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As a landlord, you may have heard about the Housing Choice Voucher (HCV) program, also known as Section 8. Administered by the US Department of Housing and Urban Development (HUD), this program provides rental assistance to low-income families, the elderly, and disabled persons.
While it’s easy to understand the benefits for renters, there are advantages for landlords as well. This article explains how Section 8 works, its benefits for landlords, program requirements, and more.
What Are Housing Choice Vouchers?
The Housing Choice Voucher program lets eligible renters find a unit in the private rental market and covers a portion of the rent cost through a voucher. The amount of rent the voucher covers is based on the income and size of the renter’s family and is paid directly to the landlord by local public housing authorities (PHAs).
Housing Choice Voucher Program Landlord Responsibilities
As a Housing Choice Voucher program landlord, you must provide decent, safe, and sanitary housing to your HCV renters. Your dwelling — whether a single-family home, a townhouse, or an apartment — must pass the program’s quality standards for as long as you receive housing assistance payments. You should also adhere to local landlord-tenant laws, follow Fair Housing laws, and provide any services agreed to in the lease agreement signed with the renter.
If you want to ensure your lease complies with local and federal mandates, you can use an Avail lawyer-reviewed lease template that’s state-specific and customizable with Unlimited Plus. Our templates include all the disclosures and attachments required by local ordinances. You can collect online signatures for free and access the lease through your landlord account.
Learn more about Avail lease agreement and amendment templates.
What Landlords Should Know About Housing Choice Vouchers
There are several misconceptions surrounding Housing Choice Vouchers, but the program has several advantages for landlords. Here are some examples of the benefits that HCV landlords can experience.
- Rental income is timely and dependable: If you participate in the HCV program, you’ll receive timely and dependable housing assistance payments each month paid directly to you through the local PHA. Additionally, the assistance may alleviate challenges that would cause late or incomplete payments from your renter.
- You’ll receive your full rent amount: You can charge the same amount for rent as you would a non-HCV renter. If the amount exceeds HUD’s Fair Market Rent, the renter is responsible for the difference between the voucher and the full rent price.
- HCV renters tend to be long-term, stable renters: HCV renters tend to stay in units for seven to eight years — about three times longer than the average renters.
- You can request rent increases: At the end of the lease period, you may propose a rent increase. Simply submit a written notice to the PHA for verification.
- You’ll receive regular inspections: Routine inspections let you stay on top of the condition of your property, and you’ll be able to identify maintenance needs that may have otherwise gone unnoticed.
How to Get Started as an HCV Landlord
To become a Section 8 landlord, here are five steps that must be completed.
1. Contact Your Local PHA
Before renting to voucher holders, you must first contact your local PHA. The PHA administers the Section 8 program locally, will provide you with the necessary resources for participation, and will distribute payments to you each month.
2. Market the Unit
The next step is to market your unit by creating a rental listing. Before sharing to a rental listing site, ensure your listing indicates that you accept applications from Section 8 tenants. In addition to the sites and platforms your local PHA may recommend, you can use a rental listing site like Avail to post your listing across several popular rental sites.
Your listing should include the rent price that you plan to charge. As a Section 8 landlord, you can charge your full rent price as long as the PHA approves it. To get a sense of rent price trends in your area based on similar units, you can refer to local rent comparables. Or, for a more detailed breakdown, an Avail Rent Analysis report compares 10 similar properties and even includes rental benchmarks for Section 8 units.
3. Select a Tenant and Request Approval
Once you’re ready to accept HCV renters, approve an applicant based on your own tenant screening criteria. It’s important to use the same screening process for all prospective renters, regardless of HCV status, to avoid housing discrimination and legal repercussions.
After you’ve made your choice, you’ll need to complete a Request for Tenancy Approval form. This document will ask for the property’s details, such as the address, type of unit, and the proposed rent and security deposit amounts. The PHA will review the information to verify that the rent cost is reasonable compared to similar units in the market.
4. Pass the Housing Quality Standards Inspection
Next, you’ll need to set up a time for an inspector to complete a housing quality standards (HQS) inspection. 13 HQS performance requirements must be met to pass the inspection and be considered an HCV residence. They are:
- Sanitary facilities
- Water supply
- Food preparation and refuse disposal
- Lead-based paint risk assessment
- Space and security
- Access
- Thermal environment
- Site and neighborhood
- Illumination and electricity
- Sanitary conditions
- Structure and materials
- Smoke detectors
- Interior air quality
Remember that your units with Section 8 renters must meet the minimum standards in these categories at the start of the tenancy and throughout the duration thereof.
5. Sign Lease and Housing Assistance Payments Contract
After you’ve passed the HQS inspection, you and your tenant can sign the lease and submit it to your local PHA. You’ll receive a housing assistance payments (HAP) contract to sign, which will let you receive monthly timely and dependable payments from the PHA and the remainder of the rent payment from your renter.
