Fair housing laws can feel completely indecipherable to landlords in Los Angeles, even those property owners who have been renting out homes for years. Part of the problem is that the laws are always changing, and another part of the problem is that there are federal laws and state laws, and then the local governments that are tasked with enforcing those laws.
It’s a lot.
As a real estate investor and rental property owner, you need to keep up with the evolving fair housing laws. Otherwise, you could find yourself making some legal mistakes that are detrimental not only to your earnings, but also your reputation. You don’t want to pay $16,000 or more for a fair housing violation. You definitely don’t want to be known as the landlord who was investigated for discrimination.
As property management experts in LA, we make it a point to stay on top of all the rental laws, particularly fair housing laws that impact how you market your property, screen your tenants, and draft your lease agreements. It’s incredibly important to be fair and consistent. It’s incredibly important to know that you’re compliant with all the state and federal laws.
State and federal fair housing laws provide equal access to housing for all Los Angeles residents, and they’re essential to keeping our housing market diverse and accessible. The California Department of Real Estate requires ongoing training around fair housing issues, and we go beyond the minimum requirements to ensure we are experts in this area.
Let’s take a look at what you need to know about fair housing and your rental property in Los Angeles.
State and Federal Fair Housing Laws: Who Are the Protected Classes?
When we talk about fair housing in Los Angeles, we’re talking about federal as well as state requirements. Los Angeles follows the state laws when it comes to fair housing, and those state laws are administered and enforced by the California Civil Rights Department. The Los Angeles Housing Department (LAHD) and the Los Angeles County Development Authority (LACDA) provide resources to tenants, property owners, and property managers around fair housing and discrimination.
If you don’t have a property management partner who can help you, these agencies are your best starting points for information.
The basic foundation of all federal and state laws around fair housing are a set of protected classes. The federal Fair Housing Act, which has been around since 1968, establishes seven protected classes, and the state list is much longer.
Federal laws say you cannot discriminate against applicants or tenants based on:
- Race
- Color
- Religion
- Sex (updated language in 2024 includes gender identity and sexual orientation)
- Disability
- National origin
- Familial status
What does this mean when it comes to your day-to-day screening and managing? It means that you cannot deny an otherwise qualified application because a tenant has children or was born in another country. You cannot say no to a tenant with a wheelchair and you cannot charge different rents for men and women.
As we mentioned, California goes even further. There are far more protected classes under state fair housing laws than federal. When we’re talking about your fair housing requirements in Los Angeles, you have all of those seven classes we mentioned above and also:
- Criminal history (non-relevant convictions)
- Primary language
- Ancestry
- Immigration status
- Marital status
- Pregnancy
- Status as a victim of domestic violence or stalking
- Political affiliation
- Age
- Gender identity and gender expression
- Medical condition
- Genetic information
- Military or veteran status
- Source of income
Be cautious and avoid making decisions, consciously or unconsciously, based on these characteristics. The greatest dangers come when you’re marketing properties, choosing tenants, setting rental terms, granting privileges, or applying services and rules. It’s easy to make a mistake, even when you don’t intend to discriminate. For example, let’s say you waive a late fee for one tenant but not another. You could be accused of discriminating against the tenant who had to pay the late fee. How can you prove that you’re not? Consistency and documentation is critical.
Protect yourself by establishing an objective and consistent process. Keep all of your rental criteria in writing and easily accessible so that tenants know what you’re looking for before they even apply.
Easy Mistakes in Fair Housing: What to Avoid
Some of the hot button fair housing topics in Los Angeles property management include service animals and companion animals, criminal background checks, and how to be fair to Section 8 applicants. This is what you need to know about these areas of fair housing interest:
- Service and Companion Animals
Service animals aren’t pets. Companion animals such as emotional support animals aren’t pets, either. You have to allow them. Service animals are easily identified and come with their own paperwork and set of skills. They are almost always dogs. Companion animals, however, aren’t always easy to identify. They could be any type of animal, even an animal you would never dream of allowing into your property. With companion animals, you’re permitted to ask for documentation from a medical provider, and recent laws require that medical provider to have seen the patient in person and worked with them for a specific period of time.
- Criminal Background Checks
Tenant screening can be tricky when it comes to fair housing. You’re permitted to run a criminal history check when you have permission from the applicant, but you could potentially find yourself in violation of state and local fair housing laws if it has an unjustified discriminatory effect on a protected class. You cannot always control this. So, be careful with criminal background checks. You should run them, but unless a conviction indicates an immediate threat to people or property, be careful with your denial.
- Section 8 Tenants
California fair housing laws do not allow you to refuse an application from a tenant with Section 8 benefits, as long as they meet your qualifying rental criteria. Those housing benefits can be considered their income for the purposes of your rental criteria.
If you have questions about these issues while you’re screening tenants, make sure you reach out to a Los Angeles property manager for clarity and direction. It’s much easier to ask for help before a mistake is made than it is to ask for help once you’ve already put yourself in jeopardy.
Advertising and Marketing LA Properties
What does fair housing have to do with marketing your rental home in Los Angeles?
More than you might imagine.
The words and phrases you use to describe your property, your location, or your idea tenants can be problematic. When you’re posting rental property advertisements online, you should never separate one group of tenants from another.
- Don’t show preferences for one type of tenant or an aversion for another type of tenant.
- Don’t call out types of people who may or may not enjoy living in the property.
- Don’t use language that isn’t’ inclusive.
Instead, celebrate the property features that would appeal to everyone.
Avoid saying your studio apartment would be “great for singles.” Don’t say the property is close to churches or wouldn’t be great for children. Good marketing focuses on your property’s general features, such as large bedrooms, updated kitchens, or fenced yards. Don’t discuss the type of tenant who might appreciate the neighborhood or the building. Don’t say a tenant must be able to go up and down stairs.
You get the idea. As we said; it’s easier to make a fair housing mistake than you think.
Screening Tenants and Fair Housing
Screening requires total objectivity.
This starts with a standard set of rental criteria. When you tell tenants exactly what you’re looking for before they even apply for your home, they can decide whether they’re likely to be approved. Your rental criteria must be documented and available. It could include a minimum credit score or a minimum income. It could say that you won’t consider anyone who has had an eviction in the last 10 years.
Be consistent. Each tenant must be held to the same standards as all the other people applying for your property. When applications come in, make your decisions in accordance with your criteria. Make sure you send out the property information when you deny tenants based on credit (The Fair Credit Reporting Act requires specific language). Don’t give tenants any reason to believe they were denied because of anything outside of their inability to meet your screening criteria.
This is hard. Screening tenants, marketing to tenants, and dealing with tenants and their needs can feel risky, especially when the fair housing laws are so strict.
This is why Los Angeles property management is so beneficial to landlords. We keep you in compliance, and you don’t have to do any of the marketing or screening yourself.
We can help. Contact us at El Camino Property Management, and we will talk about how we keep your property safe from fair housing problems.
Please note this information is deemed reliable, but not guaranteed. Please consult appropriate professionals for specific situations.
