It can be both exciting and lucrative to invest in single-family rental properties. But as difficult as it may seem, owning a property is a serious business, 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. One can ensure a favorable 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. It is also imperative to obtain a minimum of three previous rental references and a recent employment history.
Additionally, gathering every adult renter’s Social Security number and conducting a background check on them can reveal important details about their personality and financial background. You can reach an informed conclusion and locate a suitable tenant for your rental property by adhering to these steps.
Before consenting to a rental applicant’s request to lease your property, verify the information they provide. This can be accomplished by getting information about their rental history from their prior landlords. It may take some time, but doing extensive research prior to signing the lease can assist you in preventing future unpleasant surprises.
Ensuring Non-Discriminatory Practices
It is essential, when advertising for and screening prospective tenants, to avoid any form of discrimination,, whether deliberate or unintentional. Prejudice against renters on the grounds of race, sex, color, national origin, religion, handicap, or familial status is specifically illegal under a number of federal laws currently in effect. 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. The terms and conditions of the tenancy, tenant selection, and advertising are all subject to the FHA’s regulations.
– Americans with Disabilities Act (ADA): Remember that there is a law against discrimination against individuals with disabilities enforced by the Federal Housing Administration (FHA). Landlords of structures containing four or more units are obligated to provide reasonable accommodations for tenants who are disabled. 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. Housing discrimination based on age is also prohibited 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 prohibited by the ECOA from engaging in unlawful discrimination practices against tenants on the basis of their political affiliation, national origin, religion, race, color, sex, marital status, age, or welfare status.
It’s crucial to study state and local laws in addition to federal law. There may be more protected classes in line with local laws.
Avoiding discriminatory language is crucial when writing rental advertisements. This includes specifying that individuals who receive government assistance, seniors, or families with children will not be permitted to rent from you. It is essential to evaluate applicants fairly in the applicant screening process, using the information provided in their application. You can make sure you’re not taking advantage of prospective tenants by remaining professional and utilizing an impartial screening process.
Legal Obligations
It’s critical to refrain from assuming that a person with a disability isn’t a suitable fit to rent your property. Property owners are required to make “reasonable accommodations” for their tenants 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 the requirements to rent your property. The requested accommodation will be furnished and installed at the tenant’s expense, with the stipulation that the tenant will return the premises in their original state upon vacate.
Even if your rental property has a strict pet policy, one accommodation you might need to think about is allowing 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 recall every law and best practice pertaining to the leasing of rental properties. Why not entrust this duty to a Saint Peters property manager? Our goal at Real Property Management Endeavor 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 636-244-5959 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.
