Making profitable and exciting investments in single-family rental homes is possible. But as hard as it may seem, owning a property is not easy, and there are a lot of things you should know before renting out your space.
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. We have prepared an extensive guide covering all the essentials to assist you in leasing your first property. One can ensure a favorable first experience as a landlord by adhering to these straightforward principles.
Mastering Renter Screening
Assembling comprehensive information about the prospective tenant is critical in order to secure the ideal tenant for your rental property. 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 essential to request a recent employment history and a minimum of three rental references from the past.
Additionally, gathering every adult renter’s Social Security number and conducting a background check on them can reveal important details about their personality and financial background. You can find a qualified tenant for your rental property by following these steps and making an informed decision.
Before granting a rental applicant access to your property, double-check the information they have provided. This objective can be accomplished through the compilation of rental history information by contacting the individuals’ prior landlords. It may take some time, but doing extensive research prior to signing the lease can assist you in preventing future unpleasant surprises.
Ensuring Non-Discriminatory Practices
It is essential, when advertising for and screening prospective tenants, to avoid any form of discrimination,, whether deliberate or unintentional. Renters cannot be discriminated against on the basis of their race, sex, color, national origin, religion, handicap, or familial status, as stated by a number of federal laws in force. These laws are something you have to know about and always abide by.
– 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 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): In credit transactions, including rental transactions, this federal law guarantees that no person is subjected to discrimination. 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.
It is imperative to investigate state and local laws in addition to federal legislation. There may be more protected classes in line with local laws.
Avoiding discriminatory language is crucial when writing rental advertisements. This includes specifying that individuals who receive government assistance, seniors, or families with children will not be permitted to rent from you. It is essential to evaluate applicants fairly in the applicant screening process, using the information provided in their application. You can be certain you’re not prejudiced against prospective tenants by upholding professionalism and employing an impartial screening procedure.
Legal Obligations
It is imperative to refrain from presuming that an individual with a disability is inherently unsuitable to be a tenant of your property. Property owners are required to make “reasonable accommodations” for their tenants 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.” Reasonable accommodation should not be used as a basis to reject a prospective tenant who satisfies the eligibility criteria for renting your property. 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.
Even if your rental property has a strict pet policy, one accommodation you might need to think about is allowing service and emotional support animals. 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 recall every law and best practice pertaining to the leasing of rental properties. Why not entrust this duty to a Ft. Lauderdale property manager? Real Property Management Coral 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 954-708-1222 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.
