Fair housing is not a sexy topic for real estate investors.
Personally, I prefer to talk about return on investment and investment strategies, but alas, like all things in life – the right to create financial freedom with real estate comes with some responsibilities. Chief among those is compliance with Federal, State and Local fair housing laws.
Our discussion must include coverage of the “silly season” which I define as a phase of life where rational behavior is countered and overcome with irrational actions based on vendetta’s or out-right childishness.
With that said, use these tips to ensure high speed wealth accumulation (now that IS sexy):
1. Get Educated on the Basics
This area is not overly complicated but important to handle before you jump into the real estate game. First a question to give you a head start?
Question: Can I rent to only single tenants?
It surprised me when I first learned of the fair housing law scheme but that is NOT allowed. The Fair Housing Act also recognizes other protected classes:
- National Origin/Ethnicity/Ancestry
- Familial Status (having children under the age of 18 in the home)
Note: While omitted from the current Federal law, sexual orientation is protected in various jurisdictions.
2. Create a Written Policy that you Follow and Review Annually
I suggest even though you may only plan on one rental property, including a written policy that is included in all your applications and collateral material. Lets face it some people are strait whacked. It just takes one weirdo with an axe to grind to make your life miserable. If you document your policy and have signatures that show said wacko acknowledge you follow fair housing laws will go along way to shutting down the silly season.
3. Create a Record Keeping System
This one is my Achilles heal. …read more