Archive for August, 2011

Lead-Based Paint Disclosure Penalty Increased

August, 2011

Lead-Based Paint Disclosure Penalty Increased

In a final rule published in the Federal Register on June 22, 2011, the Department of Housing and Urban Development (HUD) raised the maximum civil money penalty for failure to disclose lead-based paint hazards. The increase adjusted for inflation as required by the Debt Collection Improvement Act of 1996. The rule increases the maximum penalty from $11,000 (in effect since 1996) to $16,000 effective July 22, 2011.

Considering this recent 45.5 percent increase in maximum penalty, it is worthwhile to review the law which has been in effect since 1996

Under federal law owners and sellers (and their agents) of single-family and multi-unit housing constructed prior to 1978 are required to follow certain disclosure procedures when leasing or selling. The HUD and the U.S. Environmental Protection Agency (EPA) jointly adopted lead-based paint disclosure regulations to implement the Federal Residential Lead-Based Paint Hazard Reduction Act.

The Residential Lead-Based Paint Hazard Reduction Act, commonly known as Title X, was enacted in the U.S. in 1992. EPA regulations implementing Title X as to rental property became effective September 6, 1996 for owners of rental housing containing more than four (4) units. The effective date was December 6, 1996 for owners of housing containing one to four (4) units (including single family homes).

The following types of housing are not covered by Title X:

  • Housing certified as lead-free by an inspector certified under a federal certification program,
  • Zero-bedroom (efficiencies, studios, dormitories, and single room occupancy units),
  • Short-term vacation rentals, non-renewable leases of 100 days or less,
  • A single room rented in a residential dwelling,
  • Housing designed for seniors or for persons with disabilities, unless children under the age of 6 are regularly present,
  • Foreclosure sales, and
  • Lease renewals when the landlord has previously provided full disclosure.

Before a tenant or buyer becomes obligated under a lease agreement or a sale contract, the owner or owner’s agent must provide the buyer or tenant with the pamphlet prepared by the EPA titled “Protect Your Family from Lead in Your Home” and disclose to the prospective tenant or buyer and to any leasing or selling agent the presence of any known lead-based paint and/or lead-based paint hazards in the property.

Even if the owner didn’t cause or know about lead-based paint or pipes in a rental building, he/she has an obligation to give potential buyers and tenants notice that such hazards might exist.

The owner must also provide the leasing or selling agent and the buyer or tenant any available records or reports related to lead-based paint and/or lead-based paint hazards in the property.

Every sale contract or lease agreement must include as a separate page an EPA-approved disclosure form containing a specified lead warning statement and required acknowledgments. The form must be signed by all of the parties to the transaction, including the owner’s selling or leasing agent. Sellers, landlords, and their agents must retain copies of the signed forms for 3 years from the closing date of sale or the commencement date of the lease.

Before a buyer becomes obligated under a sale contract the seller must give the buyer a ten (10) day period to conduct a lead-based paint inspection or risk assessment (unless the parties have agreed in writing to a longer or shorter period or to waive such inspection rights).

The EPA and HUD have authority under the regulations to impose monetary penalties – now up to $16,000 – on any landlord, seller, or agent who knowingly violates the lead-based paint disclosure requirements. A violator may also be may be sued for an amount equal to 3 times the actual damages suffered by the tenant or the buyer and may also be subject to criminal fines and imprisonment.

Landlords and sellers have no obligation under the federal regulations to inspect their properties for lead-based paint or to remove lead-based paint or abate any lead-based hazards that may exist on their properties. That is, the federal regulations impose only a duty to disclose known lead-based paint facts.

In addition to the federal regulations, some states and cities also have their own lead paint laws, usually more stringent than the federal, so investors in pre-1978 residential income property should be sure to understand the lead paint laws of the state in which they invest.

While violations of the disclosure requirements expose an owner to potential civil and criminal penalties, the fact that a buyer discovers that a seller knew of lead-based paint hazards and did not make a disclosure, does not invalidate a sale contract, lease agreement, or property transfer and does not give the buyer or tenant a right of rescission after the sale contract or lease has become effective.

In addition to the disclosure requirements described above, there are a variety of requirements at the federal, state, and local levels involving inspection and abatement of lead-based paint hazards if and when an owner deals with lead-based paint issues at their properties.

