legal framework that affects both them and their tenants. We have put together a thorough guide that covers all the fundamentals to assist you in leasing your 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. It is also essential to request a recent employment history and a minimum of three rental references from the past.
In addition, gathering the Social Security numbers of all adult tenants and conducting background checks on them can yield important information about their financial and personal histories. You can find a reliable tenant for your rental property and reach an informed conclusion by adhering to these steps.
Before renting out your property to a rental applicant, make sure the information they submitted is accurate. This can be accomplished through the collection of rental history information by contacting their previous 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
It is imperative to avoid any form of discrimination, whether deliberate or inadvertent, when advertising for and screening 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): guarantees that no individual will face housing discrimination due to their race, color, national origin, religion, sex, family status, or disability. All aspects of the rental process are covered by the FHA, including advertising, choosing a tenant, and tenancy agreements.
– 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. 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 shields people 40 years of age or older from discrimination at work. Age-based housing discrimination is likewise forbidden by the ADEA.
– Equal Credit Opportunity Act (ECOA): This federal law guarantees that credit transactions, including rental transactions, do not discriminate against any individual. Landlords are prohibited by the ECOA from engaging in discriminatory practices against tenants on the basis of their public assistance status, race, color, national origin, religion, sex, marital status, or age.
In conjunction with federal legislation, state and local regulations warrant thorough investigation. There might be more protected classes in accordance with regional laws.
It’s critical to steer clear of discriminatory language when writing rental ads. This involves a disclaimer that says you won’t rent to government assistance recipients, families with kids, or elderly people. It is imperative to conduct a fair evaluation of candidates throughout the screening process, relying solely on the information they have submitted. You can make sure you’re not discriminating against potential tenants by upholding professionalism and utilizing an impartial screening process.
Legal Obligations
It is imperative to refrain from presuming that an individual with a disability is inherently unsuitable to be a tenant of your property. Property owners are required to provide their tenants with “reasonable accommodations” under the Federal Fair Housing Act. 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. Renter agrees to cover the cost of requested accommodations and to install them, with the understanding that they will return the property to its pre-move-out state.
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 be proficient in every law and leasing practice pertaining to rental properties. Why not entrust this duty to a Stuart property manager? Real Property Management Sailfish Coast 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 772-242-9094 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.