Learn More About Landlording With Avail
With programs like HCV available for landlord participation, it’s essential to understand how it works and how it can help your rental business. Once approved to become a Section 8 landlord, you can help provide affordable housing to those who need it.
Visit the Avail Resources page for helpful resources like landlord-tenant laws, rental documents, and educational articles. And to have more tips and info about the HCV program and similar topics delivered right to your inbox, subscribe to The Landing newsletter below.
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The Housing Choice Voucher (HCV) program, also known as Section 8, is designed by the federal government to assist low-income families, the elderly, and persons with disabilities to afford rental housing. Landlords with voucher tenants are responsible for providing decent, safe, and sanitary housing at a reasonable rent price.
The program offers benefits for landlords, but common misconceptions often position Section 8 negatively. For that reason, we outlined the top four myths about Section 8, so you can have the correct information and know the benefits.
Myth 1: Voucher Tenants Must Have Different Rent Than Non-Voucher Tenants
Landlords are allowed to charge full rent price that exceed Fair Market rent — which are published by the U.S. Department of Housing and Urban Development (HUD) to determine reasonable rent amounts — regardless of who their tenant is.
However, the housing authority must determine if the proposed rent for the unit is reasonable for its size and location. Additionally, HCV tenants may not pay more than 40% of their income on rent. So it’s important to consider both factors when determining a rent price.
You can also refer to local rental comparables to get a general sense of rent price trends in your area based on other rentals with similar square footage, number of bedrooms and bathrooms, and amenities. Avail, for example, offers a Rent Analysis report that is a six-page report that provides comparables for 10 similar properties and other rent price-related information. The report also shows rental benchmarks for Section 8 rentals specifically, which could be helpful when setting a rent price.
To invest in a report for your rentals, create an Avail account to set up your rental properties.
Save on an Avail Rent Analysis report through our Referral Program, where you can earn $50 in account credit.
Myth 2: Voucher Tenants Cause More Issues Than Non-Voucher Tenants
HVC tenants generally get a bad reputation for property damage or back-paid rent. However, no documented statistics show HCV participants are more likely to cause damage or not pay their portion of rent than non-HCV tenants (a majority of the rent comes directly from your local housing authority each month).
A tenant screening process can help you find great tenants, regardless of whether they are part of the HCV program. As a reminder, your screening process must be the same for all tenants to avoid violating Fair Housing laws.
If you’re looking to minimize long-term vacancies, renting to HCV tenants is ideal because they generally live in the unit for seven to eight years on average. This means minimal tenant turnover for you as a landlord, saving you time and money on the turnover process.
Myth 3: It’s Impossible to Evict a Voucher Tenant After a Lease Violation
Like all tenants, HCV tenants are bound by the rules and clauses outlined in the signed lease agreement. If an HVC tenant commits a lease violation, they are subject to eviction like non-HCV tenants.
Examples of lease violations can include failure to pay rent or other amounts due under the lease or repeated violation of the terms and conditions of the lease.
For more information on evictions, refer to your local landlord-tenant laws.
Myth 4: All Your Units Must All Be Rented to HCV Program Tenants
If you own a multifamily property and rent one of your units to an HCV tenant, you are not required to do the same for all your other units. You can follow your established policies for screening prospective tenants and accept non-HCV applicants for other units.
Stay Informed on Fair Housing With Avail
There are common misconceptions regarding the Housing Choice Voucher (or Section 8) program, so it’s important to know what’s fact or fiction. The program offers various benefits worth considering, including timely and dependable payments, regular inspections, and room to request reasonable rent increases.
To continue learning about the HCV and similar topics, subscribe to our newsletter — The Landing below. For more helpful resources, visit the Avail Resources page to find free rental forms, landlord-tenant law pages, videos, and more.
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With the passing of the Fair Housing Act of 1968, many believed that housing discrimination was a thing of the past. Yet, 52 years have passed since the Act was made into law, and cases of housing discrimination are still abundant.
According to the National Fair Housing Association, 28,843 housing discrimination complaints were filed through nonprofit fair housing organizations, as well as local, state, and federal agencies. The same organization estimates that there could be up to 4 million of these cases a year, with the majority going undetected.
This is why informing renters and landlords of acts of housing discrimination is so important. Oftentimes, these discriminatory acts can be so small that renters aren’t aware that they are being harmed, and neither are their landlords or property managers.
“I do think there are people out there who… just don’t know and they don’t have the resources,” said Allison K. Bethel, Clinical Professor of Law at John Marshall in Chicago and Director of the Fair Housing Legal Clinic, about the lack of education on housing discrimination directed towards landlords.
“Honestly there’s a lot of landlords out there who aren’t that well resourced,” Bethel continued, stating that landlords who want to be aware of acts of housing discrimination could benefit from better understanding fair housing legislation along with their renters.
What Is the Fair Housing Act?
