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What Every Landlord Must Know About Discrimination

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




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