Fair Housing Law

Did you know the federal government spends hundreds of thousands of dollars each year funding programs designed to catch landlords who violate Fair Housing laws? Some of that money is used to hire undercover "testers" who pose as prospective tenants. Their job is to contact landlords, ask questions, schedule showings, and document interactions in an effort to identify possible Fair Housing violations.

If you've never heard of housing testers before, the concept can be a little unsettling. These individuals are not looking for a place to live. Instead, they are gathering information that could later be used as evidence in a Fair Housing complaint.

In addition to funding tester programs, government agencies and advocacy groups spend significant resources encouraging applicants and tenants to file Fair Housing complaints whenever they believe discrimination may have occurred.

The important thing for landlords to understand is that intent to discriminate is not always required. A landlord may have no desire to discriminate and still find themselves facing a Fair Housing complaint because of something they said, wrote, or did during the rental process. Even if a complaint is ultimately dismissed, the cost, stress, and time required to defend yourself can be substantial.

Protect Yourself With Written Policies

One of the best defenses against Fair Housing claims is a written rental policy that establishes objective screening standards before an applicant ever contacts you. Your policy should be provided to every applicant and applied consistently to everyone who applies. At a minimum, your written policy should address:

• Income requirements
• Rental history
• Credit history
• Criminal history
• Occupancy standards

The more objective and measurable your criteria, the better. For example, rather than making subjective decisions based on a person's background, establish clear standards in advance. If criminal history is considered, your policy should specify exactly what types of convictions are disqualifying and for how long. Remember that guidance regarding criminal history has evolved over the years, and landlords should stay informed about current federal, state, and local requirements.

Apply Your Policies Consistently

Having a written policy is only half the battle. The policy must be followed consistently. Every applicant should receive the same information, answer the same questions, and be evaluated using the same standards. Avoid making exceptions, improvising screening criteria, or having casual conversations that could be misunderstood.

You're Responsible for Your Employees Too

Fair Housing compliance is not limited to the property owner. Property managers, leasing agents, maintenance staff, office personnel, and anyone else who interacts with applicants or tenants can create liability for the owner. If an employee engages in discriminatory conduct, makes an inappropriate comment, or treats applicants differently based on a protected characteristic, the owner may be held responsible. Training employees and maintaining clear written procedures are essential parts of managing that risk.

Most Fair Housing complaints are avoidable. Develop clear written screening standards. Use a telephone script to be sure you say essentially the same thing to everyone. Provide them to every applicant. Follow them consistently. Document your decisions. Train anyone who interacts with applicants or tenants.

A professional, business-like rental process not only helps you select better tenants—it may also be your best protection against a costly Fair Housing complaint.