Fair-Housing Law
Be Aware of Secret "Testers"
Did you know the federal government invests hundreds of thousands of dollars each year in efforts to catch landlords who may, intentionally or accidentally, violate Fair Housing laws?
Click on the image above to watch a brief public service announcement about the “testers” funded by the federal government. These undercover agents pose as rental applicants to identify landlords potentially violating Fair Housing Law—an approach that can feel unsettling!
In addition to funding tester programs, the government also allocates tens of thousands annually to encourage applicants and tenants to file Fair Housing complaints if they believe they have experienced discrimination. While there’s nothing inherently wrong with encouraging reporting, keep in mind that intent is not required to violate the law. Even accidental discrimination can result in a violation.
Avoiding Fair Housing complaints and lawsuits should be a top priority for landlords. Even if you are ultimately found innocent, the financial burden of a legal defense could be overwhelming.
Tips to Avoid Trouble
Develop and Follow a Written Company Policy
Under Fair Housing Law (42 U.S. Code §§ 3601-3619), it’s essential to establish clear, pre-defined, and objective screening criteria for tenant selection. A written policy should outline these guidelines and be given to every rental applicant along with the rental application. Editor’s Note: Check our forms section under New Tenant Forms for a sample rental application with a sample company policy.
At a minimum, your policy should include:
- Income Requirements
- Criminal History
- Rental History
- Credit History
- Maximum Occupancy Standards
Each criterion should be explicit. For example, recent updates have made criminal history a potential protected category, but it’s not an absolute safeguard.
You can choose not to rent to individuals with criminal convictions involving bodily injury or property damage. For example, your policy might state: “No felony convictions involving bodily injury or property damage within the past 7 years, no misdemeanor convictions within the past 2 years, and no rental eligibility for those with sexual offenses.”
Additional Policy Elements
Consider also adding policies on pets, smoking, or other specific conditions, provided these do not conflict with legal standards. Apply these rules equally to all applicants.
Understand and Follow Your Policies Consistently
Everyone involved with tenant interactions must adhere to Fair Housing laws, including property owners, landlords, managers, real estate agents, and their employees. As the property owner, you are legally accountable for any discriminatory actions by your employees, including harassment.
By implementing and consistently following these practices, you can reduce the risk of Fair Housing complaints and ensure a fair and equitable rental process.
