Fair Housing Laws You Need To Know as a Landlord

The number of fair housing complaints filed in the U.S. has hit a record high for three consecutive years. The National Fair Housing Alliance (NFHA) received 34,150 fair housing complaints in 2023 compared to 33,007 complaints in 2022. So, it’s crucial to familiarize yourself with the Fair Housing Act.

This page covers what you need to know about the fair housing laws as a landlord. Learn more about the prohibited and best practices for your rental business to avoid discrimination and maximize your ROI. 

What Is the Fair Housing Act?

The Fair Housing Act is a federal law enacted as part of the Civil Rights Act of 1968 and enforced by the U.S. Department of Housing and Urban Development (HUD). 

This act generally prohibits discrimination in housing-related activities, such as financing, sales, purchase, and rental of residential properties. The ultimate goal is to provide people, regardless of race, religion, sex, and other protected classes, equal access to housing opportunities. 

But what does this law imply for landlords in the rental industry? 

This act aims to promote fair practices among property owners in their rental business. It covers a wide range of scope, from property advertising and tenant screening to rent collection and eviction process. .

Non-compliance with the Fair Housing Act is a legal violation. This violation results in legal and financial implications, such as mandatory changes to discriminatory practices and hefty fines. So, as a landlord, it is essential to understand and know the laws.

Protected classes under the Fair Housing laws

As far as fair housing laws are concerned, what classes are protected from discriminatory practices? Consider the list of protected classes below:

Image source

• Race and color
• Sex and gender
• Religious belief
• National origin
• Familial status
• Known disabilities
• Others

Murtaza Oklu, Owner of OMO Transfer, recommends that landlords learn the Fair Housing Laws by heart. More importantly, he suggests familiarizing themselves with the protected classes under this act. Fair Housing Laws aren’t just rules—they’re a commitment to fairness. 

Oklu says, “Understanding the protected classes, from race and religion to family dynamics and disabilities, ensures landlords create inclusive spaces where everyone feels welcome. Familiarizing yourself with these protections isn’t optional—it’s essential for property management.”

Key exceptions to Fair Housing laws

The Fair Housing Laws, however, don’t apply to all types of properties, communities, and/or groups. Below are some of the exceptions:

• Small-scale living — owner-occupied homes with fewer than four units
• Faithful exemptions — religious organizations and private clubs
• Golden years housing — communities meant for older people
• Solo ventures — single-family rentals managed by the owner with no agents involved

Conrad Wang, Managing Director at EnableU, emphasizes the value of the Fair Housing Laws in the property rental industry. However, he advises understanding the exceptions to the rules.

Wang shares, “Whether it’s small-scale owner-occupied properties, senior housing, or single-family rentals managed without agents, understanding these nuances helps landlords navigate the rules with clarity and confidence.”

Prohibited and Best Practices Every Landlord Should Know

Understanding the legal aspects of rental property management is crucial. 

As a landlord, you don’t want to violate any legalities and incur possible penalties. Housing discrimination could lead to Fair Housing law violations, which could have legal and financial implications. To protect yourself from housing discriminatory practices, here’s what to avoid:

Prohibited Practice 1. Turning down tenants from protected classes

The Fair Housing laws prohibit property owners from rejecting potential renters due to their classes, even in landlord-friendly states. So, it’s a big no-no for landlords to post ads stating that they only accept a certain race, gender, or national origin.

Best Practice: Welcoming all potential tenants

Prohibited Practice 2. Prejudice in promotion and vetting

The Fair Housing laws are legally against discrimination in property marketing and tenant screening. As a landlord, you cannot advertise that you only accept a particular race, sex, or national origin. Likewise, you cannot become biased in your tenant screening and selection processes.

Best Practice: Create fair advertising and transparent screening 

Jeffrey Zhou, CEO and Founder of Fig Loans, suggests being highly critical in your property listings and transparent in your screening process.

“Be meticulous in how you market your property and handle tenant applications. Transparency and fairness in your listings and screening process uphold the law and foster trust.”

Prohibited Practice 3. Playing bias in the rental decision game

The tenant application process often involves listing verification, property viewing, requirement submission, and final decision. However, fair housing laws prevent landlords from showing unequal treatment during this process. 

Best Practice: Level the playing field for every tenant-applicant

David Speedy, General Manager at Workspace Direct, recommends fair and equal treatment in the application process. “Fairness starts at the application stage. Treat every applicant equally by focusing on qualifications, not personal characteristics. That is to create a level playing field and avoid bias.”

Prohibited Practice 5. Retaliating against tenants who speak up

It’s inevitable for some landlords to encounter stubborn and problematic tenants. However, you should always deal with them in a professional manner and within the bounds of law. For example, if a tenant is dealing with subletting without your permission, talk to them professionally or take legal action.

Best Practice:  Handle assertive tenants with professionalism and legal grace

Take it from David Haskins, CEO at WrongfulDeathLawyer.com. He strongly advises landlords to always be professional and legal when dealing with tenants. “Even when tenants push boundaries, professionalism and legality must guide your actions. Address issues calmly and within the law to maintain trust and fairness.”

Final Words

As a landlord, start by understanding the Fair Housing Laws by heart. More importantly, avoid the above mentioned prohibited practices and execute the best practices for your rental business.

Ready to list your property on the market? RentRedi offers robust property management software to help you manage your rental properties. Join us now for solid property management! Visit RentRedi.com to learn more~