Avoiding Fair Housing Violations During Peak Leasing Season - The Fair Housing Institute, Inc.

Avoiding Fair Housing Violations During Peak Leasing Season

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Peak leasing season, typically spanning from May through August, represents a period of extreme urgency and high volume for property management professionals. This rush, unfortunately, also correlates with a significant spike in potential fair housing claims. The primary cause? When chaos reigns, adherence to documented policies often suffers. This episode dives deep into the crucial steps property managers must take to protect their properties and staff during this high-pressure period.

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Inconsistency is the Number One Vulnerability

Well over half of all reported fair housing complaints relate to discrimination. The number one driver of these claims during peak season is inconsistent screening. When staff are overwhelmed by the sheer number of applicants, they may be tempted to take shortcuts rather than follow documented policies.

A study by the National Fair Housing Alliance found that testers reported differential treatment in approximately 50% of rental inquiries in certain areas. Imagine magnifying this inconsistency when you face 20 applications a day. The core of the Fair Housing Act is equal opportunity. Approving one applicant with a 590 credit score while denying another at 620—perhaps due to a desperate need to fill a unit or a simple personal preference—is a clear violation waiting to happen.

Enforcing Non-Negotiable Screening Criteria

Consistency starts with a strict, consistent procedure for every single applicant.

  • Criminal History: If this is part of your criteria, every applicant must be screened without exception. While past guidance allows for case-by-case exceptions based on mitigating circumstances, the procedure for screening and handling appeals must always remain consistent.
  • Financial Requirements: Criteria such as credit screening, landlord history, and minimum income requirements should be solid and strictly enforced. If an applicant fails to meet the minimum income requirement, they should be denied without exception.
  • Clear Denials: Denial letters must state the specific reason for denial, not a vague “did not meet qualifications standard”.

The moment a manager allows an exception—even for an owner’s friend with bad credit—they have unknowingly created a precedent that must then be applied to every future application.

Mandatory Training for Temporary Staff

Peak season often requires hiring temporary leasing agents to manage the surge of people. These temps may be excellent salespeople, but are they fully aware of the Fair Housing Act and their obligations under the law? Property managers must ensure all staff, including temporary workers, receive thorough training.

Essential Training Must Cover:

Reasonable Accommodations: When applicant numbers spike, so do requests for reasonable accommodations. These mandatory considerations include requests for assistance animals or reserved parking. Untrained staff might dismiss these as an inconvenience or ask inappropriate questions, leading to a classic fair housing violation.

Protected Classes: Staff must know the seven federally protected classes: race, color, national origin, religion, sex (including gender identity and sexual orientation), familial status, and disability.

Familial Status: A staff member who refuses to rent to a family based on the number of children, thinking they are enforcing an occupancy policy, is violating familial status protections.

Key Takeaways: Documentation is Your Defense

What is the “silver bullet” against potential fair housing claims? It is documentation. A paper trail showing that management applied the same policy to every applicant is the critical defense in a potential investigation.

Every step must be documented:

  • Every interaction.
  • Every application.
  • Every denial.
  • Every approved exception.

Finally, be hyper-vigilant about how you answer applicant questions. If a question touches on a protected class (e.g., “Do you have a lot of families with young kids here?”), the response must be neutral and unrelated to any protected class. A safe, broad response is: “We rent to anyone who meets our rental criteria in accordance with the Fair Housing Law”. Keep it neutral! Never offer subjective opinions or information about the protected classes of current residents.

Consistency is always the best defense.

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