Purchasing rental single-family homes can be a thrilling and fulfilling endeavor. 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.
Having a basic understanding of leasing strategies and the laws that affect both you and your tenants is crucial for first-time rental property owners. We have prepared an extensive guide covering all the essentials to assist you in leasing your first property. You can ensure a positive first experience as a landlord by adhering to these straightforward principles.
Mastering Renter Screening
It’s crucial to acquire all the information you need about potential tenants in order to make sure you choose the right ones for your rental property. One way to accomplish this is to request that they complete a rental application that includes the names and birth dates of all intended occupants, including minors. Additional critical requirements are of a recent employment history and a minimum of three rental references from the past.
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 qualified tenant for your rental property by following these steps and making an informed decision.
Before granting a rental applicant access to your property, double-check the information they have provided. This can be accomplished through the collection of rental history information by contacting their previous landlords. Despite the potential time investment, making sure you do your homework before signing the lease will help you stay out of trouble later on.
Ensuring Non-Discriminatory Practices
It is imperative to avoid any form of discrimination, whether deliberate or inadvertent, when advertising for and screening prospective tenants. Rental discrimination against tenants on the basis of their race, sex, color, national origin, religion, handicap, or familial status is explicitly prohibited by a number of federal statutes. You have to be aware of these laws and follow them all the time.
– Fair Housing Act (FHA): Guarantees that individuals are not subjected to housing discrimination on the basis of their disability, race, color, national origin, religion, sex, or familial status. 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): Remember that there is a law against discrimination against individuals with disabilities enforced by the Federal Housing Administration (FHA). A landlord is obligated to provide reasonable accommodations for disabled individuals if they own a building consisting of four units or more. Possible solutions encompass the installation of grab bars in restrooms or the provision of accessible parking spaces.
– Age Discrimination in Employment Act (ADEA): An act of Congress safeguarding against workplace discrimination individuals aged 40 and older. Housing discrimination based on age is also prohibited by the ADEA.
– Equal Credit Opportunity Act (ECOA): In credit transactions, including rental transactions, this federal law guarantees that no person is subjected to discrimination. Landlords are forbidden by the ECOA from treating people unfairly on the basis of their race, color, national origin, religion, sex, marital status, age, or because they are recipients of public assistance.
It is imperative to investigate state and local laws in addition to federal legislation. There may be more protected classes in line with local laws.
Avoiding discriminatory language is crucial when writing rental advertisements. This includes prohibiting seniors, families with children, and individuals receiving government assistance from renting your property. Encouragingly evaluating applicants according to the data in their application is essential when screening them. You can make sure you’re not taking advantage of prospective tenants by remaining professional and utilizing an impartial screening process.
Legal Obligations
Pretending that an individual with a disability is inherently unsuitable to rent your property is an extremely important error that must be avoided. 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.” Reasonable accommodation should not be used as a basis to reject a prospective tenant who satisfies the eligibility criteria for renting your property. 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 you have a strict policy against pets, you may still need to make accommodations for service and emotional support animals in your rental property. 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 proficient in every law and leasing practice pertaining to rental properties. Why not entrust this duty to a Auburn property manager? Our goal at Real Property Management Excelled 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 253-275-5999 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.
