It can be both exciting and lucrative to invest in single-family rental properties. 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 comprehend the fundamentals of leasing tactics as well as the legal framework that affects both them and their tenants. In order to assist you in leasing your initial property, we have compiled an all-encompassing guide that addresses the fundamentals. One can ensure a favorable first experience as a landlord by adhering to these straightforward principles.
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. Asking them to complete a rental application with the names and birth dates of all intended occupants—including minors—is one way to accomplish this. It’s also critical to request at least three previous rental references and a recent employment history.
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 reliable tenant for your rental property and reach an informed conclusion by adhering to these steps.
Before granting a rental applicant permission to occupy your property, verify the information they have provided. Finding out about their rental history can be done by getting in touch with their 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 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. Maintaining awareness of and consistently adhering to these laws is imperative.
– Fair Housing Act (FHA): guarantees that no individual will face housing discrimination due to their race, color, national origin, religion, sex, family status, or disability. The FHA covers all aspects of the rental process, including marketing, choosing a tenant, and tenancy agreements.
– Americans with Disabilities Act (ADA): It is significant to remember that discrimination against individuals with disabilities is prohibited by law by the Federal Housing Administration (FHA). It is your responsibility as a landlord to provide reasonable accommodations for people with disabilities if you own a building with four or more units. This can entail putting grab bars in restrooms or offering accessible parking spots.
– Age Discrimination in Employment Act (ADEA): A federal statute that provides protection against workplace discrimination for individuals aged 40 or older. Discrimination in housing on the grounds of age is also forbidden 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.
In conjunction with federal legislation, state and local regulations warrant thorough investigation. There might be more protected classes in accordance with regional laws.
It is imperative that rental advertisements refrain from using discriminatory language. This includes specifying that individuals who receive government assistance, seniors, or families with children will not be permitted to rent from you. It is imperative to conduct a fair evaluation of candidates throughout the screening process, relying solely on the information they have submitted. One can guarantee the absence of discrimination against prospective tenants by upholding professionalism and employing an impartial screening system.
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 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. With the understanding that they will return the property to its original state upon vacate, the lessee shall furnish and install the requested lodging.
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 Red Bank property manager? In order to assist our rental property owners in finding the best tenants for their properties, Real Property Management Performance provides transparent and anti-discriminatory screening and leasing services. Contact us online today or at 732-289-9337 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.
