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 have a fundamental understanding of leasing strategies and the applicable laws governing both the property and its occupants. We have compiled a comprehensive guide outlining the fundamentals in order to assist you in leasing your very first property. You can have a great first experience as a landlord managing a rental property by adhering to these easy rules.
Mastering Renter Screening
Acquiring all the information you need about a potential tenant is crucial to guaranteeing that you choose the right person for your rental property. 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. Additional critical requirements are of 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 reach an informed conclusion and locate a suitable tenant for your rental property by adhering to these steps.
Before granting a rental applicant permission to occupy your property, verify the information they have provided. This can be accomplished through the collection of rental history information by contacting their previous landlords. You can prevent unpleasant surprises later on by doing extensive research before signing the lease, 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 marketing to 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. These laws must be known to you, and you must always abide by 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. This could be doing things like putting grab bars in restrooms or offering accessible parking spaces.
– 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 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 may be additional protected classes governed by local regulations.
It is crucial to avoid discriminatory language when composing rental advertisements. This includes declaring that you will not rent to government assistance recipients, families with children, or elderly people. It’s critical to fairly evaluate applicants during the screening process using the data they submitted in their application. Potential tenants can be safeguarded against discrimination by maintaining an air of professionalism and utilizing an impartial screening system.
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 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.” Accommodations shouldn’t be a justification for turning away a potential tenant if they fit your property’s eligibility requirements. 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.
Despite the presence of a firm policy prohibiting pets, one accommodation that may be necessary is permitting service and emotional support animals within the rental property. A rental pet policy does not apply to service or emotional support animals, and you are not allowed to charge extra for a tenant who chooses to keep a service animal on the premises. These points are crucial to know.
It can be difficult to be aware of all the rules and recommended procedures for renting out real estate. Why not entrust this duty to a Baton Rouge property manager? Our objective is to assist our rental property owners in finding the most qualified tenants for their properties through transparent and nondiscriminatory screening and leasing procedures at Real Property Management Premium. Contact us online today or at 225-570-8739 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.
