Purchasing rental single-family homes can be a thrilling and fulfilling endeavor. 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.
Comprehending the fundamentals of leasing strategies and legislation that applies to both the proprietor and the lessees is imperative for a novice rental property proprietor. We have compiled a comprehensive guide outlining the fundamentals in order to assist you in leasing your very first property. You can ensure a positive first experience as a landlord by adhering to these straightforward principles.
Mastering Renter Screening
Acquiring all the information you need about a potential tenant is crucial to guaranteeing that you choose the right person for your rental property. One way to accomplish this is to request that they complete a rental application that includes the names and birth dates of all intended occupants, including minors. 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 make an informed choice and locate a good tenant for your rental property by following these steps.
Before consenting to a rental applicant’s request to lease your property, verify the information they provide. This objective can be accomplished through the compilation of rental history information by contacting the individuals’ prior landlords. Thorough research prior to signing the lease can assist you in averting unfavorable surprises in the future, despite the time investment involved.
Ensuring Non-Discriminatory Practices
It is imperative to avoid any form of discrimination, whether deliberate or inadvertent, when advertising for and screening prospective tenants. 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 must be known to you, and you must always abide by them.
– 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 significant to remember that discrimination against individuals with disabilities is prohibited by law by the Federal Housing Administration (FHA). A landlord is obligated to provide reasonable accommodations for disabled individuals if they own a building consisting of four units or more. Possible solutions encompass the installation of grab bars in restrooms or the provision of accessible parking spaces.
– Age Discrimination in Employment Act (ADEA): A federal statute that shields people 40 years of age or older from discrimination at work. Housing discrimination based on age is also prohibited by the ADEA.
– Equal Credit Opportunity Act (ECOA): This federal law guarantees that credit transactions, including rental transactions, do not discriminate against any individual. Landlords are forbidden by the ECOA from treating people unfairly on the basis of their race, color, national origin, religion, sex, marital status, age, or because they are recipients of public assistance.
It is imperative to investigate state and local laws in addition to federal legislation. Local laws might establish additional protected classes.
It is crucial to avoid discriminatory language when composing rental advertisements. This includes prohibiting seniors, families with children, and individuals receiving government assistance from renting your property. Assessing candidates fairly on the basis of the data in their application is essential when screening them. Potential tenants can be safeguarded against discrimination by maintaining an air of professionalism and utilizing 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 the requirements to rent 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 policy strictly prohibits pets, you may still need to make accommodations for service and emotional support animals. 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 proficient in every law and leasing practice pertaining to rental properties. Why not entrust this duty to a Portland property manager? Our objective is to assist our rental property owners in finding the most qualified tenants for their properties through transparent and nondiscriminatory screening and leasing procedures at Real Property Management Solutions. Contact us online today or at 503-224-3002 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.
