Single-family rental property investment can be both lucrative and exciting. 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.
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 put up a thorough guide covering all the essentials to assist you in leasing your first rental property. You can have a good first experience as a landlord by adhering to these easy rules.
Mastering Renter Screening
Getting as much information as possible about potential tenants is crucial if you want to make sure they are the right fit for your rental home. 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. 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 consenting to a rental applicant’s request to lease your property, verify the information they provide. This can be accomplished through the collection of rental history information by contacting their previous 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
Avoid any form of discrimination, whether intentional or not, is essential when advertising for and screening potential tenants. Rental discrimination on the basis of race, sex, color, national origin, religion, disability, or familial status is explicitly forbidden by a number of US federal statutes. You must be aware of these laws and continuously comply with them.
– Fair Housing Act (FHA): Makes sure that no one is subjected to housing discrimination on the basis of race, color, national origin, religion, sex, family status, or disability. 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. 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. Age-based discrimination in housing is likewise forbidden by the ADEA.
– Equal Credit Opportunity Act (ECOA): A prohibition on discrimination in credit transactions, including rental transactions, is guaranteed by this federal legislation. 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.
It’s crucial to study state and local laws in addition to federal law. There may be additional protected classes governed by local regulations.
It’s imperative to steer clear of discriminatory language when writing rental advertisements. Saying that you won’t rent to elderly people, families with kids, or people on government assistance is part of this. It is essential to evaluate applicants fairly in the applicant screening process, using the information provided in their application. One can guarantee the absence of discrimination against prospective tenants by upholding professionalism and employing an impartial screening system.
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.” Accommodations shouldn’t be a justification for turning away a potential tenant if they fit the requirements to rent 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 your rental policy strictly prohibits pets, you may still need to make accommodations for service and emotional support animals. 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 stay on top of all the laws and best practices related to renting out properties. Why not entrust this duty to a Pompano Beach property manager? Real Property Management Forte 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 954-708-1515 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.
