It can be thrilling and satisfying to invest in single-family rental homes. 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.
It is crucial for first-time rental property owners to comprehend the fundamentals of leasing tactics as well as the legal framework that affects both them and their tenants. 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 reliable tenant for your rental property and reach an informed conclusion by adhering to these steps.
Before granting a rental applicant access to your property, double-check the information they have provided. This can be accomplished by getting information about their rental history from their 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 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 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. Implementing grab bars in restrooms and providing accessible parking spaces are examples of such measures.
– Age Discrimination in Employment Act (ADEA): A federal statute that provides protection against workplace discrimination for individuals aged 40 or older. Age-based housing discrimination is also prohibited 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. 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.
It is imperative to investigate state and local laws in addition to federal legislation. There might be more protected classes in accordance with regional 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’s critical to fairly evaluate applicants during the screening process using the data they submitted 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. The requested accommodation will be furnished and installed at the tenant’s expense, with the stipulation that the tenant will return the premises in their original state upon vacate.
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 is essential to note that service and emotional support animals are exempt from rental pet policies; if a tenant decides to keep a service animal on the property, you cannot charge additional rent or fees.
It can be difficult to be proficient in every law and leasing practice pertaining to rental properties. Why not entrust this duty to a Crown Point property manager? Real Property Management NW Indiana 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 219-525-1277 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.