There are two specific lead-based paint disclosure issues that a buyer should be concerned with. One is the disclosure to the buyer that is required for the sale. The other is the disclosure required when the seller rented to the current tenants. The latter is important because a buyer may be named in a lawsuit for failure of the seller to have provided proper disclosure to the tenants.

If the form indicates that the seller has had any lead-based paint inspection, testing, or remedial work performed, the buyer should be sure to get copies of the reports and/or certificates. If there are any concerns, the buyer might want to consult with an expert to avoid being stuck with many thousands of dollars worth of required abatement work after close of escrow. Regulations of some jurisdictions do not allow an owner the option of correcting or not correcting problems as do federal regulations.

The buyer will want to ensure that the seller provides copies of executed lead-based paint disclosure forms for all tenants. Without these, the buyer could become legally liable due to violations of the law by the previous owner.

If the seller had not followed the law regarding disclosure for each tenant, the seller should be required to obtain them immediately to provide them to buyer soon after acceptance of the contract. However, the buyer must consider that buying a property for which disclosure was not obtained in accordance with the law prior to tenants moving in is not without possible risks. Tenants who were unaware of the hazard may want to now terminate their leases. Considering the potential penalties and legal risks, a landlord should think carefully before arguing with a tenant who wishes to terminate occupancy because of the issue even if the tenant doesn’t have a right to do so under law.

My Tenant is Breaking a 1-Year Lease agreement….

August, 2011

Some Questions & Answers

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Q1

I received a notice from our HOA saying a tenant had a BBQ in the common area which needed moving. I let the tenant know by phone. He ignored calls and now we have HOA fines. Does Arizona law require me to give tenant written notice?

A1

Whether a written notice is required may primarily depend on what your lease agreement says. State law will usually require that the notice be written if the landlord proceeds with a court action based on the notice unless the tenant acknowledges receiving your messages.

Just as important is the issue of whether the tenant was aware of the rule that was broken. Although most generic agreements don’t cover the HOA issue, for any rental property covered by a HOA the tenant should be provided a copy of the HOA documentation, including Bylaws and Rules/Regulations prior to signing of the lease and the lease agreement should include a clause stating that the tenant has read the documentation, agrees to abide by the terms of the documentation, and will be liable for any penalties assessed against the landlord due to violations by the tenant.

If the tenant has not been provided such documentation, a judge may refuse to penalize a tenant for failure to abide by the terms of that documentation, particularly if there is no proof that he was told of the violation and given the period required by law to correct the problem.

Written notice should always be provided along with proof of mailing or personal service for any matter related to any default on the lease or other issue of importance to the landlord, especially any matters that the landlord may want to pursue in court. Unless personally served, the notice should be sent with a “Certificate of Mailing” which gives the landlord proof of having mailed something to the tenant without the tenant knowing of the proof and refusing delivery, as can be done for “Certified Mail.” Use of both proofs is even better.

Oral notices are difficult to prove in court if the tenant claims to have not received the notice. Oral notices are particularly problematical when a landlord leaves a message on the tenant’s voice mail, as the landlord cannot even prove that the message was sent, let alone was received by the tenant. Mailed notices for which there is proof of sending do not usually require proof of receipt because, whether true or not, the U.S. Mail is considered infallible.

Similarly, emailed notices do not have universal court acceptance. While there are ways to prove an email was sent that might be acceptable to some judges, few judges may assign the same presumption of receipt for a sent email as for a sent piece of U.S. Mail.

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Q2

My tenant is breaking a 1-year lease agreement, moving out 4 months prior to end of lease. What are my legal rights for remaining months on the lease and the security deposit?

A2

In general, absent anything unusual in the lease agreement and absent any indication given to the tenant that you are allowing him/her to leave early, you would have the right to hold the tenant to the terms of the lease agreement. This means that you can charge rent for the remaining term of the lease in addition to any damages.

However, many states require that the landlord make reasonable effort to find a replacement tenant as soon as possible, with the definition of “reasonable” depending on a number of things such as the local rental market, the time required to get the unit ready for marketing related to the condition in which the tenant left the unit, and, if the matter goes to court, the opinion of the judge. You can usually also charge the tenant for a portion of any marketing costs and/or leasing commissions paid, with the charge being adjusted for the period remaining on the tenant’s lease after you have begun collecting rent from a new tenant. If the matter went to court many judges would not allow you to collect rent from both the old and new tenants for the same period of time, although the laws of a few states allow the landlord to do so.

Be sure to provide an accounting of the amount of the security deposit not being returned (=deposit less unpaid rent + damages + other costs) within the time required by the law of your state.