The Fair Housing Act of 1968, part of the Civil Rights Act, prohibits housing discrimination based on race, color, national origin, religion, sex, familial status (having children/will soon have children), and disability, also known as protected classes.
While the Fair Housing Act protects renters, landlords, and homeowners on a national scale, 49 states (including D.C.) have since adopted more extensive fair housing laws in order to better protect those often targeted by housing discrimination than the federal law alone.
On its own, the Fair Housing Act works to combat the following form of housing discrimination:
- Refusing to rent, sell or negotiate a place, making housing unavailable, lying about housing availability, or denying housing.
- Changing the rental, sale, or mortgage loan terms based on the person.
- Providing different accommodations or amenities depending on the renter or homeowner.
- Refusing to buy a property or allow for a mortgage loan, or refusing to give information about loans in the first place.
- Using discriminatory statements or practices when appraising a property.
- Using discriminatory statements in rental or property advertisement that suggest a certain person or way of life is preferred.
- Blockbusting: When a property owner is swayed into cheaply selling their home by using the fear of having a racial, religious, or other change to their neighborhood.
Though there are many forms of housing discrimination that go undetected, the protections created by the Fair Housing Act are enforced by Housing and Urban Development (HUD) Fair Housing Testers. The testers will often pose as renters or home buyers looking to make sure that no discriminatory practices are taking place, whether they be in person, over the phone, or in ads.
Current Forms of Rental Housing Discrimination
Though there are many ways that housing discrimination can take place, Bethel says that racial discrimination based on criminal records and discrimination based on disabilities are incredibly common in the U.S.
“Many, many housing providers have these policies that say if you’ve ever been convicted of a crime, we won’t rent to you,” Bethel said. “That’s an example of a policy that on its face doesn’t seem to be problematic, but it really has a disproportionate impact on protected classes, particularly people of color.”
As Bethel explained, the majority of those with criminal backgrounds are people of color, which is why unfair background checks conducted by landlords is considered a form of housing discrimination.
To tackle this, Bethel and the Fair Housing Legal Clinic pushed a Cook County Fair Housing ordinance that provides limits on what types of criminal records can deny a prospective renter housing. It is called the Just Housing Amendment, and its goal is to make sure individuals who committed a crime when they were young were not denied housing for the rest of their lives because of their criminal record.
Other forms of discrimination can include high move-in fees and security deposits, all of which prevent low-income families from being able to move in even when they can afford the monthly rent.
Similarly to this, not having access to an elevator, not allowing those with wheelchairs to occupy first-floor units, or refusing to allow service animals or emotional support animals into the unit are common forms of rental housing discrimination.
Oftentimes, people with disabilities are not rented to, or even not talked to, by landlords and property managers. In 2005, a Chicago study showed that one out of every four callers using a TTY (text telephone) number was ignored. A 2013 study by the NFHA found that TTY-using callers were repeatedly hung up on, left without any follow-up, or given misinformation about the property.
“That’s an example of a thing that… most of us wouldn’t even know that was going on without testing, studies, and things like that,” Bethel said, commenting on the various studies that examined how those who used TTY numbers were treated differently or taken advantage of.
What Happens When You File A Housing Discrimination Claim?
Those who believe they have been discriminated against can file a discrimination claim with HUD, which will investigate the claim and determine whether or not the case involves housing discrimination. If it does, further legal action will be necessary.
According to the Fair Housing Act, a discrimination complaint must be filed within a year of the latest date the discrimination occurred. Filing the complaint in a timely manner and documenting all aspects of the incident(s), including who was involved, when it happened, where it happened, etc., are vital when taking action in a case of housing discrimination.
HUD and the Office of Fair Housing and Equal Opportunity (FHEO) will work together on a declared case and respond to it accordingly. Because it can take several months to receive a response, it’s important to file the complaint as soon as possible. After filing a complaint through HUD, the FHEO will then conduct interviews with the individual who reported the incident, as well as notify all parties involved if the FHEO decides to further investigate the complaint.
The FHEO will then assign one or more investigators to the case, who will compile all information from all parties involved in order to determine whether or not the incident can be classified as a housing discrimination case under state and federal laws. At any point, all parties can come to a Voluntary Compliance Agreement, thus ending the investigation and resolving the matter entirely.
However, if an understanding isn’t reached, all parties involved will have 20 days after receiving a “Determination of Reasonable Cause” and “Charge of Discrimination” notice to decide whether or not the case will be tried before a Federal District Court judge or a HUD Administrative Law Judge.
If the case is filed through a District Court judge, HUD will refer the case to the U.S. Department of Justice, which will file a civil lawsuit for the party that filed the complaint unless they choose to use their own attorney for the case.
With either route, there will then be a hearing to determine the ruling of the case. If a private attorney is not used, the government will not charge those who claim to have been discriminated against for any legal fees or costs. If one is used and the court finds that there was discrimination, then those who are at fault will be charged with the other party’s legal fees.
