Understanding Fair Housing Laws: A Guide for Property Managers

13 June 2025

Fair housing laws—ever heard of them? If you're a property manager, you absolutely must understand these regulations. They’re not just legal mumbo-jumbo; they shape the way you interact with tenants, market properties, and handle applications.

So, what’s the big deal? Well, violating these laws can result in hefty fines, lawsuits, and a bad reputation. But don't worry—I’ve got you covered. This guide will break it all down for you in a simple and engaging way.

What Are Fair Housing Laws?

Fair housing laws exist to prevent discrimination in housing. They protect tenants from being treated unfairly based on certain characteristics.

At the heart of it all is the Fair Housing Act (FHA), a federal law enacted in 1968. This law prohibits discrimination in housing-related activities, including renting, selling, and financing homes. But that’s not the only law you need to know about—many states and local governments have additional protections too.

So, what does this mean for you as a property manager? It means you must ensure that everyone gets an equal shot at renting a property, no matter who they are.

Who Is Protected Under Fair Housing Laws?

The FHA lays out seven protected classes:

1. Race – You can’t deny housing based on someone’s race or skin color.
2. Color – Similar to race, this protects individuals from color-based discrimination.
3. Religion – You can’t favor or reject tenants based on their religious beliefs.
4. Sex – This includes gender discrimination and now extends to sexual orientation and gender identity.
5. National Origin – You can’t refuse to rent to someone because of their ethnicity or the country they (or their ancestors) come from.
6. Family Status – This protects families with children under 18, including pregnant women.
7. Disability – Individuals with physical or mental disabilities have the right to reasonable accommodations.

State and Local Laws May Offer More Protections

Some states and cities add extra layers of protection. For example, some areas prohibit discrimination based on income source (like housing vouchers), political affiliation, or even criminal history. Always check your specific state and local regulations!

Common Violations Property Managers Must Avoid

Knowing the law is great, but it’s even more critical to avoid mistakes that can land you in hot water. Here are some of the most common fair housing violations:

1. Discriminatory Advertising

Ever seen a rental ad that says “No kids allowed” or “Perfect for a single professional”? That’s a big no-no. Any language that suggests preference or discouragement based on protected classes is considered discriminatory.

✅ How to Avoid It: Keep your ads neutral. Instead of “Great for young professionals,” say “Spacious apartment in a lively neighborhood.”

2. Unequal Application Processes

If you’re asking some tenants for extra paperwork but not others, that could be discrimination. The same applies to inconsistent income or credit score requirements.

✅ How to Avoid It: Have a standardized screening process. Every applicant should go through the same steps, with the same criteria applied.

3. Different Terms and Conditions

Charging higher security deposits or rent based on a tenant’s ethnicity or family status? That’s illegal. So is limiting access to building amenities based on someone’s religion or sex.

✅ How to Avoid It: Treat everyone equally. If you allow pets for some tenants, allow them for all (or set a uniform policy).

4. Failure to Provide Reasonable Accommodations

If a tenant with a disability requests a reasonable accommodation—like a wheelchair ramp or a service animal—you are obligated to comply unless it creates an undue financial burden.

✅ How to Avoid It: Know what qualifies as a reasonable accommodation and be prepared to handle such requests fairly.

5. Steering Applicants

Ever been tempted to suggest that a rental unit might be “more suitable” for a certain type of tenant? Be careful—that’s called steering, and it’s discriminatory.

✅ How to Avoid It: Let tenants decide where they want to live without pushing them toward or away from specific units or neighborhoods.

Best Practices for Staying Compliant

Now that you know what not to do, let's talk about how to stay on the right side of the law.

1. Educate Yourself and Your Staff

You can’t follow the rules if you don’t know them. Regular training on fair housing laws is crucial for property managers and leasing agents.

2. Create a Fair Housing Policy

Put your commitment to fair housing in writing. Document your policies and ensure all team members are on the same page.

3. Standardize Your Screening Process

Use the same checklist for every applicant. Set fixed criteria for income, credit score, background checks, and rental history.

4. Keep Records of All Transactions

If a dispute arises, documentation can be your best defense. Keep copies of applications, correspondence, and decisions for at least a few years.

5. Review Your Advertising

Before posting rental ads, double-check the wording to make sure it’s inclusive and not unintentionally discriminatory.

6. Be Open to Accommodation Requests

If a disabled tenant requests a modification, review it carefully and determine if it's reasonable. Ignoring or outright rejecting requests without considering them can get you into trouble.

7. Avoid Personal or Off-the-Cuff Decisions

It’s easy to go with your gut when selecting tenants, but personal biases (even unintentional ones) can lead to discrimination claims. Stick to documented criteria instead.

What Happens If You Violate Fair Housing Laws?

Let’s be real—violating fair housing laws is not something you want to deal with. If a tenant files a complaint, you could face:

- Fines: Civil penalties can range from a few thousand to tens of thousands of dollars.
- Lawsuits: You could be sued for discrimination, leading to costly legal battles.
- Bad Reputation: Complaints can go public, damaging your credibility as a property manager.

If a claim is made against you, the U.S. Department of Housing and Urban Development (HUD) or local housing authorities will investigate. If they find you guilty, expect some serious consequences.

Conclusion

Fair housing laws aren’t just legal red tape—they exist to ensure that everyone has an equal opportunity to find housing. As a property manager, knowing and following these laws isn’t just about avoiding fines and lawsuits; it’s about fostering an inclusive and fair rental market.

By educating yourself, standardizing your processes, and being mindful of potential discrimination (even unintentional), you can stay compliant and build a strong, ethical rental business.

So, when in doubt, ask yourself: "Am I treating every prospective tenant fairly and equally?" If the answer is yes, you’re on the right track!