Legal compliance in property management is essential for protecting your investment and avoiding costly lawsuits. This comprehensive guide covers federal, state, and local regulations that property owners must follow to operate legally and ethically.
1. Fair Housing Compliance
The Fair Housing Act prohibits discrimination in housing based on protected characteristics:
Protected Classes
- • Race and Color
- • National Origin
- • Religion
- • Sex and Gender
- • Familial Status
- • Disability
Compliance Practices
- • Consistent screening criteria
- • Written policies and procedures
- • Equal treatment documentation
- • Reasonable accommodations
Reasonable Accommodations
Property owners must provide reasonable accommodations for tenants with disabilities:
- Service Animals: Allow service animals even with "no pets" policies
- Modifications: Permit necessary physical modifications to units
- Policy Exceptions: Make exceptions to standard policies when reasonable
- Accessibility: Ensure accessible parking and common areas when possible
2. Lease Requirements & Regulations
Lease agreements must comply with state and local requirements:
Essential Lease Clauses
- Property Description: Complete address and unit details
- Lease Term: Start date, end date, and renewal terms
- Rent Amount: Monthly rent and payment due date
- Security Deposit: Amount and return conditions
- Maintenance Responsibilities: Landlord vs. tenant obligations
- House Rules: Property-specific regulations
Legal Disclaimer
This guide provides general information only. Always consult with local housing authorities and legal professionals for jurisdiction-specific requirements and current regulations.
3. Legal Tenant Screening
Screening must be conducted fairly and consistently:
Allowable Screening Criteria
- Credit history and score
- Income verification (typically 3x rent)
- Employment history
- Rental history and references
- Criminal background (with limitations)
Prohibited Practices
- Discriminatory questions about protected classes
- Different screening standards for different applicants
- Blanket bans on criminal history
- Requiring excessive income documentation