Fair Housing Laws for Small Landlords
Understand protected classes, advertising compliance, objective screening criteria, and how to avoid costly discrimination claims.
LEGAL DISCLAIMER
This guide provides a general overview of Fair Housing principles common in the US, UK, and EU. Laws are complex and local jurisdictions often add more protected classes. This is for informational purposes only and is NOT legal advice. Consult a qualified attorney to ensure compliance with your specific local laws.
As a landlord, your primary goal is to find responsible, reliable tenants. However, the process of finding that ideal tenant is governed by a strict set of laws designed to ensure everyone has equal access to housing. These are known as Fair Housing laws. For small landlords, a single violation—even an unintentional one—can lead to devastating lawsuits, fines, and reputational damage.
Understanding and internalizing these laws is not optional; it is a fundamental requirement of being a landlord. This guide will demystify Fair Housing compliance, giving you the practical knowledge to protect both your investment and the rights of prospective tenants.
What Are Protected Classes?
The core of Fair Housing law is the concept of "protected clases." These are groups of people who cannot be discriminated against in housing-related transactions. You cannot make any decision—to rent, to deny, or to set terms—based on a person's membership in a protected class.
The 7 Federal Protected Classes (U.S. Fair Housing Act):
- Race or Color
- National Origin (Including ancestry and language)
- Religion
- Sex (Now includes sexual orientation and gender identity under federal interpretation)
- Familial Status (Presence of children under 18)
- Disability (Physical or mental)
Local and International Laws Add More Protections
Many states, cities, and countries (including the UK and across the EU) expand on these protections. Additional common protected classes include: age, marital status, source of income (e.g., housing vouchers), veteran status, and political beliefs. Always research your specific local laws.
Compliance in Advertising: First Impressions Matter
Your compliance journey begins before you even receive an application. Your rental ad must be inclusive and focus on the property, not the prospective tenant.
Rule #1: Describe the Property, Not the People.
Avoid Discriminatory Language:
- "Perfect for a professional couple" (discriminates against singles, families)
- "No kids allowed" (illegal familial status discrimination)
- "Quiet, mature building" (discriminates against families, implies age preference)
- "Christian home" (religious discrimination)
- "Must be employed" (discriminates against those with other sources of income)
Use Compliant Language:
- "Spacious two-bedroom apartment"
- "Features a modern kitchen and large living room"
- "Easy access to public transport"
- "All applicants are welcome"
- "Income verification required"
Fair & Consistent Screening: Your Best Defense
The key to legally defensible tenant screening is consistency. You must establish objective criteria and apply them uniformly to every single applicant.
The Non-Negotiable Screening Process:
- Create Written Criteria: Before advertising, write down your minimum requirements. This is your objective standard.
- Apply Criteria to Everyone: Every applicant, without exception, is measured against the same written criteria.
- Document Everything: Keep a record of every application and the specific, business-based reason for each acceptance and denial, tied back to your criteria.
Spotlight on Disability and Reasonable Accommodations
This is a major area of confusion and risk for landlords. The law requires you to make "reasonable accommodations" and permit "reasonable modifications" for individuals with disabilities.
- A Reasonable Accommodation is a change in your rules, policies, or services. A classic example is making an exception to a "no pets" policy for a tenant's emotional support animal. You cannot charge a pet fee for an assistance animal.
- A Reasonable Modification is a physical change to the property. A tenant may request to install grab bars in the bathroom. Generally, you must permit this, but the tenant is typically responsible for the cost of installation and for restoring the property upon moving out.
Final Best Practices
- Be Consistent with Fees: Charge the same application fee, security deposit, and late fees to everyone.
- Set Occupancy Standards Carefully: While you can limit the number of occupants, be reasonable. A common, defensible standard is "two persons per bedroom," but check local laws.
- Train Your Staff: If you have employees or agents, ensure they are thoroughly trained on Fair Housing laws. You are responsible for their actions.
Screen Tenants Consistently and Confidently
Property Aura helps you stay compliant by providing a system where you can easily track and document your tenants. Maintain consistent criteria, keep applicant records organized, and build a legally defensible process from the ground up.