How Can Renters and Landlords Advocate for Themselves?
The aftermath of these rulings can vary. If the courts rule in favor of there being discrimination, the party that is held responsible could face anything from paying reparations and changing the discriminatory policies to taking classes on Fair Housing and housing discrimination.
As Bethel said, it’s easy for landlords and property managers to not even realize that they are discriminating against their renters. The same is true for those being discriminated against; a lack of financial resources can often lead to many housing discrimination cases going uncharged.
That is why staying informed on all local, state, and federal landlord-tenant laws regarding housing discrimination is just as important as knowing what the Fair Housing Act is and how it affects renters and landlords across the nation.
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It’s a good idea to have a thorough screening process for prospective renters, but if you don’t know the Fair Housing laws, you might not realize there are certain questions that are illegal for landlords to ask tenants.
To avoid violating renter protections — and protect yourself from a bad tenant — the best offense is a clear and consistent screening and application process. And that starts with knowing what information is in-bounds for assessing applicants and what isn’t.
Questions Landlords Can (and Should) Ask When Screening a Tenant
At a basic level, you need to know four things about any prospective tenant:
- Can they afford the rental rate and pay on time, every time?
- Are they amenable to a move-in/move-out timeline that aligns with the unit’s availability?
- Will they be a safe and respectful neighbor and tenant?
- Will they agree to allow you to verify their information with reference, background, and credit checks?
The first two questions can — and should — be part of your first conversation with a prospect. You are legally allowed to ask about their monthly income and should do the math on your own to ensure it’s at least 2.5 to 3 times the asking rent amount.
But it’s not enough to stop here; you’ll want to verify that income amount during later phases of the screening process. The area to avoid regarding income, however, is asking where it comes from. Asking a tenant if they receive welfare or another public assistance is considered discriminatory.
You’re also allowed to ask when they’re planning to move. If the tenant wants to move in immediately or is looking more than two months in advance, that can be a warning sign. Immediate occupancy needs suggest they might be bad at planning while searching too early could mean they’re not yet serious.
True, those assumptions are speculative, but because they’re speculations based on logistical information that has nothing to do with any of the applicant’s protected categories under the Fair Housing Act (race, nationality, religion, sexual orientation, gender (in some, but not all states), relationship status, children, age or disability), they’re legally fine.
Assessing whether someone will be a safe and respectful tenant walks a finer line. Landlords are entitled to know about any criminal convictions (note that this is changing in some cities), though you cannot discriminate against someone for having a criminal record when deciding whether or not to rent to an applicant. You also can’t ask about any arrest records as innocent people can be arrested.
Confirming simply that applicants are on board with a background check is a good way to ensure you’ll have access to criminal information without personally having to risk asking anything that might be illegal. Likewise, credit checks and employer or former landlord references provide excellent insight into a tenant’s past behavior.
One pro tip: If possible, ask the tenant to share information for a former, rather than current, landlord. A current landlord will be highly motivated to get a bad tenant out, so they may not be the best source of information.
Questions Landlords Cannot Ask When Screening Tenants
Laws governing tenant screening exist at both the state and federal levels. State laws align with the state where the rental property is located, so even if you’re in California but your unit is in Illinois, Illinois laws apply.
The goal of landlord-tenant laws is to protect both parties. As such, Fair Housing Act rules particularly focus on removing opportunities for conscious or unconscious bias. Questions that might feel like — and even be intended as — polite small-talk, such as asking where a person’s accent is from or if they have any children, should be avoided since they relate to protected facets of personal identity that can be the basis for discrimination.
Here are some examples of questions that may seem benign, but are actually illegal to base any rental decisions on under the Fair Housing Act:
1. How old are you? Age is a protected category. With the exception of senior living communities, choosing whether to rent to a person based on their age is illegal.
2. Do you plan to have kids? Asking about children is off-limits, including inquiries into the possibility of having kids in the future. You can, however, ask how many people will be living in the unit.
3. Do you have any disabilities? If a unit is available to rent to the public, it must be made equally available to able-bodied renters and those with disabilities. Even directing a prospective tenant to a specific unit because you feel it’s better suited to their needs can be a violation of the Fair Housing Act.
4. Are you married? Since familial status is a protected class under the Fair Housing laws, you should never ask a potential tenant about their marital status.
5. What church do you attend? Even if you’re just trying to make conversation, steer clear of anything that touches on religion or religious affiliation, which is its own protected class.
6. Where were you born? Even if seemingly innocent, questions regarding nationality or ethnic background are off-limits, since assessing a tenant based on this information is discriminatory.
Remember: Aspects of an individual’s identity that could be used to discriminate against them (even if it’s not at all your intention) are illegal. Even language that would seem innocuous, such as advertising a unit as “Great for young couples!” shows a preference for one group over another and can be held against you.
