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.
Knowing the fundamentals of leasing tactics and the laws that affect both you and your tenants is crucial for anyone purchasing their first rental property. 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
In order to secure an appropriate tenant for your rental property, it is critical to collect all pertinent information regarding them. 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. It is also imperative to obtain a minimum of three previous rental references and a recent employment history.
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. 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
Avoid any form of discrimination, whether intentional or not, is essential when advertising for and screening potential tenants. Prejudice against renters on the grounds of race, sex, color, national origin, religion, handicap, or familial status is specifically illegal under a number of federal laws currently in effect. These laws must be known to you, and you must always abide by them.
– 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 crucial to acknowledge that a regulation in place with the Federal Housing Administration (FHA) prohibits discriminatory practices against individuals with disabilities. Landlords are required to provide reasonable accommodations for people with disabilities if they own a building with four or more units. Implementing grab bars in restrooms and providing accessible parking spaces are examples of such measures.
– Age Discrimination in Employment Act (ADEA): A federal law that shields people 40 years of age and 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. Local laws might provide for additional protected classes.
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. 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. 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 policy prohibiting pets, you may need to consider allowing service and emotional support animals as one of the accommodations. It is crucial to acknowledge that rental pet policies do not apply to service and emotional support animals. Consequently, if a tenant chooses to keep a service animal on the property, no additional rent or fees may be assessed.
It can be difficult to stay on top of all the laws and best practices related to renting out properties. Why not entrust this duty to a Long Island property manager? Our objective is to assist our rental property owners in finding the most qualified tenants for their properties through transparent and nondiscriminatory screening and leasing procedures at Real Property Management Unlimited. Contact us online today or at 516-875-1600 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.
