Owning a rental property can be a great way to earn a steady passive income and grow your wealth over time. However, being a landlord is no easy task. You have to manage maintenance, tenant requests, financial reporting, and crucially, comply with Texas rental laws, including the Fair Housing Act.
Non-compliance with the laws can result in severe legal consequences, such as hefty fines and lawsuits. In this guide, Real Property Management Prestige explains everything housing providers and landlords need to know about their legal responsibilities in Texas. Read on to learn how to stay compliant with housing rules and maintain positive landlord-tenant relationships.
What Is the Fair Housing Act?
The Fair Housing Act, enacted in 1968, ensures everyone has equal opportunities when renting or buying property without any discrimination. It prohibits discrimination based on race, color, religion, sex, national origin, disability, and family status. This means landlords, real estate agents, and sellers cannot treat people unfairly or deny housing based on these factors.
For example, in Texas, a landlord cannot refuse to rent or provide housing to someone just because they have children or are of a certain race or religion. Landlords are also required to provide reasonable accommodations for people with disabilities, such as allowing service animals or making rental homes accessible.
The U.S. Department of Housing and Urban Development (HUD) oversees compliance with the Federal Fair Housing Act. They handle complaints regarding discriminatory housing practices. If you want to learn more about the fair housing, the HUD website is a great resource!
What Are Protected Characteristics Under the Fair Housing Act?
The laws prohibit all forms of discrimination based on six protected classes. Texas follows these federal protections without adding any extra state-specific categories. Here’s what Texas landlords need to know:
Race
In Texas, landlords or housing providers cannot reject interested renters based on their race. Additionally, rental owners are not allowed to use racially discriminatory terms or phrases in their listings and marketing materials when advertising a rental for rent.
National Origin
Landlords and real estate agents in Texas cannot reject rental applications based on the tenant’s national origin under housing rules. This includes rejecting fair housing to interested applicants because of their language and culture, as well as giving preferential treatment to applicants of a certain nationality due to their national origin.
Religion
In Texas, landlords are prohibited from discriminating against tenants based on their religious beliefs. To stay compliant with housing laws, it’s best to avoid phrases like “great for [x religious groups]” in rental listings and to refrain from asking about religious beliefs during the screening process.
Sex
Landlords cannot reject renters or buyers based on sex, it is discrimination. Even implying that a property is better suited for a particular gender in your listing of rent can breach the housing laws and is considered housing discrimination.
Familial Status
Housing discrimination based on family status can be as simple as writing that your Texas rental is more suitable for families or single individuals in your listing to rent a rental.
Remember to avoid using phrases like “better suited for families” or “childless couples only” in your listings to comply with the laws. Another important point to note is that the Fair Housing Act prohibits charging higher security deposits for families with children.
Disability
Texas landlords must not discriminate against individuals with a disability in accordance to the fair housing rules. This includes declining applications because a disabled tenant might not be a good fit for your unit.
Additionally, landlords are required to provide reasonable living arrangements for persons with disability and make necessary modifications to better accommodate disabled renters.
How To Comply with the Fair Housing Act?
While complying with fair housing rules can seem daunting, it doesn’t have to be. Here are some practical tips to help you navigate these regulations:
- Educate Yourself: Familiarize yourself with the Fair Housing Act to prevent housing discrimination based on protected characteristics and avoid misunderstandings during the screening process.
- Set Consistent Policies: Apply rental policies and criteria uniformly to all applicants to avoid setting different standards based on personal characteristics and ensure fair housing.
- Offer Equal Treatment: Treat all tenants and applicants equally, from rental showings to handling maintenance requests.
- Advertise Inclusively: Avoid discriminatory language in rental listings and advertisements. Focus on property or dwelling features rather than specific renter qualities.
- Provide Reasonable Accommodations: Make necessary and reasonable accommodations for tenants with disabilities, such as allowing service animals or modifying units for accessibility for fair housing.
- Screen Tenants: Landlords are required to consider all rental applications, but they can still select tenants based on non-discriminatory factors such as rental history and credit score. Conducting thorough tenant screenings can help landlords avoid difficult eviction procedures with problematic tenants in their dwelling.
- Document Everything: Keep thorough records of tenant interactions, applications, and decisions. This helps demonstrate compliance with housing laws and provides evidence if a complaint arises.
- Respond to Complaints: Take any housing discrimination complaints that may arise seriously. By addressing them promptly, you’ll ensure compliance with fair housing laws and maintain your tenants’ trust.
- Seek Legal Advice: If you’re unsure of compliance with the Fair Housing Act, consult a legal professional specializing in fair housing laws for guidance.
Bottom Line
The Fair Housing Act ensures renters and homebuyers have equal opportunities to find suitable fair housing services. As a landlord, you have to comply with these laws and treat all tenants fairly.
By offering inclusive advertising, setting consistent policies, and providing equal treatment, you’ll protect yourself and your investment from legal issues. If you have more questions about the Fair Housing Act in Texas, contact Real Property Management Prestige. Our team is here to help!
Disclaimer: Please note that the information provided in this blog is intended for general guidance and should not be considered as a replacement for professional legal advice. It is important to be aware that laws pertaining to property management may change, rendering this information outdated by the time you read it.