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Q3

Can a landlord ask for a pet deposit in addition to 1-1/2 month’s rent security deposit in NJ?

A3

Although you should read the law yourself, my understanding of NJ law is as follows:

It appears that NJ law allows for pet deposits, but the security deposit, including the pet deposit, cannot exceed one and a half times the monthly rent. Furthermore, if the rent is increased, the most additional security deposit money that a landlord can get in any one year is 10 percent of the current total deposit no matter if the rent is raised by more than 10 percent. Landlords should also understand that the word “deposit” means that the funds are refundable if all conditions of the lease are fulfilled.

Although some are of the opinion that one can get around the maximum deposit allowed by simply calling it a “pet fee” rather than a “pet deposit” and clearly state that it is a non-fundable fee, I doubt that this is so. Many states specify that all funds received beyond the first month’s rent are included within the maximum security deposit and, although I haven’t read the statute itself regarding that issue, I would expect that the maximum security deposit in NJ likely includes most items called fees. Furthermore, it is possible that a court would so hold even if the issue is not covered by statute.

It is my understanding that the landlord can charge additional rent for pets, but it would be better to simply charge a higher rent than to have a separate pet rent so as to avoid the issue as well as allow for a higher security deposit without worrying about whether the maximum security deposit must be calculated based on the regular rent without considering a pet rent.

Be sure to remember that no pet fee or pet rent can be charged someone who is in the protected class of disabled under fair housing laws and has an assistance animal.

It is always advisable to utilize an adequate “pet agreement,” either as a stand alone document that is referenced in and made part of the lease agreement or included within the lease agreement itself.

Finally, you should also check with your city or township, as sometimes they have additional rules regarding leases and security deposits. This is particularly true for rental units that are under any type of rent control.

Expenditures – Part 1

August, 2011

Expenditures – Part 1

In a recent newsletter, we discussed which receipts are income and which are not income and when income must be reported. In this newsletter we will begin a discussion of expenditures. Because expenditures can be of different types with different reporting procedures, the subject of expenditures is more complex than the subject of income. Accordingly, the discussion will be spread over several newsletters, starting with some basics in this issue and those expenditures that are deductible in the year paid.

Deduct, Capitalize, Section 179, Amortize, or Add to Basis?

Landlords make lots of expenditures throughout the year related to operating, preserving, and upgrading their properties. Most landlords know that (1) some expenditures may be expensed (deducted in the year made), (2) others must be capitalized and depreciated over the period specified by the IRS, (3) some that would normally have to be capitalized can, with certain limitations, be deducted under Section 179, (4) yet others must be amortized over a particular period, and (5) still others must be added to cost basis, affecting income taxation only in the year the property is sold.

Personal vs. Business

Generally, one cannot deduct personal, living, or family expenses. Those that are considered Schedule A expenses – including the total of primary and second home loan interest and property taxes; those medical expenses and casualty losses that exceed specified amounts; and expenses related to special events – can be effective deductions if the itemized deductions total more than the standard deduction for the given year. However, for an expenditure for something that is used partly for business and partly for personal purposes, the total cost must be allocated between the business and personal parts and you can deduct or depreciate the business part. Section 179 cannot be utilized for property used less than 50 percent in business.

Prepayment       

You generally cannot deduct expenses in advance, even if you pay them in advance. This rule applies to both the cash and accrual methods of accounting. It applies to prepaid interest, prepaid insurance premiums, and any other expense paid far enough in advance to, in effect, create an asset with a useful life extending beyond the end of the current tax year.

Personal use of rental property

If you sometimes use your rental property for personal purposes, you must divide your expenses between rental and personal use. Also, your rental expense deductions may be limited. For a vacation/second home that is rented for a very limited number of days each year, the rules are different.

Partial interest

If you own a part interest in rental property, you can deduct the part of the expenses that is allocated to your interest.

Portion of Property is Rented

If less than an entire property is rented, with the remainder used personally, you can deduct the expenses in proportion to the part that is dedicated to rental use.

Property Rented For Part of a Year

If you convert a personal residence to rental use, you can deduct expenses from the date you change your property to rental use.

When to Deduct

You generally deduct your rental expenses in the year you pay them.

What Is Deductible

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.

For many rental property expenditures, it is easy to decide whether it can be expensed or must be depreciated. As examples, the cost of repairing a leaking faucet can be expensed, while the cost of building a new concrete block wall around the backyard must be depreciated. However, treatment of some expenditures – for example, the repair or replacement of flooring or roofing – is not always so clear.

