Most people don’t imagine they’d ever discriminate against someone intentionally.
When it comes to renting out homes, however, it’s very easy to violate a fair housing law. You can use the wrong language in your marketing materials, making it sound like you prefer one type of tenant over another. If you don’t hold every applicant to the same consistent standards, it could become a fair housing issue.
Owning rental property in Palm Desert means complying with a long list of state and federal laws. Fair housing laws are some of the most complex and important laws that will impact the way you lease, manage, and operate your rental properties.
Understanding and following these laws is more than just a legal and ethical requirement; it’s also an important part of contributing to a diverse and inclusive community within your rental properties.
Fair housing laws are designed to prevent discrimination against tenants or potential tenants on the basis of certain protected classes. These laws ensure that all individuals have equal access to housing opportunities and are not unfairly denied a place to live.
We get a lot of questions about these laws and what they mean to you and your properties. So, we thought we’d provide a brief overview that will help you stay on the right side of the law when we’re talking about fair housing and your Palm Desert rental property.
The Foundations of Fair Housing in California
California's fair housing laws, which are found in the Fair Employment and Housing Act (FEHA), provide broader protections than the federal Fair Housing Act (FHA). This does not come as any surprise to real estate investors and property owners who have been renting out homes in the state for years; our laws are often stricter than most federal laws.
To comply with federal and state fair housing laws and provide an environment of fairness and equity in your rental properties, you need to know how the government's view discrimination. This is especially relevant in the way you advertise your property, screen your tenants, and make modifications to your investments.
Federal and State Protected Classes
Protected classes is a term that describes reasons you may not discriminate against an applicant or a tenant. You can be selective when it comes to income levels, credit scores, and eviction history. However, you cannot make a decision about approving a tenant based on these protected classes.
While the Federal law lists seven protected classes—race, color, national origin, religion, sex, familial status, and disability—California's FEHA goes further. It includes all of these federal protected classes, plus:
- Marital status
- Pregnancy
- Status as a victim of domestic violence or stalking
- Political affiliation
- Age
- Sexual orientation
- Gender identity and gender expression
- Medical condition
- Genetic information
- Military or veteran status
- Source of income
Landlords and rental property managers must be cautious not to discriminate, consciously or unconsciously, against individuals belonging to these classes when choosing tenants, setting rental terms, granting privileges, or applying services and rules. Establish an objective and consistent process and put all of your rental criteria in writing so that tenants know what you’re looking for before they even apply.
Understanding Fair Housing Restrictions
When you’re renting out a home in Palm Desert, it’s important to know that you are restricted from:
- Refusing to rent or sell housing
- Setting different terms, conditions, or privileges for sale or rental of a dwelling
- Providing different housing services or facilities
- Falsely denying that housing is available for inspection, sale, or rental
- Persuading owners to sell or rent (blockbusting) for profit, due to an influx of protected class members into a neighborhood
Fair housing laws apply to landlords, property managers, real estate investors, mortgage brokers, lenders, real estate agents, insurance agents, and anyone dealing with housing and deciding how consumers buy, rent, or sell that housing.
Fair Housing in Palm Desert and Advertising
The language used in rental property advertisements should never indicate preference, limitation, or discrimination based on any protected class. Phrases such as "great for singles" or "suitable for a mature couple" could be considered discriminatory and should be avoided. Instead, focus on ways in which a property is attractive to everyone. Talk about its features, such as large bedrooms, updated kitchens, or fenced yards. Don’t discuss the type of tenant who might appreciate a home. It separates your tenant pool and could violate fair housing laws.
Reasonable Accommodations and Modifications
Landlords must allow and may be required to make reasonable accommodations for individuals with disabilities. This includes modifications to existing premises, as long as it does not create undue financial and administrative burdens.
Disability has received a lot of attention within fair housing circles and rental homes over the last decade. As service animals and companion animals become more popular, landlords have struggled to navigate how to delineate pets from emotional support animals. Make sure you know the difference, or you can find yourself facing a hefty fine.
Retaliation and Fair Housing
No one likes to deal with a fair housing claim or a discrimination complaint. If this happens to you, it’s incredibly important that you remain professional. Do not retaliate. Do not confront the tenant or the party who has brought the complaint or requested an investigation.
Tips to Staying Compliant
To stay compliant with fair housing laws in Palm Desert and throughout California, consider the following:
- Educate yourself and your employees regularly on fair housing laws.
- Develop non-discriminatory screening processes for tenants.
- Keep up-to-date records of all tenant interactions and applications.
- Consult with a fair housing attorney, if needed, to ensure all practices are law-abiding.
By understanding and respecting the federal and state fair housing laws, landlords can not only avoid legal complications but also contribute positively to the communities they serve.
We know that it can be tricky to navigate the wide range of laws that come with renting out a property, and we’d be happy to help you stay up to date on what’s required. Fair housing is important to us, and we’re always being trained on the latest best practices and legal interpretations. For help or clarity, please contact us at Xepco Properties.