As a guideline, focus on the questions that will get you the necessary, need-to-know information from a tenant. Review the Fair Housing rules, and if a question seems like it might be out of bounds, don’t ask.
To cut out the guesswork and simplify the tenant screening process for yourself, consider using a standardized rental application to ensure everyone is treated fairly and you get the best information to make good decisions for your rental unit.
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Renters in the City of Chicago are covered by the city’s Residential Landlord-Tenant Ordinance. But many renters (and their landlords) are unaware of the rights and responsibilities they have under the ordinance. Since about 44% of residents in the City of Chicago are renting, it’s a good idea to know what your landlord should — or shouldn’t — be doing.
The Residential Tenant-Landlord Ordinance (RLTO) outlines tenant-landlord law and applies to renters and their landlords in the city proper only, excluding those who live in an owner-occupied building with 6 units or less. If you’re part of the group that’s covered by Chicago’s RLTO, these are some of the things your landlord might be doing illegally — even if they don’t realize it.
Not Fixing the Heater
Heat is extremely important in a city known for its polar vortexes. Chicago has a city-wide heat ordinance that outlines landlord responsibilities when it comes to heat; the ordinance states that from September 15 through June 1, the temperature inside a rental property must be least 68 degrees from 8:30 a.m. to 10:30 p.m., and at least 66 degrees from 10:30 p.m. to 8:30 a.m.
If your radiator goes out in the middle of winter, your landlord is expected to respond quickly. If they don’t, they can face a fine of up to $500 each day they neglect to address the heat issue. According to the ordinance, the reason for a lack of heat doesn’t matter — landlords have to make sure their rental properties are heated. This is why the landlord takes responsibility for the heat in many Chicago leases, bundling this utility into the rent.
Mishandling Bed Bugs
Chicago has a problem with bed bugs. In 2019, the city ranked No. 3 on Orkin’s list of top 50 bed bug cities, just behind Baltimore and Washington, D.C. Bed bugs in Chicago are enough of an issue that the city passed an ordinance in 2013 to address them specifically, outlining renter and landlord duties when dealing with infestations.
According to the ordinance, a landlord has to promptly notify the city when they become aware that their rental property has bed bugs. Landlords are also required to pay for bed bug removal unless it can be proved that the renter brought them in. That said, it’s not easy to prove the origin of bed bugs.
A landlord must also inspect and treat the units directly above, below, and on both sides of the infested unit. So if you find out your neighbor has bed bugs, your unit should be inspected, too, and treated, if necessary.
Stopping By
You and your landlord might have a great relationship, but there are still rules about how often a landlord can stop by. According to the Chicago RLTO, a landlord has a right to access their rental property but must give a renter two-days notice. This notice can be communicated via phone, email, mail, written notice, or another “good faith” means of communication.
Not Changing the Locks
Under the Chicago RLTO, landlords have to change or re-key the locks when an old renter moves out and a new one moves in. According to the law, both the front and rear doors in an apartment must have a deadbolt lock, and the front door has to have a peephole or some sort of window that allows you to see who’s outside.
The landlord is responsible for the cost of installing the locks, so as a renter, you’re in within your right to request this upon move-in if it hasn’t already happened.
Mishandling the Security Deposit
Many renters and landlords don’t realize that under Chicago’s ordinance, a landlord must hold a security deposit in an interest-accruing account, without combining the renter’s security deposit money with their own.
The renter is also entitled to all of the interest earned on the money at a rate set by the city comptroller, and the deposit must be returned to the renter within 45 days of the lease ending, excluding deductions for damages to the property or unpaid rent. If a landlord doesn’t meet these requirements, the renter can sue the landlord for two times the amount of the deposit.
Kicking Out a Renter After Foreclosure
The City of Chicago took specific measures in 2013 to address the effects of mortgage foreclosures on renters and ensure that renters living in a foreclosed property have options. Still, some landlords and renters are unaware that according to the Keep Chicago Renting Ordinance, the new owner of a foreclosed property has to provide the renter living there with a lease renewal (at no more than a 2% increase on the current rent) or pay the renter a $10,600 relocation assistance fee.
Not Responding to Requests
Chicago landlords have to address repairs within 14 days of a renter reporting them, and must maintain a habitable dwelling for renters that’s in compliance with municipal codes. This includes major things — like providing working heat, electricity and plumbing — but also covers issues like rodent and pest infestations or providing necessary smoke detectors or fire extinguishers.
If a landlord doesn’t make a necessary repair, a renter can use the “repair and deduct” method — meaning they pay to have the repair made, and then deduct the cost from the next month’s rent. In Chicago, renters can deduct $500, or half the monthly rent, whichever is greater. Before you resort to repair and deduct, make sure you understand the process and necessary steps.
Ignoring Fair Housing Laws
This one isn’t Chicago-specific, but always important to keep in mind. The Fair Housing Act protects renters and sets guidelines for landlords in the rental process. According to the Fair Housing Act, it’s illegal to discriminate based on sex, race, color, national origin, religion, familial status or disability when renting or buying a home.