Vacant Rental Property

If you hold property for rental purposes, you may be able to deduct your ordinary and necessary expenses (including depreciation) for managing, conserving, or maintaining the property while the property is vacant. However, as a cash basis taxpayer you cannot deduct any loss of rental income for the period the property is vacant.

Pre-Rental Expenses

You can deduct your ordinary and necessary expenses for managing, conserving, or maintaining rental property from the time you make it available for rent.

Depreciation

You can begin to depreciate rental property when it is ready and available for rent.

Expenses for Rental Property Sold

If you sell property you held for rental purposes, you can deduct the ordinary and necessary expenses for managing, conserving, or maintaining the property until it is sold.

Uncollected rent

If you are a cash basis taxpayer, you do not report uncollected rent. Because you do not include it in your income, you cannot deduct it. If you use an accrual method, you report income when you earn it. If you are unable to collect the rent, you may be able to deduct it as a business bad debt.

Is The Landlord Responsible…..

August, 2011

Some Questions & Answers

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Q1

Is the landlord responsible for the cost of food spoilage if a tenant’s refrigerator breaks down?

A1

Your question says “tenant’s refrigerator.” If the refrigerator truly belongs to the tenant, the landlord would usually have no liability. If the problem resulted from lack of electricity rather than mechanical failure, the landlord would not be liable unless the landlord was personally responsible for the loss of electricity.

However, I think you might mean a refrigerator owned by the landlord and provided by the landlord for the use of the tenant. In this case, it could go either way depending on various facts regarding the refrigerator and to the landlord’s reaction to the event.

One factor would be whether the lease agreement makes the tenant responsible for repairs to the refrigerator and, if so, whether it is legal to do so in the jurisdiction where the rental unit is located for the type of unit involved. In some jurisdictions, landlords are limited in what maintenance the tenant can be made responsible for unless the rental is a single-family home for which there is considerably less limitation.

Another factor would be whether the landlord made reasonable effort to have the refrigerator repaired within a reasonable time after the tenant reported the problem to the landlord. Of course, there could be a lot of secondary issues that would be considered to decide whether reasonable effort was made and whether the delay in repair was reasonable. Issues might include (1) when the tenant knew there was a problem compared to when the problem started – if the tenant discovered his food was spoiled upon returning from vacation, the landlord would not likely be found liable; (2) when the landlord became aware of the problem and the time required to solve it – delays beyond the landlord’s control would likely not make the landlord liable; (3) whether or not the landlord had someone taking care of such issues while the landlord is out of town or otherwise not reachable; (4) whether the tenant ever tried to exercise his rights to have the repair made when the landlord could not be reached within a reasonable time with reasonable effort; (5) whether or not the tenant exercised restraint against opening the refrigerator after discovering the problem before spoilage had begun; and/or (6) if the problem occurs when repair services are not available are in the area where the property is located. Whether or not the extra cost of repair at non-business-hours times might be an acceptable excuse for not getting the matter quickly taken care of would depend on a judge if the matter went to trial.

Regarding items 4 and 5 above, a tenant should be expected to take steps to minimize damages. If the tenant cannot contact the landlord, the tenant could himself call for repair service, pay for it himself, and expect reimbursement from the landlord. If the refrigerator door is not opened, the time before spoilage will be significantly longer than if the door is opened often after the failure occurs.

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Q2

I’m looking for a tenant application form for screening on a commercial building.

A2

I will assume that you are talking about commercial property that will have relatively small to medium size businesses as tenants rather than General Motors or Microsoft. For such property, one usually needn’t have an application form which is significantly different than that for residential. Usually the major differences would be to have lines for providing the business name; the business activities of the applicant business; the names of the principals (the proprietor of a sole proprietorship doing business under a fictitious name, the general partners of a limited or general partnership, the officers of a corporation, the managing members of a LLC); and, in all cases, the names of those who will be signing for the entity.

I assume that you are relatively new to commercial property management, so I’ll mention a few other things regarding commercial leasing that are related to application forms.

For small business tenants, you will almost always be depending on the personal financial strength and the credit and rental history of the individual business principals (and/or one or more guarantors when the principals don’t fully qualify on their own) because the business entity itself will usually have no significant assets. Accordingly, you will want to do credit screening on the principals rather than on the business itself, whether the business entity is a limited liability entity such as a corporation or LLC or is a sole proprietorship doing business under a fictitious name (dba).

