by Jessica S. Weisman, Managing Partner of Client Education| Kimball, Tirey & St. John LLP
Many landlords often make the mistake of thinking that they do not need to worry about being up to date when it comes to fair housing law. “I’m an individual landlord” “I run a small operation” “I’m not a big fish” are common misconceptions. Regardless of property/company size, any landlord can find themselves on the wrong end of a fair housing claim and/or lawsuit.
Each April, HUD observes Fair Housing Month, in honor of the 1968 Fair Housing Act that prohibits housing discrimination based on race, color, national origin, religion, sex, disability, and family status.
This year, HUD is encouraging rental applicants and tenants to exercise their rights under the Act.
In addition to the legal protections provided under the Fair Housing Act prohibiting housing discrimination based on race, color, national origin, religion, sex, disability, and family status, approximately 20 states, the District of Columbia, and more than 150 cities, towns and counties across the nation also prohibit discrimination against lesbian, gay, bisexual, and transgender (LGBT) individuals and families.
In 2012, HUD published new regulations to ensure that the Department’s core housing programs are open to all eligible persons, regardless of their sexual orientation or gender identity.
Twelve states and the District of Columbia, as well as several counties and municipalities
protect persons against housing discrimination based on their source of income.
A review of recent prosecutions shows confirms that HUD is making good on its promise to
pursue cases where tenants with disabilities have been denied companion animals, and
families denied housing on occupancy limits. A new ruling also clarifies that, while a
policy may not be discriminatory on its face, a landlord may still be prosecuted if that
policy causes a more subtle, “disparate” impact.
Landlords should take the time to review leasing policies for possible discrimination.
Some common areas to avoid include:
Rental ads that discourage protected tenants from applying;
Steering a protected tenant towards or away from a particular property;
Occupancy limits based on 2-per bedroom have come under scrutiny — avoid turning away
families if the property has a “bonus” room, loft, office or den that could easily be converted into a sleeping area.
Denying companion animals for tenants with disabilities, or applying any pet policies in that situation.
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American Apartment Owners Association | Company Website | Rental property management can be very demanding. Our job is to make this day-to-day property management process smoother. AAOA provides a host of services ranging from tenant screening to landlord rental application forms and contractor directory to apartment financing. |
Pasadena, CA – March 25, 2014
We hope to see everyone back in Pasadena in 2015!
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Compliments of Appfolio.com | by: Aimee Miller
According to a recent report on fair housing trends, there were nearly 30,000 discrimination complaints filed in the United States in 2012, an increase of nearly 5% from 2011. Here are five things you should know to help avoid being the target of one of those complaints.
1. Be Careful How You Advertise
In your advertising, you can focus on amenities, attributes of your property, and location, but not on the type of tenant you want. Saying “great for young couples” can be considered discriminatory towards older renters, as an example. You shouldn’t use words like “safe” or “exclusive” since that implies that you restrict to whom you rent. Use the fair housing logo or include a statement of non-discrimination at the end of each ad.
2. Be Precise in Your Screening
Tenant screening is an area that frequently causes complaints. Have a written policy for the necessary criteria to rent your unit such as employment history/income, credit standards, etc. Outline your application process and include a statement that you adhere to all applicable fair housing laws. Your application shouldn’t include questions about physical disabilities, age, race, or ethnicity. You may, though, include questions about prior evictions, money judgments, or bankruptcy filings. You may also ask why someone is leaving his or her current unit. Keep good records of every applicant and inquiry.
3. Be Consistent with Your Apartment Rules
It’s acceptable to have mandatory apartment rules that are basic and non-discriminatory for all tenants. They should be written and uniformly enforced to all residents. Statements like “children should not be rowdy in the hallways” are unacceptable, but changing the reference to “residents and guests” is fine. Keep detailed records of any violations of the rules – time, date, and type of violation; how you became aware of the infraction and the actions you took to enforce the rule.
