The property rental business can be both profitable and rewarding. But either of those hoped-for scenarios will only become a reality for the well-informed landlord. Being fully educated on the laws that govern the rental property industry and the rights of tenants is the first step to success in this business. Step two will be a plan for keeping abreast of changing regulations in each of the areas where you own rental property. This firm foundation of information will protect both you and your property and help you stay afloat in the world of rental property and management.  

 Let’s look at these major federal laws landlords and property managers must know and understand.  

Fair Housing Act 

Birthed during the 1960s, the Fair Housing Act is undeniably a must-know and understand for landlords. As noted by the U.S. Department of Housing and Urban Development, “Fair Housing Act protects people from discrimination when they are renting or buying a home, getting a mortgage, seeking housing assistance, or engaging in other housing-related activities. Additional protections apply to federally-assisted housing.”   

This act prohibits discrimination in housing based on race, color, national origin, religion, sex, familial status, and disability, extending beyond the actual lease process to prevent landlords from marketing their properties to specific groups of people.  

The Fair Credit Reporting Act:  

It’s routine and wise for a landlord to screen potential tenants with a complete criminal history background check and verify that they have a good credit score. This act requires a landlord to get an applicant’s permission before running a credit report and provide the tenant with the credit reporting agency information. It also dictates that the landlord must notify the tenant the reason why they have been rejected if a tenant is denied based on the credit report received.   

 Eviction rules and procedures* 

While the Fair Housing Act and the Fair Credit Reporting Act are federally mandated laws, many guidelines applying to tenants’ rights are under the states’ jurisdiction. The rules, procedures, and processes surrounding eviction fall under that category.  

In general, a landlord cannot evict a tenant without cause. Most states have very specific guidelines for how and when a landlord can legally evict a tenant. For instance, in Arizona, under the Arizona Residential Landlord and Tenant Act, landlords can evict tenants for a handful of reasons, including— 

• • • Not paying the rent 
    • Violation of the lease  
    • Committing a crime  

Before the landlord can evict for any of these reasons, the appropriate written notice must be provided, following specific correspondence timelines for each legal ground for eviction. Further guidelines on proceeding with the eviction are detailed in the Arizona Residential Landlord and Tenant Act or similar legislation for each state.  

State laws might also apply to how deposits are accepted and handled. For example, some states have placed a cap on the amount of a deposit and established guidelines for using and holding rental unit deposits.  

In addition to federal and state laws, some communities have local tenant-landlord laws. It is the property owner’s responsibility to be aware of and follow the law at every level in each state/community where they own rental property.  

Protect yourself and your property by adhering to the property rental laws at every level. 

 *In May, the U. S. District Court for the District of Columbia granted a summary judgment, holding that the CDC lacked statutory authority to impose its COVID eviction moratorium. Alabama Assn. of Realtors v. Department of Health and Human Servs., 2021 WL 1779282, *10 (May 5, 2021). The court stayed its order pending appeal. On August 26, 2021, the United States Supreme Court vacated that stay. This means the CDC moratorium that temporarily prevented evictions is no longer in effect.  

 About Rentals America 

Rentals America provides full-service property management for residential rental properties. Our team is completely dedicated to property management and we’re here to help landlords navigate the rental market.