More residents in a rental unit can mean increases in noise, amenity usage, and wear and tear. Overcrowding of a living space might even result in damage, safety hazards, or filth that attracts undesirable pests. For landlords looking to avoid such problems, setting occupancy limits for their rental property seems to be an easy solution.
But when fair housing laws and potential changes in a tenant’s situation are considered, occupancy limits become less simple. While it’s important to avoid overcrowding for health and safety purposes, it’s also critical for families with children and multi-generational households to have an equal chance to find rental space. How should a landlord find the right balance?
The most basic guidelines, stemming from sources like the Keating Memorandum published in 1991, provide a general consensus that allowing two people per bedroom is reasonable under the Fair Housing Act. But the analysis doesn’t end there. Occupancy limits should leave room for flexibility to avoid discrimination and take into account the full picture of the unit’s capacity and tenant’s circumstances.
Here are some additional factors to consider:
State and Local Laws. Some local regulations touch on occupancy limits for rental properties under their jurisdiction. Familiarize yourself with any state laws or city ordinances that might apply to your unit to stay in compliance.
Unit Size and Layout. The higher the square footage of your rental unit, the more creative tenants can be in finding a place for everyone to sleep. Large bedrooms have the potential to house more than two people, and a room one tenant may consider an office might be used as an additional bedroom by another family.
Children vs Adults. The number and age of children versus adults in a household can significantly impact how the space is used. For example, a bedroom that’s too small for three adults might comfortably accommodate two parents and an infant.
Building Capacity. Systems on a property, such as sewers and septic tanks, need to be able to handle the number of people using them. Applicable health, safety, or fire codes may provide additional limitations on the number of occupants that are appropriate for a particular building or unit.
Once a landlord’s occupancy guidelines are set, they should be communicated and applied fairly to all tenants. The lease agreement or other rental policies should also specify how long visitors can stay on the property and guidelines for adding a new tenant to the lease. When in doubt, consult local or state housing authorities or an attorney to make sure your policies are non-discriminatory and compliant with federal, state, and local regulations.
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