4. Be Detailed in Your Eviction Process
Under fair housing laws, tenants can be evicted for legitimate reasons such as non-payment of rent. For other causes be sure there has been a serious violation of the lease or a history of eviction of others for similar actions. Detailed files should contain a record of all complaints by neighbors and what has been done to respond to each. HUD historically has examined the following documentation in these situations:
5. Be Thorough with Employee Training
Document a written policy for employees regarding sexual and other types of harassment. All new employees must undergo training sessions that should include all memos that reference policies on how to comply with fair housing laws and the consequences for violating them. Provide all employees with a written copy of a non-discrimination policy. Have employees sign an agreement that says termination will result from violation of any fair housing law.
Being aware of and diligently following fair housing statutes is the best way to avoid having to defend a claim that could be lodged against you.
AppFolio, Inc. develops Property Management Software that helps businesses improve their workflow so they save time and make more money. Appfolio submits articles & blogs including topics of Resident Retention, Improved Owner Communication, Time Management, and more.
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By: Elizabeth Whited | www.therrd.com
As we all well know, the Fair Housing Act prohibits any type of discrimination from Real Estate Professionals when choosing who to rent their property or unit to in regards to race, gender, sexual orientation, disability, family status or national origin, and in some counties: section 8 voucher status (www.tenantsunion.org). But what about disparate impact?
Disparate impact is the legal theory that people of certain races and ethnicities are disproportionately represented in the criminal justice system. This theory was previously used in regards to employment, but in recent years has moved into the real estate industry as well. The theory states that the use of criminal records for tenant screening purposes has a disparate impact on certain minorities who have been disproportionately represented in the legal system, and who therefore have criminal records that could be used to determine that they should not be rented to. Fair Housing Advocates argue that in effect, while you may be following all Fair Housing Laws, and screening every applicant, you could be inadvertently discriminating against certain minorities (Wikipedia).
The Landlord Times gives a great example: “…a property management company has a policy of charging a set rental amount for the first three residents in a household, plus $100 per month for each additional resident. This policy, although applied equally to all applicants and residents, will have a disproportionately negative effect on families with children, and thus likely violates fair housing laws. Similarly, a policy of denying rental to everyone who has any criminal record may have a disparate impact on certain protected class groups (such as race, national origin, and disability).”
On the other side of that argument are landlords and owners who want to protect their tenants, as well as their staff from those who have committed crimes in the past (be it on a property, or not). Another question that is being debated by certain states is should applicants who have a criminal history be immediately rejected, even if it is not directly related to an on-property offence? This issue also arose in employment screening, and a few states have made amends to only deny an applicant if they can directly relate the crime to the specific job the applicant applied for. They also argue that being a convicted criminal does not put a person into any protected class.
Another law that you could begin to see take hold in other states is the Fair Tenant Screening Act, passed in Washington, which compels landlords to share the reasons behind obtaining certain information required from applicants that is used during the screening process. If a landlord or owner does not disclose this information, then they themselves must pay for the screening fee, even if a third party tenant screening company is used. The owner must also easily identify what criteria for that particular property will fail an applicant. If an adverse action follows a screening report, then the manager or landlord must notify the applicant in writing if it is a direct result of any of the following conclusions:
A few screening companies out there already offer adverse action letters, and lists of criteria needed from applicants that will be used in their screening process. If criminals cause problems on a property, then future landlords and property managers have a right to know. This does not mean however, that they will not be rented to, but sharing this type of information can be beneficial to all parties involved. Any sort of “black list” of who not to rent to posted online, written, or read aloud in any capacity is illegal, because there is no addendum to inform the tenants, evidence, and no appeals on behalf of the tenant.
Do your research, and make sure to find a database that utilizes all of these tools and is Fair Credit Reporting Act compliant for a completely legal way to share information about tenants. To stay up to date on new amendments and additions to the Fair Housing Law, please visit the U.S. Department of Housing and Urban Development website, or see a list of landlord/tenant laws broken down by state.
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About the Author: Elizabeth Whited is the Operations Coordinator at the Rent Rite Directory. She has written educational articles for multifamily magazines and Real Estate websites to help Property Managers and Owners improve their properties, in an effort to reduce crime in their communities. The Rent Rite Directory educates Property Managers and Owners at Crime Watch Meetings, and Crime Free Association Conferences, and works closely with law enforcement nationwide. For more information, visit www.therrd.com.
Elizabeth Whited 1-855-733-2289, ewhited@therrd.com
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