And while the Fair Housing Laws don’t specifically prohibit discrimination based on sexual orientation or gender identity, Illinois is one of the 22 states that does. If a landlord denies a renter in the rental process, they have to have a legitimate legal reason to back it up.
If you have questions about your Chicago lease agreement or you want more information about the Chicago Residential Landlord-Tenant Ordinance, Avail has you covered. And if you’re in the market for a new place (and a new landlord), check out available properties with Realtor.com®.
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Fair housing laws have come a long way in the past 50 years, but there is still a lot of work to do. The Fair Housing Trends Report found that the number of housing discrimination complaints in the U.S. have continually increased over the past 4 years, and were up by 2% in 2017. Housing discrimination was reported the highest among people with disabilities, followed by racial discrimination, familial status, national origin, sex and gender, and religion. As an independent landlord, it is your duty to ensure each of your applicants is treated equally.
What Is the Fair Housing Act?
The Fair Housing Act of 1968 is a federal act in the U.S. that protects people from discrimination when they are renting or buying a home, getting a mortgage, seeking housing assistance, or engaging in other housing-related activities. The act protects against discrimination based on race, color, national origin, religion, sex, family status, or disability — but it doesn’t protect people against discrimination based on sexual orientation or gender identity.
According to the Human Rights Campaign, only 22 states in the U.S. either prohibit discrimination based on sexual orientation and gender identity or prohibit discrimination based on sexual orientation only. But housing discrimination continues to exist across all states, those with and without anti-discrimination laws.
Cases of Housing Discrimination
The Urban Institute conducted a pilot study examining housing discrimination against same-sex couples and transgender individuals and found that these groups of home-seekers faced discrimination from agents, from being quoted higher yearly average costs to being told about fewer available units.
Researchers from the Suffolk University Law School found similar problems in their Housing Discrimination Testing Program. Sending out one group of trans or gender non-conforming individuals and another of group non-trans individuals to respond to the same rental ads, the researchers found that the trans or gender-non conforming group was faced with discriminatory treatment 61% of the time, were 21% less likely to be offered a financial incentive to rent, and 9% more likely to be quoted a higher price.
And for home-seekers that don’t live in states with anti-discrimination laws based around sexual orientation and gender identity, options for taking action against this kind of rental discrimination are limited. In the end, rental discrimination has serious effects, since it directly influences where prospective renters can live and what kind of resources are available to them there.
What Can Landlords Do to Avoid Housing Discrimination?
It’s up to a landlord to ensure they are being fair and treating each one of their prospective tenants with respect. According to Robin Krieb, Chicago-based realtor and member of the National Association of Gay & Lesbian Real Estate Professionals, sexual orientation and gender identity has no place in renting.
“It’s not any of their business,” said Krieb about landlords discriminating against members of the LGBTQ community. “They can know a tenant’s financials and credit, but what does the relationship between parties matter in terms of who you’re renting to?”
So what can landlords do to make sure they are inclusive to everyone? According to Krieb, the main thing is treating everyone with respect — and also knowing what kind of information is appropriate in a tenant-landlord relationship. Below are some recommendations for ensuring you are being a fair and inclusive landlord.
Establish Boundaries
While some information like financials, credit, and background checks are essential information to obtain from your renters, sexual orientation or gender identification aren’t. Because information of this kind isn’t typically included on rental applications or leases, there is no reason for landlords to seek out these details from their tenants.
Use Gender Non-Specific Pronouns
In cases where a rental application or lease asks the tenant to choose a gender or a title like “Mr.” or “Mrs.”, landlords can also elect to include gender-neutral or preferred pronouns.
“Including something like preferred pronouns can make someone feel like they will be welcome and they don’t need to hide who they are,” Krieb said.
An alternative is avoiding gender-specificity altogether. Avail provides leases that don’t refer to gender, titles, or pronouns at all.
State That You Are Inclusive
If you have the opportunity or feel it could be beneficial, you can make it known in your rental ad that you are inclusive to all renters.
Be Observant
Listen to your tenants — if you are renting to a couple, pay attention to how they refer to each other. Do they use terms like “husband and wife” or “partner”? Being aware of smaller details like this can be helpful in your tenant-landlord relationship.
Be Professional
Above all, treat all of your tenants and prospective tenants equally and with respect. Keep things professional, and refrain from doing or saying anything that could potentially offend or stereotype prospective tenants or renters.
If you are a tenant and believe you may have been discriminated against, and are not protected under the Fair Housing Act in your state, find legal help here.
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Large commercial developers routinely make their buildings ADA compliant to satisfy the Americans with Disabilities Act. But that’s usually not the case for many small- and first-time landlords who might not know if their units are suitable for individuals with disabilities, how to make them so if they aren’t, or whether they even need to.
Who Is Considered Disabled?
