Making profitable and exciting investments in single-family rental homes is possible. 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. You can ensure that your first experience as a landlord is enjoyable by adhering to these straightforward rules.
Mastering Renter Screening
In order to secure an appropriate tenant for your rental property, it is critical to collect all pertinent information regarding them. A rental application that requests 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, conducting a background check and collecting the Social Security numbers of all adult renters can yield significant insights regarding their personal lives and financial transactions. You can make an informed choice and locate a good tenant for your rental property by following these steps.
Before renting out your property to a potential tenant, double-check the information they have provided. You can accomplish this by getting information about their rental history by getting in touch with their prior 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. You have to be aware of these laws and follow them all the time.
– Fair Housing Act (FHA): Prohibits housing discrimination on the basis of religion, sex, national origin, race, national origin, or disability; ensures all other protected characteristics are respected. The FHA is applicable to every stage of the rental procedure, encompassing advertising, tenant selection, and tenancy terms and conditions.
– Americans with Disabilities Act (ADA): It is crucial to acknowledge that a regulation in place with the Federal Housing Administration (FHA) prohibits discriminatory practices against individuals with disabilities. Landlords who own four or more units in a building are required to provide reasonable accommodations for people with disabilities. Installing grab bars in restrooms or offering accessible parking spaces are two examples of this.
– Age Discrimination in Employment Act (ADEA): A federal law that shields people 40 years of age and older from discrimination at work. Discrimination in housing on the grounds of age is also forbidden by the ADEA.
– Equal Credit Opportunity Act (ECOA): Rent transactions and other credit-related transactions are protected from discrimination by this federal law. In accordance with the ECOA, landlords are not allowed to treat people differently on the grounds of their age, marital status, race, color, national origin, religion, sex, or ageism.
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 involves a disclaimer that says you won’t rent to government assistance recipients, families with kids, or elderly people. Encouragingly evaluating applicants according to the data in their application is essential when screening them. 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 Fair Housing Act to provide “reasonable accommodations” for their tenants. 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 the potential tenant satisfies the requirements to rent your property, you shouldn’t turn them down because of their accommodations. In exchange for returning the property to its original state when they vacate, the renter will cover the cost of installing and paying for the requested accommodations.
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’s vital to remember that rental pet policies do 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.
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 Ludlow property manager? Our goal at Real Property Management Bay State West is to assist our rental property owners in finding the best tenants for their properties through transparent, non-discriminatory screening and leasing processes. Contact us online today or at 413-514-0050 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.
