It can be thrilling and satisfying to invest in single-family rental homes. Nevertheless, it’s not as easy as it sounds to become a landlord, and there are a lot of things you should know before renting out your property.
It is crucial for first-time rental property owners to have a fundamental understanding of leasing strategies and the applicable laws governing both the property and its occupants. We have compiled a comprehensive guide outlining the fundamentals in order to assist you in leasing your very first property. You can have a good first experience as a landlord by adhering to these easy rules.
Mastering Renter Screening
Getting as much information as possible about potential tenants is crucial if you want to make sure they are the right fit for your rental home. A rental application that requests the names and birth dates of all intended occupants, including minors, is one way to accomplish this. Obtaining a minimum of three previous rental references and a recent employment history are also vital.
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 find a qualified tenant for your rental property by following these steps and making an informed decision.
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. 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 marketing to and screening prospective tenants. Rental discrimination against tenants on the basis of their race, sex, color, national origin, religion, handicap, or familial status is explicitly prohibited by a number of federal statutes. 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. 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). Landlords who own four or more units in a building are required to provide reasonable accommodations for people with disabilities. 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 guards against employment discrimination against people 40 years of age or older. 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. Landlords are not allowed to treat people differently because of their race, color, national origin, religion, sex, marital status, age, or because they receive government assistance, according to the ECOA.
Studying state and local laws is crucial in addition to federal law. There may be additional protected classes governed by local regulations.
It is crucial to avoid discriminatory language when composing rental advertisements. Saying that you won’t rent to elderly people, families with kids, or people on government assistance is part of this. Assessing candidates fairly on the basis of the data in their application is essential when screening them. One can guarantee the absence of discrimination against prospective tenants by upholding professionalism and employing an impartial screening system.
Legal Obligations
It’s important to remember that a person with a disability does not always mean they are a suitable tenant for 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 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 policy strictly prohibits pets, you may still need to make accommodations for service and emotional support animals. It is crucial to acknowledge that rental pet policies do not apply to service and emotional support animals. Consequently, if a tenant chooses to keep a service animal on the property, no additional rent or fees may be assessed.
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 West Fargo property manager? Real Property Management Ambassadors 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 701-970-2600 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.