When you are considering disability for the purposes of rental property, your interest lies with the legal, as opposed to the medical, definition of disability. The legal definition of disability, as defined by the ADA, is a person with a “physical or mental impairment that substantially limits one or more major life activities.” A person is also considered disabled if they don’t currently have a disability but they were impaired in the past, according to the ADA.
Some examples of disabilities include the following:
- Blindness or other visual impairments
- Cancer
- Cerebral palsy
- Depression
- Diabetes
- Epilepsy
- Hearing or speech impairments
- Multiple sclerosis
- Muscular dystrophy
- Orthopedic impairments
- Paralysis
- Thyroid gland disorders
- Tuberculosis
- Loss of body parts
Disabled Renters’ Right to Accommodations by the Landlord
Disabled people have the same rights as everyone else to live in any rental unit they choose. It’s illegal for landlords to decline a prospective tenant solely because of a disability, as outlined by the Fair Housing Act. It’s also against the law to ask applicants who do not ask for any special accommodations if they have a disability.
People with a disability are a protected class under the Fair Housing Act, which prohibits discrimination based on the seven protected classes listed below:
- Race
- Color
- Religion
- National origin
- Sex
- Disability
- Familial status
You can, of course, decline to rent to a tenant with a disability if that applicant doesn’t meet your financial rental requirements, or if they have been evicted in the past. As long as you treat renters with a disability as you do every other applicant, you’re doing what’s expected of you.
But what does it mean for you if a disabled applicant does meet your rental requirements and you do want to rent your unit to that person? This could mean anything from changing your “no pet” policy to accommodate an emotional support or service animal to making small changes to the rental (adding an assistance rail in the bathroom or including a TTY number on the landline).
Disabled Tenants’ Right to Make Modifications
You do not need to honor requests that will create a financial hardship for you or that will make your rental unit difficult to rent to someone else in the future.
For example, your tenant might be in a wheelchair and would have a much easier time if the countertops were lowered in the kitchen and bathrooms. At a typical cost of $2,912 per countertop, you might not be able to afford this project.
However, if your tenant requests to make the modification at their own expense, you can allow it. Lower countertops, though, would probably not be desirable for people who are not in a wheelchair, so in this case, you might allow your tenant to make the modification with the understanding that upon moving out, they will need to replace the lower countertops with those that are standard height.
It’s a good idea to collect the money for the replacement job from the tenant before they make any modifications. You would put that money in an escrow account. That way, you can be sure the money will be there when it’s time to return your rental to its original state.
You Can Ask for Proof
There’s another reason you can turn down a modification request from a tenant: if that request is unrelated to the tenant’s disability. Therefore, you can ask for proof that the modification is related to the disability. For example, installing a ramp so a tenant in a wheelchair can get in and out of the house would be an obvious request that the ramp is related to the disability and you shouldn’t ask for proof.
However, a tenant may make a modification request that does not clearly relate to their disability. In these cases, you can ask for more information before you make the modification. In order to maintain a respectful and professional relationship, you can ask for a doctor’s note from the tenant stating that the modification is legitimate without any further explanation.
State and Federal Laws
When you become a landlord, you must know and abide by both national and state landlord-tenant laws when it comes to Fair Housing laws and making accommodations for renters with disabilities. Reference our state-by-state landlord-tenant law directory to familiarize yourself with the rules and regulations that apply to your rental property so you can be confident in your actions as a landlord.
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]]>According to the Fair Housing laws, it is illegal for a landlord to:
- Refuse to rent a dwelling to any person because of race, color, religion, sex, national origin, familial status, or disability.
- Discriminate based on race, color, religion, national origin, familial status, or disability in the terms, conditions, privilege of the sale or rental of a dwelling.
- Advertise the rental of a dwelling indicating preference of discrimination based on race, color, religion, national origin, familial status, or disability.
- Coerce, threaten, intimidate, or interfere with a person’s enjoyment or exercise of housing rights based on discriminatory reasons, or retaliate against a person or organization that aids or encourages the exercise of fair housing rights.
Every landlord should be aware of all federal anti-discrimination laws, as well as those in their state and locality. Choosing to ignore, or even unknowingly break, these laws could lead to long and expensive lawsuits and costly penalties, which is why every landlord needs to know about these protections and how they work within the rental process.
In some cases, a property may be exempt from Fair Housing Laws, but know that the overwhelming majority of cases are subjected to these laws.
The below cases are exempt from Fair Housing laws:
- An owner-occupied building with four or fewer units.
- A single-family housing unit rented without the use of a broker.
- One of the certain types of housing operated by religious organizations and private clubs that limit occupancy to their members only.
- Housing reserved exclusively for senior citizens that are occupied solely by persons 62 years of age or older, or houses intended and operated for people over the age of 55.
Your property may still need to adhere to state and local laws, so be sure to check the legislation in your area to see if these laws are contradicted anywhere.
