Fair Housing compliance when screening tenants is so important on many different levels – legal, ethical, and business.
However, it is not difficult to avoid problem tenants before the lease is signed and still be fully compliant with Fair Housing regulations.
It is vital to set and clearly communicate your rental criteria and building standards upfront when screening applicants. If you do get phone inquiries, make sure that you provide each inquirer the exact same information and keep any conversations strictly to the property itself.
Most importantly, the residency requirements must be prominently displayed at the beginning of your application.
Unqualified applicants will typically screen themselves out of the application process if they don’t qualify for your residency requirements and are required to pay an application fee.
Fair Housing compliant standards and criteria can include
- Rent to income ratio
- Prior evictions
- Bill payment history
- Criminal history
(Please note that state and local fair housing laws can add other protected classes or have regulations that vary from federal laws, so check with your state and municipal housing authorities to make sure you are compliant where your rental properties are located.)
Finally, keep good records of each applicant or inquiry in case you do need to provide documentation if a complaint arisies.
This post is for guidance purposes only and is not intended as legal advice. If you have any questions regarding fair housing laws, please consult an attorney or the proper regulatory agency.