Key Takeaways
- California landlords must comply with the Fair Housing Act, avoiding discrimination based on protected classes such as race, disability, sex, or familial status.
- Common violations include false availability claims, steering tenants, unequal fees, and retaliation, all of which can carry severe legal and financial consequences.
- Landlords can reduce risk by using standardized tenant screening, fair advertising, reasonable accommodations, and professional property management support.
As a landlord in California, one of your legal responsibilities is to be fair to residents, regardless of certain protected classes. Some examples of the protected classes are: race, color, disability, sex, and nationality.
Before you begin renting out your property, it is important that you familiarize yourself with the state’s antidiscrimination laws to protect yourself from potential legal issues.
In this blog, Uplift Property Management will walk you through important basics of the Fair Housing Act in California. Including what the Fair Housing Act is, when it was enacted, common violations, exceptions, and how to stay compliant.
What is the Fair Housing Act?
The Fair Housing Act was established in 1968 as part of the Civil Rights Act. The enforcement of the act was delegated to the U.S. Department of Housing and Urban Development (HUD).
The Fair Housing Act was established to stop discrimination in most housing-related matters, including the buying, selling, and renting of homes, based on some protected classes. At the time of its signing into law, it only covered four protected classes. These were: race, color, religion, and nationality.
The act was then later amended to include further protections: sex, disability, and familial status.
The state of California, similar to some others, also passed laws to extend further protections. These include: immigration status, gender identity, mental disability, citizenship status, ancestry, marital status, primary language, and source of income.
Common Violations of the Fair Housing Act
Violations of the Fair Housing Act in California can take many forms, and landlords need to be aware of behaviors that are considered discriminatory.
False Availability Claims
One violation of the Fair Housing Act occurs when a landlord falsely claims a rental unit is no longer available after meeting a tenant of a particular race, only to lease the property to someone of a “preferred” background. This type of deception is discriminatory and unlawful.
Steering Tenants
Directing tenants to certain neighborhoods based on their race or ethnicity—known as steering—is another form of discrimination. This practice restricts freedom of choice and reinforces segregation, both of which are illegal under fair housing laws.
Discriminatory Rental Listings
Landlords must also be mindful of their advertising. Stating a preference for tenants of a particular race, such as including phrases like “Suitable for Blacks,” is a blatant violation because it excludes individuals of other backgrounds, including Caucasians, Hispanics, and Latinos.
Unequal Fees and Deposits
Charging higher rent, deposits, or application fees to tenants who belong to protected classes is another way landlords can violate the Fair Housing Act. All tenants must be treated equally in financial arrangements.
Discrimination Against Disabilities
Refusing to rent to someone based on a physical or mental disability is strictly prohibited. Equal access to housing is a fundamental right, and landlords who deny housing on this basis risk serious legal consequences.
Unequal Rule Enforcement
Applying lease rules more harshly to tenants of certain protected classes while being lenient with others is another form of discrimination. Fair and equal enforcement of policies is required by California law.
Retaliation Against Tenants
Finally, landlords cannot retaliate against tenants who exercise their legal rights, such as joining a tenants’ union or filing a complaint. Evictions, rent increases, or denial of services in response to tenant actions are all considered illegal retaliation.
Exceptions to the Fair Housing Act
There are a few limited exceptions when it comes to the Fair Housing Act in California. However, please note that these exceptions are narrowly construed, and discriminatory advertising is never an exception.
Small Owner Exceptions
The Fair Housing Act allows limited exceptions for certain small-scale rental situations. For example, owners who live in a dwelling with no more than four units may rent out the other units without violating the law.
Similarly, a single-family home rented by the owner without the use of a property manager or real estate agent may qualify as an exception, provided the owner does not hold more than three such homes at one time.
Private Clubs and Religious Organizations
Housing operated by private clubs or religious organizations can also be exempt from some provisions of the Act. However, these entities must ensure that membership and rental opportunities are not restricted based on any protected class.
Discriminatory practices in membership or housing decisions are still prohibited.
Senior Housing Communities
Communities designated for older adults may lawfully consider familial status in tenant selection. Typically, these communities must meet strict requirements, such as being intended solely for residents aged 62 or older. Compliance with these regulations is essential to maintain the exemption.
How Can Landlords Avoid Potential Discrimination Claims?
Violating the Fair Housing Act in California, whether intentionally or not, can have severe financial and legal implications. These can include civil fines, compensatory damages, and court and attorney fees.
Such penalties can obviously have a significant impact on your bottom line. Not to mention the impact on your reputation. To avoid such issues, aim to stay compliant with the Fair Housing Act and other tenets of state law. The following are some things you can do to ensure compliance with the act.
Standardized Screening and Compliance
Landlords can reduce the risk of discrimination claims by implementing a clear, standardized tenant screening process. Consistent application of tenant criteria ensures that all applicants are treated fairly, and prevents potential legal issues.
Advertising and Accommodations
Rental listings should never include preferences or limitations related to protected classes. Providing reasonable accommodations for tenants with disabilities is required, and landlords must avoid asking questions about protected characteristics during the application process.
Working with Property Management
Partnering with a professional property manager can help landlords stay compliant with the Fair Housing Act.
Property managers are well-versed in legal requirements, ensuring consistent tenant screening, fair rule enforcement, and proper handling of security deposits, maintenance, rent collection, and legal matters.
This support reduces liability and helps protect both the landlord and tenants.
Bottom Line
Your journey to successful landlording begins with a proper understanding of your legal responsibilities under state and local landlord-tenant laws. When it comes to the Fair Housing Act, ensure you understand all its provisions and enforce it to the letter.
Uplift Property Management can help with the management of your rental property. We can handle everything from advertising, to screening, to rent collection, and everything in between. Contact us today to learn more.
