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 compiled a comprehensive guide outlining the fundamentals in order to assist you in leasing your very first property. You can have a great first experience as a landlord managing a rental property by adhering to these easy rules.
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. A rental application containing the names and dates of birth of all intended occupants, including minors, can be completed by them as a means of achieving this. Obtaining a minimum of three previous rental references and a recent employment history are also vital.
In addition, background checks and the collection of Social Security numbers of all adult renters can yield significant information regarding their personal lives and financial investments. 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. You can accomplish this by getting information about their rental history by getting in touch with 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 marketing to 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 have to be aware of these laws and follow them all the time.
– 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. All aspects of the rental process are covered by the FHA, including advertising, 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). Landlords of structures containing four or more units are obligated to provide reasonable accommodations for tenants who are disabled. 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 shields people 40 years of age or older from discrimination at work. Age-based housing discrimination is also prohibited by the ADEA.
– Equal Credit Opportunity Act (ECOA): Rent transactions and other credit-related transactions are protected from discrimination by this federal law. 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 is crucial to avoid discriminatory language when composing rental advertisements. This includes declaring that you will not rent to government assistance recipients, families with children, or elderly people. It is essential to evaluate applicants fairly in the applicant screening process, using the information provided in their application. Potential tenants can be safeguarded against discrimination by maintaining an air of professionalism and utilizing 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. Pupils are entitled to “reasonable accommodations” from their landlords in accordance with 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. 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 property has a strict pet policy, one accommodation you might need to think about is allowing service and emotional support animals. In addition, if a tenant chooses to keep a service animal on the property, you are not allowed to charge them extra rent or fees. Service and emotional support animals are also excluded from rental pet policies.
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 Austin property manager? Our goal at Real Property Management Capital City is to assist our rental property owners in finding the best tenants for their properties through transparent, non-discriminatory screening and leasing processes. Contact us online today or at 512-572-6799 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.
