Making profitable and exciting investments in single-family rental homes is possible. But as difficult as it may seem, owning a property is a serious business, and there are a lot of things you should know before renting out your space.
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 put up a thorough guide covering all the essentials to assist you in leasing your first rental property. One can ensure a favorable first experience as a landlordby 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. 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.
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 reach an informed conclusion and locate a suitable tenant for your rental property by adhering to these steps.
Before consenting to a rental applicant’s request to lease your property, verify the information they provide. This can be accomplished through the collection of rental history information by contacting their previous 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. Rental discrimination on the basis of race, sex, color, national origin, religion, disability, or familial status is explicitly forbidden by a number of US federal statutes. These laws must be known to you, and you must always abide by them.
– Fair Housing Act (FHA): Guarantees that individuals are not subjected to housing discrimination on the basis of their disability, race, color, national origin, religion, sex, or familial status. The terms and conditions of the tenancy, tenant selection, and advertising are all subject to the FHA’s regulations.
– Americans with Disabilities Act (ADA): It’s crucial to remember that the Federal Housing Administration (FHA) is prohibited from discriminating against individuals with disabilities by law. Landlords are required to provide reasonable accommodations for people with disabilities if they own a building with four or more units. This could be doing things like putting grab bars in restrooms or offering accessible parking spaces.
– Age Discrimination in Employment Act (ADEA): A federal law that shields people 40 years of age and older from discrimination at work. Housing discrimination based on age is also prohibited by the ADEA.
– Equal Credit Opportunity Act (ECOA): A prohibition on discrimination in credit transactions, including rental transactions, is guaranteed by this federal legislation. 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’s crucial to study state and local laws in addition to federal law. There may be additional protected classes governed by local regulations.
It’s imperative to steer clear of discriminatory language 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. Encouragingly evaluating applicants according to the data in their application is essential when screening them. You can be certain you’re not prejudiced against prospective tenants by upholding professionalism and employing an impartial screening procedure.
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 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.” Accommodations shouldn’t be a justification for turning away a potential tenant if they fit the requirements to rent your property. Renter agrees to cover the cost of requested accommodations and to install them, with the understanding that they will return the property to its pre-move-out state.
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 Durham 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 Trustworthy. Contact us online today or at 984-666-0912 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.
