It can be both exciting and lucrative to invest in single-family rental properties. However, becoming a landlord is more difficult than it may appear; prior to leasing your property to tenants, there are numerous details that must be mastered.
Comprehending the fundamentals of leasing strategies and legislation that applies to both the proprietor and the lessees is imperative for a novice rental property proprietor. 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 guarantee 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 find a qualified tenant for your rental property by following these steps and making an informed decision.
Before renting out your property to a rental applicant, make sure the information they submitted is accurate. This objective can be accomplished through the compilation of rental history information by contacting the individuals’ prior 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’s critical to steer clear avoid any form of discrimination, whether deliberate or inadvertent, when recruiting and vetting 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. 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’s crucial to remember that the Federal Housing Administration (FHA) is prohibited from discriminating against individuals with disabilities by law. Landlords are required to provide reasonable accommodations for people with disabilities if they own a building with four or more units. 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 guards against employment discrimination against people 40 years of age or older. Housing discrimination based on age is also prohibited 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 unlawful discrimination practices against tenants on the basis of their political affiliation, national origin, religion, race, color, sex, marital status, age, or welfare status.
State and local laws should also be investigated, in addition to federal legislation. Local laws might establish additional protected classes.
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. Assessing candidates fairly on the basis of the data in their application is essential when screening them. 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.” If a potential tenant satisfies the prerequisites for renting your property, their lack of accommodation should not serve as grounds for denial. With the understanding that they will return the property to its original state upon move-out, the renter will cover the cost and installation of the requested accommodations.
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. 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 aware of every legal requirement and the best practices for renting out real estate. Why not entrust this duty to a Winter Springs 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 Verita. Contact us online today or at 321-972-6823 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.