If a sole proprietorship or if a general or limited partnership, simply obtain credit reports and perform any other screening (including identity verifications, previous landlord checks, financial condition, etc.) on the sole proprietor or on each individual general partner. If the business is operated by a corporation, LLC, or other limited liability entity you need to do screening on one or more individuals who have the financial condition (individually or collectively) that will make it likely you will receive timely rent payment even when business is bad and who otherwise meet your qualifying criteria.

Different types of limited liability entities may have somewhat different requirements regarding who signs the lease. For a corporation, this might be the President, Secretary, Treasurer, Directors, major shareholders, a combination thereof, and/or any other party or parties necessary to qualify the business to your standards. For a LLC, this might be managing members and/or other members. In either case, managing parties are preferable to non-managing parties because those who are liable may be more careful managers.

One should never lease to a limited liability entity without requiring a personal guaranty from each of those parties who are necessary to qualifying financially unless the entity itself is financially qualified and reasonably certain to be around past the end of the lease period. When I managed commercial properties, I required credit reports (and other screening) on and personal guaranties from at least two officers or directors for corporations and two managing members of LLCs.

For other than sole proprietorships, one should always require written proof of authority for those signing the lease to bind the entity regarding the lease no matter what the financial strength of the business entity. For a corporation, this might consist of the appropriate pages of the Corporate Bylaws or, if necessary under the bylaws, an adequate special Corporate Resolution. For a LLC or similar entity, this might be the appropriate pages of the Articles of Organization, Operating Agreement, and/or Management Agreement. Some entities may also require a specific resolution or other action to bind the entity for specific items such as lease agreements.

For even a general or limited partnership, even though the general partners are by law usually liable for all partnership acts by any one general partner, it is still a good idea to see the paragraphs of the partnership agreement that specify signing authority. This is because a partnership agreement might require the signature of more than one partner in order to legally bind the partnership for certain transactions. Signature of fewer than required partners would bind the signing parties, but may not make the non-signing general partners liable for the lease.

For reasons beyond the scope of this reply, the spouse’s signature should be required along with the principal’s on the lease or on guaranties by any married guarantors.

Finally, be sure that the lease agreement clearly states that the qualifying individuals are personally liable and not just signing on behalf of the business or accomplish this via guaranty agreements.

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Q3

Do you have a sample form for a month to month rental agreement?

A3

There is a “State” Residential Lease Agreement form for each state. The form can be used for either a month-to-month or a long-term rental agreement depending on the ending date inserted into the “TERM” clause. The Word document version can also be modified as needed for specific rental properties.

After logging in, click “Forms by State” under “Landlord Legal Forms,” and select the state of interest.

Advertising Your Rental Vacancy

August, 2011

Advertising Your Rental Vacancy

Hello?  – Any applicants out there? If you’re not getting applications, do potential renters even know you have a vacancy? Are you missing out on rental income because your advertising doesn’t reach your target market? Tenant selection will be a moot point if you do not have applicants to screen and, if you get only one or two applicants, your chances of getting a good tenant are significantly reduced. Your goal is to attract as many rental prospects as you can, sell them on the benefits of your community, and encourage them to complete a rental application for consideration as your next tenant.

Advertising helps you do that. Through advertising you can get the word out to as many people in as many ways possible that you are open for business and welcome the opportunity to be of service.

Most likely your advertising dollars are in short supply and you need the most bang for the buck. Knowing how to advertise and where to advertise is crucial to staying within your advertising budget. Where do you start?

What Works?

What works best often depends on the type of property, location, competition, local market conditions, and even seasons of the year. Most landlords find that it takes a combination of advertising methods to produce an adequate pool of qualified applicants.

Although there are many different approaches to advertising rental properties, a broad approach is the most commonly used.

A broad approach blankets the potential market with information made available to all parties, whether suspects, prospects, or applicants, whether interested or not, whether qualified or not. Newspaper classified ads are good examples of the broad approach to advertising. Using a metropolitan newspaper with a large circulation reaches a great number of readers (newsstand, home delivery, and online) but it is difficult to determine how many of those readers are actively looking for a rental home or searching during the exact period of time that your classified ad is accessible. A disadvantage of classified advertising in major metropolitan newspapers is that it may be expensive.

