Tenant screening is one of the most critical processes while leasing a property wherein you need to adhere to all legal guidelines that protect tenants’ rights, most importantly, the Federal Fair Housing Laws.
The Federal Fair Housing Laws are based on the Fair Housing Act (FHA) of 1968. Originating from the Civil Rights Act of 1866, it was signed into law by US President Lyndon B. Johnson and aims at prohibiting discrimination in the sale, financing, and renting of a house based on race, color, religion, national origin, sex, disability, or familial status.
Fair Housing Laws on Discrimination
The landlords of Philadelphia must follow Fair Housing laws, which prohibit discrimination for the protected classes. The protected classes as identified by the FHA are race, color, religion, national origin, sex, disability, and familial status. It intends to protect the rights of protected classes and therefore prohibits the landlords from discriminating against in the following ways.
- Advertisements
The landlords are prohibited from publishing advertisements that promote preference or permission for and against any protected class. For example, you must avoid using headlines like “White American’s Society,” which promotes racism and implies that non-white or non-Americans are not welcome.
- Transparency
You need to be transparent and truthful about the vacancy of the property. Every potential tenant has the right to view the rental home and see through the process.
- Guidelines
You are prohibited from setting separate guidelines for any selected class. The guidelines must be the same for all and should not be based on prejudice against any protected class.
- Rental Terms
You must draft the same terms for all the tenants and not differentiate for or against the protected classes. All tenants must be treated equally.
- Cancellation of Lease
You are prohibited from canceling the lease or evicting a renter for any discriminatory reasons.
The Mrs. Murphy Exemptions
Mrs. Murphy is just a metaphor used for an imaginary landlord by the FHA. The exemptions from the federal rules in particular cases are known as Mrs. Murphy Exemptions and are different for every state.
It applies to the owners who are also the occupants of the Philadelphia rental property. The exemption for Pennsylvania, hence for Philadelphia, is for the “personal residences,” including any building or structures incorporating living quarters for two or less than two individuals, groups, or families that live independently of one another.
Regulations on Maximum Occupancy Restrictions
The maximum occupancy restrictions were initiated as discriminatory behavior was based on the (familial status) number of people in a family. The law states that children below the age of 1 will not be considered in the total number of occupants for a Philadelphia rental.
The rules for maximum occupancy are based on the Building Officials Administration Code (BOAC), which implies that there should be 150 sq. ft. space available for the first person and 100 sq. ft. space available for every additional occupant.
FCRA Guidelines for Tenant Screening
Federal Trade Commission’s Fair Credit Reporting Act (FCRA) guidelines pertain to the financial background check during the tenant screening process. In order to ensure a fair screening, you must:
- Possess non-discriminatory reasons like lease renewal or application.
- Have the written permission of the applicant or the tenant.
- Inform the tenant if you plan on taking adverse action against them based on the credit report. The adverse action may be the denial of the application, necessitating a co-signer, requiring an unusually large amount for deposit, or raising the cost of the rent.
HUD’s Guidelines Regarding Criminal Background Check
Individuals having a criminal background are not one of the protected classes. They are rejected by many landlords resulting in unintentional discrimination. It also causes a disparate impact on the protected classes considering the unbalanced incarceration rate among different groups.
To tackle this, the HUD Guidelines encourage the assessment of the “nature and severity of an individual’s conviction” and the “amount of time that has passed” while screening the criminal history.
Complying with the Fair Housing Laws and other guidelines is essential while screening tenants in Philadelphia. You can also consult a reliable management company like TCS Management to ensure that you carry out tenant screenings in strict accordance with the law. For more information, contact us at TCS Management.
