| The Fair Housing Act of 1968, as amended, prohibits | | | | prohibit discrimination based on source of income. In |
| discrimination on the basis of race, color, religion, | | | | other words, a landlord cannot discriminate against |
| nationality, familial status, age, and gender. | | | | would-be tenants who rely on public assistance. |
| Many state and local laws also forbid discrimination on | | | | Putting the political perspective of the landlord aside, |
| the basis of sexuality or source of income, and the | | | | such discrimination makes very little business sense, |
| Americans with Disabilities Act makes it illegal to | | | | since people on welfare or social security are virtually |
| discriminate against the disabled. | | | | assured of a fixed income. |
| If you harbor any such prejudices and would allow | | | | Some cities make it a crime for a landlord to |
| them to come into play when renting a housing unit, | | | | discriminate against lesbians and gay men. If you are |
| then you're probably not cut out to be a landlord. | | | | uncomfortable renting to same-sex couples and you |
| However, many sincere real estate investors make | | | | live in a community progressive enough to pass |
| honest mistakes that result in discrimination lawsuits. | | | | ordinances protecting their rights, then you are either |
| The best way to avoid them is to be informed. | | | | in the wrong line of work or the wrong town. There |
| The Fair Housing Act (FHA) may appear to be | | | | can be little rational argument in favor of |
| common sense, and most people would never think | | | | discriminating against same-sex couples in an |
| of discriminating against people of different races or | | | | accepting locale. |
| religions, or on the basis of gender. | | | | The Americans with Disabilities Act (ADA) prohibits |
| However, it is important to note that the FHA | | | | discrimination against the disabled, and also requires |
| extends beyond the screening process, and into | | | | landlords to make reasonable accommodations to |
| advertising as well. This is where many landlords and | | | | disabled tenants. Who decides what's reasonable? |
| property managers make fatal mistakes. | | | | Typically, judges, if it comes to that. |
| After all, there are people who scour the classifieds | | | | But while most landlords are aware of the ADA and |
| looking for inappropriately worded ads so that they | | | | would never stoop so low as to discriminate against |
| can pounce on them and threaten a lawsuit. While | | | | a person in a wheelchair, many are unaware that the |
| someone must have standing to bring suit, these | | | | ADA also protects mentally disabled tenants. A |
| scoundrels often work in coalitions to ensure that all | | | | mental disability could also include recovering alcoholics |
| of their bases are covered. | | | | and drug addicts. |
| For example, if you own a rental property in a | | | | The downside of this is that these types of people |
| predominantly Jewish community, its proximity to the | | | | are prone to relapse and if they do, can cause |
| local synagogue could be a major feature. | | | | serious problems for you and other tenants. |
| But if your ad says "within walking distance from the | | | | Everyone deserves a second chance, and many |
| synagogue, you could be sending the message | | | | recovering addicts go on to be productive members |
| gentiles need not apply, even though this wasn't your | | | | of society. |
| intent. | | | | The ones who are unable to recover typically have |
| And keep in mind that you may not discriminate on | | | | other problems, and thus it is vitally important that |
| the basis of whether a couple is married, whether or | | | | you document additional reasons for rejecting their |
| not children are to live in the unit, or on the basis of | | | | rental applications if you decide to do so. |
| age. | | | | If you own rental properties in your own name, you |
| Novice landlords may not be aware of these areas of | | | | are asking for a world of pain - it's the equivalent of |
| concern, and while it's a good thing that citizens are | | | | wearing a giant kick me sign on your back. Instead, |
| more aware of their rights today, it can be a very | | | | own your properties in corporate, limited partnership, |
| bad thing for well-meaning landlords who are out of | | | | LLC, or trust form. |
| step with the times. | | | | That way, even if you are the victim of a |
| State law and local ordinances can extend similar | | | | discrimination suit, or any other type of judgment, |
| protections granted under the FHA to other groups. | | | | your personal assets may be protected against the |
| For example, California, Minnesota, and North Dakota | | | | liens of creditors. |