You may decide that a more defined advertising approach is appropriate for your property and target market. Word of mouth advertising and placing “For Rent” signs on the property are examples of a narrow approach to advertising. A disadvantage of narrowly defined advertising is that it may take longer to fill a vacancy.

Truth in Advertising

Take care not to exaggerate the features of the rental property, puffing it up to impress potential renters. While it might sound good to wax eloquent on the property’s amenities, particularly when the amenities play to the needs and desires of future tenants, the choice of words (oral or written) or even the manner in which the words are spoken can potentially cause problems for the landlord. A landlord can increase his liabilities and responsibilities by his actions and his promises.

Location

Location, location, location – a golden opportunity ready made for advertising. A desirable location is definitely a strong selling point and can mean big bucks for you – if you’ve got location, flaunt it (as long as you’re truthful). If potential renters want to be located there, they are also more likely to want to stay there and they may have friends. Don’t discount the power of “want over need.”

Don’t Forget Curb Appeal

If you’re looking for some free help in advertising your vacancies, don’t forget curb appeal. The exterior of your property gives a pretty good indication of the condition of the interior. As prospects drive by and picture themselves living there, they are also being conditioned to the standard that is expected to maintain the property. If your property is clean, well-kept with fresh paint, pretty landscaping with grass and flowers, cash in on the value of that first impression.

Distinctive Characteristics

Visit your property as if you were a prospective renter. What do you see? What don’t you see? Would your property’s amenities favorably compare with other rentals in the area? Amenities play a large role in the final selection of a rental unit. Ideally your property should have amenities that appeal to the widest market of potential renters. Pools, green-belt areas, game room, or a fitness center can be as important as in-unit laundry facilities, latest model appliances, or reserved parking. Many renters look for properties with easy driving access to major highways while others look for property locations on public transportation routes. The availability of hospitals, medical offices, schools, shopping centers, or other retail businesses may play a part in the decision to “live here, not there.”

Local Markets

Supply and demand in a local market has a direct impact on the depth and quality of applicant pools. Before you adjust your standards determine the cause and effect of such a decision. Adjusting your standards is not the same as deviating from your standard. Don’t risk a fair housing complaint by treating applicants differently. Even if there is only one applicant, you are not compelled to take the applicant if he/she does not qualify under your standards. Installing a bad tenant is a bad decision every time.

Setting market rent is a better strategy for the long-term. However, you may decide to offer “specials” or other incentives to try to beat the competition. Words of caution for this strategy – make sure you can afford to discount the rent and make sure you do not violate any state or local laws regarding such programs.

Rules and Regulations

There are federal, state, and local laws governing most aspects of landlording. Most states have detailed landlord-tenant statutes and some local municipalities regulate certain aspects of rental housing as well. State and local laws are almost always more restrictive than are federal laws. You will be required to comply with the most stringent of laws. Of particular importance to landlords in their advertising is complying with federal Fair Housing requirement Section 804(c).

Section 804(c)of the Fair Housing Act specifically makes it unlawful to make, print, or publish, (or cause to be made, printed, or published), any notice, statement, or advertisement, with respect to the sale or rental of a dwelling, that indicates any preference, limitation, or discrimination based on race, color, national origin, religion, sex, familial status, or handicap. This prohibition against discriminatory advertising applies to single-family and owner-occupied housing that is otherwise exempt from the Fair Housing Act.

Traditional Advertising Methods

These tried and true advertising methods have long been the cornerstone of many landlords’ advertising plans.

  • Word of Mouth
  • For Rent signs
  • Newspaper / Magazine Advertising
  • Bulletin Boards
  • Local Employers
  • College housing placement office
  • Military Base Housing Coordinator
  • Section 8 Office
  • Networking / Landlord Associations
  • Mailers – Direct Mail, E-Mail
  • Flyers
  • Signage
  • Websites – your own and/or others
  • Vacancy listing services
  • Social media networks
  • Radio / TV
  • Cold calls to local business to generate referrals
  • Pay per click web advertising

Evaluation

You should evaluate your advertising effectiveness in order to determine what works and what doesn’t. Keep written documentation of your advertising efforts, including a print copy of each ad placed, the number of responses received from each medium, the number of qualified applicants obtained from each medium, and the cost (including time) of each medium. From this information you can get at least a rough idea of what advertising media are best for your particular property under various market conditions.

Document Retention

You should keep all advertising copy and information regarding responses for at least two years in order to show that you have non-discriminatory advertising policies in the event that a prospect or applicant files discrimination charges.