Becoming a landlord is more than just purchasing a rental property and collecting rent each month. There are important laws and regulations you must comply with as well.
One of the most important laws you must abide by as a landlord is the Fair Housing Act (FHA), which protects renters and tenants from discrimination based on certain characteristics.
To ensure you are conducting your Los Angeles rental business compliantly and avoiding discriminating against potential tenants, we are going over the protected classes and what types of discrimination are illegal for landlords in LA.
Legally Protected Characteristics from Discrimination in Real Estate
In the state of California, the California Civil Rights Department is responsible for investigating discrimination and upholding the FHA. The FHA was first enacted in 1968 and covered only seven classes: race, color, religion, sex, familial status, disability, and national origin.
Since then, California has expanded these protected classes from discrimination when it comes to renting or buying property.
These protected classes include:
- Race – Landlords may not refuse a rental or change terms and conditions based on a tenant’s race.
- Color – Landlords may not discriminate based on the color of a tenant’s skin.
- Ancestry – Tenants are protected from discrimination against their ancestry and where their family is from.
- Religion – Landlords may not specify if they prefer to rent to a tenant of a particular religion.
- National Origin – Tenants may not face discrimination based on their citizenship or where they were born.
- Immigration Status – Landlords may not inquire about a tenant’s immigration status if they are not US citizens.
- Primary Language – Tenants whose primary language is something other than English may not be discriminated against.
- Sex or Gender – Landlords may not discriminate based on sex or how a tenant identifies gender.
- Sexual Orientation – Regardless of a tenant’s sexual orientation, a landlord may not refuse to rent to them or change the terms of the lease.
- Source of Income – Landlords may not discriminate based on the source of the tenant’s income, such as if they receive assistance from Section 8.
- Marital Status – Tenants who are single or married may not be refused a rental based on their marital status.
- Veteran Status – Whether a tenant is a veteran or not should not impact a landlord’s decision to rent to them.
- Familial Status – Tenants with children or who are pregnant may not be refused a rental based on their familial status.
- Disability – Tenants with a disability may not be refused a rental and must be allowed to make reasonable modifications to the property at their expense to accommodate their disability.
- Age – Landlords may not discriminate against a tenant’s age, but they may not rent to a minor without a parent or guardian’s signed consent.
What Does Discrimination Look Like When Renting a Property?
Discrimination can rear its ugly head in various situations when renting a property. Knowing what discrimination looks like in certain situations can help you understand what it is and how to avoid it as a Los Angeles landlord.
Situation #1: A landlord is searching for a new tenant to fill their vacant rental. However, when a tenant expresses interest, a landlord refuses to rent to them or tells them that the rental is no longer available because they do not speak English and are not a US citizen. This is discrimination based on national origin, immigration status, and primary language.
Situation #2: A tenant with a disability asks their landlord for permission to make slight modifications to the rental property. They would like to pay for a ramp to help them easily enter the front door, but the landlord refuses and does not allow the modification to be made. This is discrimination based on disability.
Situation #3: A family with two young children has moved into an apartment complex with a garden and a communal pool. The landlord posts a sign saying that children may not use the communal pool at any time. This is discrimination based on familial status.
Situation #4: Two potential tenants are interested in renting an apartment. One of the tenants is a single international student, while the other is a couple that just got married. The landlord offers the international student the apartment for $2,500 per month, while the newly married couple is offered $2,000 per month. This is discrimination based on national origin, immigration status, and marital status.
The most common situation where discrimination happens is during the tenant screening process.
While it is important to check a potential tenant’s background to ensure they will respect your property and pay rent on time, certain factors, such as the source of their income, marital status, sex or gender, and where they are from, should not be taken into consideration.
What Happens if You Violate Discrimination Laws in California?
If a tenant or potential tenant feels that they have been discriminated against when renting a property in California, they can file a complaint with the CRD.
There is an investigation process, and if the landlord is found guilty of discrimination, they can face a hefty penalty of tens of thousands of dollars based on the severity of the situation. Along with paying a penalty, landlords could also be responsible for owing the tenant compensation and covering the costs of relocating to a new apartment.
If found guilty of discrimination on multiple occasions, landlords could also risk losing their rental license for the property and may even face criminal charges.
Discrimination in the rental industry is not something to be taken lightly!
Comply with All California Rental Laws with Lotus Property Services
Keeping up with all of the rental laws and regulations in California, especially getting to know and understand discrimination laws, is an essential responsibility of landlords.
That’s where Lotus Property Services can help! When you work with a professional and experienced property manager, we guarantee that your rental property and business are 100% compliant with California laws.
Don’t risk violating discrimination laws or real estate regulations simply because you were unaware they existed. Lotus Property Services will handle all tenant screening processes and ensure all rules are followed.
If you enjoyed this article, make sure to read Things to Know Before Becoming a Landlord in Los Angeles next!