Single-family rental property investment can be both lucrative and exciting. 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.
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. 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
In order to secure an appropriate tenant for your rental property, it is critical to collect all pertinent information regarding them. 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 is also imperative to obtain a minimum of three previous rental references and a recent employment history.
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 reach an informed conclusion and locate a suitable tenant for your rental property by adhering to these steps.
Before renting out your property to a rental applicant, make sure the information they submitted is accurate. This can be accomplished through the collection of rental history information by contacting their previous landlords. Doing extensive research before signing the lease can help you avoid unpleasant surprises later on, 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. These laws are something you have to know about and always abide by.
– 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. All aspects of the rental process are covered by the FHA, including advertising, choosing a tenant, and tenancy agreements.
– 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. Installing grab bars in restrooms or offering accessible parking spaces are two examples of this.
– Age Discrimination in Employment Act (ADEA): A federal statute that provides protection against workplace discrimination for individuals aged 40 or older. Age-based housing discrimination is likewise 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 discriminatory practices against tenants on the basis of their public assistance status, race, color, national origin, religion, sex, marital status, or age.
In conjunction with federal legislation, state and local regulations warrant thorough investigation. There may be more protected classes in line with local 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. You can make sure you’re not discriminating against potential tenants by upholding professionalism 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 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.” If a potential tenant satisfies the prerequisites for renting your property, their lack of accommodation should not serve as grounds for denial. 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 property has a strict policy prohibiting pets, you may need to consider allowing service and emotional support animals as one of the accommodations. It is essential to note that service and emotional support animals are exempt from rental pet policies; if a tenant decides to keep a service animal on the property, you cannot charge additional rent or fees.
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 Atlanta property manager? Real Property Management Piedmont provides leasing and screening services that are transparent and nondiscriminatory, assisting our rental property owners in finding the most qualified tenants for their properties. Contact us online today or at 404-480-4820 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.
