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. You can have a great first experience as a landlordmanaging a rental property by adhering to these easy rules.
Mastering Renter Screening
It’s crucial to acquire all the information you need about potential tenants in order to make sure you choose the right ones 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, conducting a background check and collecting the Social Security numbers of all adult renters can yield significant insights regarding their personal lives and financial transactions. You can find a reliable tenant for your rental property and reach an informed conclusion by adhering to these steps.
Before renting out your property to a potential tenant, 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’s critical to steer clear avoid any form of discrimination, whether deliberate or inadvertent, when recruiting and vetting 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. Maintaining awareness of and consistently adhering to these laws is imperative.
– 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 is crucial to acknowledge that a regulation in place with the Federal Housing Administration (FHA) prohibits discriminatory practices against individuals with disabilities. Landlords who own four or more units in a building are required to provide reasonable accommodations for people with disabilities. This can entail putting grab bars in restrooms or offering accessible parking spots.
– Age Discrimination in Employment Act (ADEA): An act of Congress safeguarding against workplace discrimination individuals aged 40 and older. Discrimination in housing on the grounds of age is also forbidden 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 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. You can make sure you’re not taking advantage of prospective tenants by remaining professional and utilizing an impartial screening process.
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 Fair Housing Act to provide “reasonable accommodations” for their tenants. 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. 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. 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 every legal requirement and the best practices for renting out real estate. Why not entrust this duty to a Indianapolis property manager? In order to assist our rental property owners in finding the best tenants for their properties, Real Property Management Faith provides transparent and anti-discriminatory screening and leasing services. Contact us online today or at 317-219-4363 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.
