Fair Housing Laws You Need to Know as a Landlord

Fair Housing Laws were established by the Fair Housing Act of 1968 to prohibit discrimination based on race, color, religion, sex, national origin, familial status, or disability. As a landlord, it’s your responsibility to ensure that all decisions related to how much you charge for rent , setting terms or evicting tenants are made without bias. Violations can result in severe fines and legal action. Additionally, local and state laws may offer more protections, so it’s important to stay informed about regulations specific to your area.

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What Is the Fair Housing Act?

Enforced by the U.S. Department of Housing and Urban Development (HUD), the primary purpose of the Fair Housing Act is to provide equal access to housing opportunities by prohibiting discriminatory practices in the sale, rental, and financing of homes. Violations of the Act can lead to severe penalties, including fines and mandatory changes to discriminatory practices.

This law covers a wide range of activities related to housing, including advertising, tenant screening , mortgage lending and eviction processes. For example, landlords cannot refuse to rent to someone based on their race. Similarly, the Act prohibits discriminatory terms or conditions in housing transactions, such as charging higher rent or requiring larger security deposits for different groups of people. The law also mandates that housing providers make reasonable accommodations for tenants with disabilities.

Fair Housing Laws Every Landlord Should Know

Fair Housing laws are designed to ensure that all individuals have equal access to housing opportunities without facing bias or prejudice from landlords or property managers. One of the key provisions of the Fair Housing Act is the prohibition against discriminatory practices in renting, selling, or financing mortgages .

For example, landlords cannot refuse to rent to someone with a protected status, nor can they impose different terms or conditions on their lease. Additionally, the Act makes it illegal to advertise rental properties in a way that suggests a preference or limitation based on these protected characteristics. It also prohibits making misleading statements about availability, such as claiming a vacant unit is unavailable.

Familial status and disability protections are also core components of Fair Housing laws. Familial status refers to the presence of children under 18 in a household, and landlords cannot deny housing to families with children or impose restrictions like banning children from certain areas of a property. However, this does not prohibit landlords who want to run a background check on tenants from doing so.

For individuals with disabilities, landlords are required to make reasonable accommodations to ensure these tenants can enjoy their homes fully. This could include allowing a service animal in a building that typically prohibits pets or making modifications to a unit to improve accessibility such as lowered countertops or ramps. Landlords can ask tenants to help cover these costs, but can't charge tenants for them.

Landlords do have leeway to refuse requests if they can prove it will be an undue financial burden or hurt their ability to rent to future tenants. Landlords may also be able to negotiate terms requiring the tenant to restore the property to its original condition when they move out. A real estate attorney can be a valuable resource for landlords navigating these types of discussions.

Fair Housing Act Exemptions

While these exemptions exist, it’s essential for landlords and property owners to be cautious and informed. Misinterpreting or misapplying these exemptions can lead to violations of the Fair Housing Act, resulting in legal and financial consequences. State and local laws may also impact these exemptions.

• Owner-occupied buildings with four units or less: Also known as the “Mrs. Murphy Exemption,” this allows landlords who live in a property with four or fewer rental units to choose tenants without adhering to the Fair Housing Act's requirements. This exemption is based on the idea that small landlords should have more control over their living environment.
• Single-family homes rented without a broker: If a property owner owns three or fewer single-family homes and rents them without using a broker or advertising discriminatory preferences, they are exempt from the Fair Housing Act. This exemption acknowledges that individuals renting their own properties may not have the same resources as larger, commercial landlords.
• Religious organizations and private clubs: Religious organizations can limit the sale or rental of their properties to individuals of the same religion, as long as they don't discriminate based on race, color, or national origin. Similarly, private clubs that are not open to the public can offer housing to their members without falling under the Fair Housing Act's rules.
• Housing for older persons: Certain communities designed for older adults may be exempt if they meet specific criteria, such as having all residents aged 62 or older or if at least 80% of the units are occupied by someone 55 or older. This exemption allows for age-restricted housing to serve the needs of older populations.

Bottom Line

The Fair Housing Act is a law that prevents discrimination in the sale, rental and financing of homes. It provides equal access to housing opportunities regardless of race, color, religion, sex, national origin, disability, or familial status. Landlords must comply with the Fair Housing Act to provide equal housing opportunities and avoid legal penalties for discriminatory practices.

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