The Fair Housing Act is also known as Title VIII of the Civil Rights Act of 1968. This act prohibits discrimination in the sale, rental, lease, or financing for real property based on race, color, religion, sex, or national origin. The Act was amended in 1988 to prohibit discrimination based on disability or familial status (presence of children under age 18 or pregnant women). Enforcement of this act is handled by the Department of Housing and Urban Development (HUD) and the Department of Justice.

When a landlord receives an application from a prospective tenant, the landlord can deny that application. If the reason the landlord denies the application is illegal then this is discrimination. The applicant can file a discrimination charge and possibly win a lawsuit against the landlord.

The Fair Housing Act is a federal law. In addition the federal law, some states have added additional protection to certain classes of individuals. These are “protected” classes that you cannot discriminate against.

The best advice for landlords is to never reject an applicant for any of these reasons: sex, race, religion, color, marital status, national origin, age, sexual orientation, source of income, or mental or physical disability. Additionally do not reject any applicant that is part of a “protected” class in your state.

If you hire a property manager, you may be liable for their actions if they discriminate against an applicant. The landlord is responsible for properly training everyone that works for them or on their behalf in processing applications. Make sure that everyone involved in the process of renting your properties are aware of their obligations under federal and state law.

Investing in real estate can result in great fortunes. Don’t risk it all by violating federal law when trying to rent your property.

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