To get an exact copy of your state’s fair housing and anti-discrimination laws, you can visit the U.S Department of Housing and Urban Development website. You can find information specific to your state on their state info page.
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The following are illegal justifications to not rent to a prospective tenant. These would be in violation of Fair Housing laws and would most certainly be considered discrimination.
1. Race and Religion
You can neither accept nor deny housing to someone based on that person’s race or religion, nor can you discriminate against any renters or applicants because of the color of their skin.
2. National origin
Discrimination based on national origin is also prohibited. This includes situations such as requiring credit checks or employer references from applicants of a certain nation. This gets tricky when it comes to tenants who have immigrated from another country illegally; while discrimination based on a person’s immigration status is not illegal, you want to avoid singling out a particular race, religion, or nationality. To avoid a discrimination charge, if you decide to inquire about an applicant’s immigration status, you should ask that same question of all your applicants.
3. Familial status
It is illegal to discriminate against pregnant women or families with children. It is also illegal to try to effectively block these groups by placing restrictions on the maximum number of people permitted to occupy a unit. This is distinct from establishing occupancy standards. Occupancy standards are usually set by the state, local, and federal health and safety codes. The general rule of thumb is two persons per bedroom, but even this can vary based on factors like the size of the bedrooms. The best practice is to apply reasonable restrictive occupancy standards to all or your rentals based on local laws and safety needs.
4. Sex and sexual harassment
You can’t refuse someone based on sex or steer them in the direction of a particular unit. There is also a law against sexual harassment of a potential tenant — when it comes to potential tenants, you can’t approve or reject a tenant, for example, because they won’t go on a date with you.
5. Sexual orientation
While federal law does not see sexual orientation as a protected class, many states do consider it a breach of Fair Housing laws if a landlord uses a tenant’s sexual identity against them. Lambda Legal is an excellent resource to use to find out about laws in your area.
6. Age
The Fair Housing Act prohibits discrimination based on age, and in fact, many courts consider age to be a subset of familial discrimination. There is an exception, however, for seniors-only multi-housing as long as federal guidelines are followed.
7. Disability
According to the HUD website, “Federal laws define a person with a disability as ‘Any person who has a physical or mental impairment that substantially limits one or more major life activities; has a record of such impairment; or is regarded as having such an impairment. Therefore, you cannot reject someone based on a disability.
8. Marital status
While federal law doesn’t prohibit discrimination based on whether someone is married or not, state laws vary wildly on this issue. The U.S. Department of Housing website should be able to point you in the direction of your state’s laws.
9. Arbitrary discrimination
This is the catch-all part of the law, and it means you’re not allowed to discriminate against a group just because they aren’t specifically mentioned in a given law. For example, you can’t systematically exempt redheads from your units, nor can you exempt people with facial piercings or school teachers.
When selecting tenants for your rentals, you should always rely on good and consistent business practices no matter who is applying for your property. Period.
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Penalties for Fair Housing violations can vary depending on whether the case is processed via court, HUD, or elsewhere. Penalties can include fines, punitive damages, and attorney fees. This is why it’s important to follow a consistent process with every applicant and keep clear records of communications along the way.
Consult a Lawyer
If you get involved in a housing lawsuit, consult a lawyer with experience defending against discrimination claims. There are multiple ways a claim may be filed against you, including tenant complaints to a private lawyer, an investigation by a watchdog group, or a discovery made by a HUD tester posing as a renter in order to find any discriminatory actions made by landlords. If the organization concludes that a landlord is discriminating against certain tenants, they can file a complaint or lawsuit against said landlord independently.
If you’re found to be in violation of Fair Housing laws, penalties can include:
- A charge against you by the U.S. Departing of Housing and Urban Development where you’ll need to attend several hearings and defend the claim in front of a HUD Administrative Law Judge. Note that the U.S. Department of Justice (DOJ) may pursue the case on behalf of the plaintiff.
- The landlord will be responsible for the plaintiff’s compensatory damages that could include out-of-pocket expenses while finding alternative housing, rent fees associated with alternative housing, and/or legal fees to process the claim.
- Non-economic damages may also be awarded for the humiliation, mental anguish, and/or psychological injuries of the plaintiff. These are in addition to the above-mentioned expenses.
- Civil penalties may be levied up to $16,000 for the first violation, or $65,000 if there were two or more cases of discrimination up to seven years prior to the present case. In cases where the DOJ is involved, the fine for civil penalties can go up to $100,000.
- Punitive damages may also be awarded by federal district courts. These aren’t damages to reimburse the complainant but rather damages to punish the wrongdoer where there is clear evidence of willful or malicious intent.
- Courts may issue injunctions if they feel prompt action is necessary to prevent immediate and irreparable harm.
Additionally, HUD keeps a record of all charges that are filed through them and makes this information publicly available, which means past cases of housing discrimination will not be quick to disappear.
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