It can be both exciting and lucrative to invest in single-family rental properties. 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 put together a thorough guide that covers all the fundamentals 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
In order to secure an appropriate tenant for your rental property, it is critical to collect all pertinent information regarding them. 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 imperative to obtain a minimum of 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 locate a qualified tenant for your rental property by using the procedures listed here to help you make an informed choice.
Before renting out your property to a rental applicant, make sure the information they submitted is accurate. 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 advertising for and screening prospective tenants. Discrimination against renters on the basis of race, sex, color, national origin, religion, handicap, or familial status is specifically forbidden by a number of federal laws. You must be aware of these laws and continuously comply with them.
– 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 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 important to acknowledge that a regulation in place with the Federal Housing Administration (FHA) prohibits anti-disability discrimination. A landlord is obligated to provide reasonable accommodations for disabled individuals if they own a building consisting of four units or more. This can entail putting grab bars in restrooms or offering accessible parking spots.
– Age Discrimination in Employment Act (ADEA): A federal statute that guards against employment discrimination against people 40 years of age or older. 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 prohibited by the ECOA from engaging in unlawful discrimination practices against tenants on the basis of their political affiliation, national origin, religion, race, color, sex, marital status, age, or welfare status.
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.
It’s critical to steer clear of discriminatory language when writing rental ads. This includes specifying that individuals who receive government assistance, seniors, or families with children will not be permitted to rent from you. Assessing candidates fairly on the basis of the data in their application is essential when screening them. You can make sure you’re not discriminating against potential tenants by upholding professionalism and utilizing an impartial screening process.
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.” If a potential tenant satisfies the prerequisites for renting your property, their lack of accommodation should not serve as grounds for denial. 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 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 Detroit property manager? Real Property Management Main assists owners of rental properties in finding the ideal tenants for their properties through transparent, non-discriminatory screening and leasing services. Contact us online today or at 248-852-6204 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.
