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The Fair Housing Act:
What Landlords Must Know!

3 min watch | August 21, 2024

Fair Housing Act Webinar

Confused about the Fair Housing Act? Join rental property experts Samantha and Krista as they break down this critical law in a friendly and easy-to-understand conversation.

They’ll cover:

  • Protected Classes: Who is protected and why discrimination on these grounds is illegal.
  • Real-Life Scenarios: Examples of how the Fair Housing Act might impact your decisions as a landlord.
  • Reasonable Accommodations: Learn how to handle requests from tenants with disabilities.
  • Penalties: Discover what can happen if you violate the Fair Housing Act.
  • FAQs & Resources: Get answers to common questions and find helpful links.

Whether you’re a new landlord or a seasoned pro, this video will help you ensure you’re operating within the law and avoiding costly mistakes.

Presenters

Krista Reuther
Krista Reuther
Senior Education Content Manager
Samantha Yadav
Samantha Yadav

Key Takeaways:

  • Fair Housing Act and Protected Classes: The Fair Housing Act, established in 1968, protects renters from discrimination based on seven federally protected classes. Landlords should also be aware of additional protected classes that may exist at the state or local level.
  • Misconceptions about Protected Classes: Some groups, such as military members, are often mistakenly believed to be protected classes under the Fair Housing Act, but they are not included in the seven federally protected classes.
  • Filing a Discrimination Complaint: Renters who believe they have been discriminated against based on their protected class status can file a complaint with their local HUD office. HUD may then send “secret shoppers” to evaluate the landlord’s process and treatment of different protected classes.
  • Landlord Responsibilities and Education: Landlords should thoroughly understand the Fair Housing Act and implement non-discriminatory practices. TurboTenant offers a course, “Fair Housing for Landlords,” to help landlords understand their obligations and avoid discrimination.
  • Exemptions to the Fair Housing Act: While most landlords must follow the Fair Housing Act, there are some specific exemptions, such as owner-occupied rentals with four or fewer units, single-family homes sold without a real estate agent, and properties owned by religious or private organizations that limit occupancy to their members. However, these exemptions apply to a small percentage of landlords.
  • Consequences of Violating the Fair Housing Act: Landlords should be motivated to comply with the Fair Housing Act not only for ethical reasons but also to avoid costly penalties. The first offense can cost up to $16,000, with subsequent offenses resulting in even higher fines.

Transcript ▼

Samantha Yadav:

I’m Samantha from TurboTenant’s Education and Community Team, and today I’m chatting with Krista about the Fair Housing Act.

So Krista, the Fair Housing Act was designed to protect renters from discrimination. What sort of people are protected in the Fair Housing Act?

Krista Reuther:

There are seven protected classes, and these were established in 1968 by Lyndon B. Johnson. Okay, perfect.

Samantha Yadav:

And these are federally protected classes. So no matter what state I am, no matter where I’m located, those are protected everywhere. Are there other protected classes that landlords should be aware of?

Krista Reuther:

Yes, but not on a federal level. So various states and localities have their own protected classes. I highly recommend familiarizing yourself with your local laws to make sure that you’re following everything to a T. Are there other groups of people that are protected?

Yes, absolutely. In fact, one class that frequently gets mistaken as a protected class is the military, but they’re not listed as one of the seven protected classes of the Fair Housing Act.

Samantha Yadav:

So if I’m a renter and I’d like to file a complaint, I feel that I’m in one of these protected classes and I’ve been discriminated against. Where can I go?

Krista Reuther:

You would go to your local HUD office, they’re going to take down your complaint, and then they’re probably going to send basically secret shoppers out to the landlord in question and evaluate their process with two different people in different protected classes.

Samantha Yadav:

Being a secret shop, if I’m the landlord, I don’t know that they’re shoppers? Not at all.

Krista Reuther:

The intention with this process is to see how you treat renters without knowing anything other than their protected class status.

Samantha Yadav:

What can I do as a landlord to make sure that I’m not discriminating against these protected classes?

Krista Reuther:

First, make sure you understand the Fair Housing Act through and through. Then implement it, right? Just make sure that you are not discriminating against people and be very mindful of what qualifies as discrimination. If you have any questions about that, TurboTenet has a course, Fair Housing for Landlords that goes through everything you need to know on a broad scope so that you aren’t caught unaware.

Samantha Yadav:

A lot of landlords are always asking how to get around the Fair Housing Act. From my understanding, most landlords have to follow it, but there are some exemptions. Is that right? True.

Krista Reuther:

These exemptions are very, very specific situations. If you have an owner-occupied rental with four or fewer units, if you bought or sold a single-family home without the use of a real estate agent at all, or if you have property that is owned by a religious or private organization and you limit occupancy to the specific members of that organization, then you can avoid the Fair Housing Act. However, by and large, 90% of landlords are going to be required to follow the Fair Housing Act, so you might as well understand it thoroughly and follow the rules.

Samantha Yadav:

Aside from the ethics involved, why should a landlord care about the Fair Housing Act?

Krista Reuther:

Well, because not following the Fair Housing Act can cost you a pretty penny. In fact, it costs up to $16,000 for your very first offense, and that price tag only increases with every subsequent offense. So better to just not make a mistake and treat everybody the same way as they move through the process with you.

Top questions asked by the audience:

What groups of people are protected under the Fair Housing Act?

There are seven protected classes established in 1968 by Lyndon B. Johnson.

These are federally protected classes, so they're protected everywhere in the U.S. Are there other protected classes that landlords should know about?

Yes, various states and localities have their own protected classes. Familiarize yourself with your local laws to ensure you’re compliant.

Are there any other groups that are often mistaken as protected under the Fair Housing Act?

Yes, the military is often mistaken as a protected class, but it is not one of the seven protected classes under the Fair Housing Act.

If I'm a renter and I believe I've been discriminated against based on a protected class, where can I file a complaint?

You can go to your local HUD office. They will take your complaint and may send secret shoppers to the landlord in question to evaluate their process with people from different protected classes.

If I'm a landlord, how can I avoid discriminating against protected classes?

First, thoroughly understand the Fair Housing Act. Implement it by ensuring you do not discriminate against anyone. Be mindful of what qualifies as discrimination. TurboTenant offers a course called “Fair Housing for Landlords” that covers everything you need to know.

Are there exemptions to the Fair Housing Act for some landlords?

Yes, there are specific exemptions. You might be exempt if you have an owner-occupied rental with four or fewer units, if you bought or sold a single-family home without using a real estate agent, or if your property is owned by a religious or private organization that limits occupancy to its members. However, most landlords (about 90%) must follow the Fair Housing Act.

Why should a landlord care about following the Fair Housing Act?

Not following the Fair Housing Act can be costly. The first offense can cost up to $16,000, and the fines increase with each subsequent offense. It’s better to avoid mistakes and treat everyone the same throughout the rental process.

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