What Every Landlord Must Know About Discrimination

The Fair Housing Act of 1968, as amended, prohibitsprohibit 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 onPutting the political perspective of the landlord aside,
the basis of sexuality or source of income, and thesuch discrimination makes very little business sense,
Americans with Disabilities Act makes it illegal tosince 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 allowSome 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 makelive 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 becan be little rational argument in favor of
common sense, and most people would never thinkdiscriminating against same-sex couples in an
of discriminating against people of different races oraccepting locale.
religions, or on the basis of gender.The Americans with Disabilities Act (ADA) prohibits
However, it is important to note that the FHAdiscrimination against the disabled, and also requires
extends beyond the screening process, and intolandlords to make reasonable accommodations to
advertising as well. This is where many landlords anddisabled 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 classifiedsBut while most landlords are aware of the ADA and
looking for inappropriately worded ads so that theywould never stoop so low as to discriminate against
can pounce on them and threaten a lawsuit. Whilea person in a wheelchair, many are unaware that the
someone must have standing to bring suit, theseADA also protects mentally disabled tenants. A
scoundrels often work in coalitions to ensure that allmental disability could also include recovering alcoholics
of their bases are covered.and drug addicts.
For example, if you own a rental property in aThe downside of this is that these types of people
predominantly Jewish community, its proximity to theare 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 theEveryone deserves a second chance, and many
synagogue, you could be sending the messagerecovering addicts go on to be productive members
gentiles need not apply, even though this wasn't yourof society.
intent.The ones who are unable to recover typically have
And keep in mind that you may not discriminate onother problems, and thus it is vitally important that
the basis of whether a couple is married, whether oryou document additional reasons for rejecting their
not children are to live in the unit, or on the basis ofrental 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 ofare asking for a world of pain - it's the equivalent of
concern, and while it's a good thing that citizens arewearing a giant kick me sign on your back. Instead,
more aware of their rights today, it can be a veryown your properties in corporate, limited partnership,
bad thing for well-meaning landlords who are out ofLLC, or trust form.
step with the times.That way, even if you are the victim of a
State law and local ordinances can extend similardiscrimination 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 Dakotaliens of creditors.