The Fair Housing Act in Texas (FHA) is a foundational law that every Texas landlord should know. It lays out the protections tenants have against housing discrimination, as well as the rules property owners must follow to protect those rights. In this guide, we’ll break down the key points landlords should know about fair housing laws in Texas to ensure compliance, prevent disputes, and have satisfied tenants. Read below to learn more.
What is the Fair Housing Act in Texas?
The federal Fair Housing Act (FHA) prohibits landlords nationwide from discriminating against members of protected classes throughout the rental process. Similarly, the Fair Housing Act in Texas enshrines these protections on a state level. As experienced property managers in Austin, we know that following the letter of these laws is absolutely critical for landlords’ success. Not complying with them can lead to severe legal consequences, from steep fines to outright lawsuits.
Who is Protected Under the Fair Housing Act in Texas?
The Federal Housing Act in Texas and the general US has 7 protected classes: race, color, religion, sex, national origin, disability, and familial status.
However, some cities go even further by adding additional categories to protect residents. For example, Austin prohibits housing discrimination based on source of income, age, marital status, student status, creed, sexual orientation, gender identity. Similarly, Dallas has extended protections to include sources of income. So, you should always do your due diligence on your local jurisdiction’s policies to make sure you’re covered.
Common Fair Housing Violations in Texas
It’s critical that landlords stay aware of some of the most common ways they could accidentally violate the Fair Housing Act in Texas. After all, discrimination goes beyond outright refusing tenants a rental. It can manifest in subtler ways like:
- Discriminatory Advertising: When you create advertisements, you must refrain from using any wording that shows differential attitudes or treatment based on personal characteristics, like age, family status, or other protected traits. For example, if you use phrases like “perfect for single professionals” or “no children allowed,” some may see it as an act of discrimination based on familial status.
- Applying Policies Inconsistently: If you enforce the rules differently for certain tenants, that could be a form of discrimination. For example, if you call out one tenant for being too noisy but ignore similar issues with another, it may seem unfair or biased. That’s why it’s so crucial that you apply your policies with everyone equally and consistently.
- Not Making Reasonable Accommodations: It’s all too common for landlords to drop the ball on providing tenants with disabilities reasonable accommodations. Landlords are obliged to give tenants accommodations that don’t cause undue hardship, like installing grab bars to a shower. As such, landlords should always be ready to make adjustments that support tenants’ accessibility needs.
- Steering Practices: It’s illegal to guide, or “steer,” potential tenants towards, or away from, any aspects of the rental process based on their protected classes. For example, if you tell a family with children that they’d be more comfortable in a different building, or don’t even show them certain buildings, it could be considered discriminatory steering based on familial status. Furthermore, you cannot falsely tell them certain properties or facilities are unavailable when they really are, or bar them from using those entities altogether.
- Different Terms or Qualifications: You cannot give protected classes different terms or qualifications for renting based on their protected classes. For example, you cannot make all tenants of Norwegian origin pay more rent than other renters because they hail from Norway. Furthermore, you cannot require all tenants with disabilities to have guarantors as a qualification when you don’t require that of all other tenants.
- Retaliation Against Tenants: If you retaliate against tenants for exercising their fair housing rights, that is illegal. For example, if someone files a discrimination complaint, you cannot respond by starting an eviction without a valid reason, raising the rent, or refusing to renew a lease. Tenants must be able to assert their rights without fear.
What Happens if a Landlord Violates the Fair Housing Act?
When landlords violate the Fair Housing Act in Texas or other laws, it can result in serious consequences. First, the U.S. Department of Housing and Urban Development (HUD) or your nearby Fair Housing Agency will investigate the discrimination claim made against the landlord. Then, if the investigation confirms the landlord has made a violation, the landlord may face hefty fines, ranging from several thousand to tens of thousands of dollars. In addition, they may also be required to pay damages to the affected individual for emotional distress, lost housing opportunities, or other related harm.
Moreover, the tenant could potentially sue you, which could result in even worse financial penalties or changes to your rental practices. What’s more, as word spreads about your legal violation, you could face long-lasting damage to your hard-earned reputation, which then can lead to problems with attracting tenants, contractors, and more.
Best Practices to Comply with the Fair Housing Act in Texas
Complying with the Fair Housing Act in Texas (and its localities) doesn’t have to be complicated. It really all comes down to treating everyone equally, without differentials. By proactively implementing best practices, landlords can avoid violations and create a welcoming environment that attracts diverse tenants.
Tenant Screening Criteria: Your first step towards accomplishing this is to develop clear, standardized tenant screening criteria that applies to everyone. Having objective, concrete like minimum credit scores, income requirements, or rental history benchmarks ensures you’re evaluating all applicants equally. Also, documenting these criteria and your decisions also helps protect you from claims of bias.
Stay Informed: It’s also essential to stay in the loop about local regulations. As we said earlier, knowing just the Fair Housing Act in Texas and the general US isn’t enough. Cities like Austin and Dallas have additional protections, like prohibiting landlords from discriminating based on tenants’ source of income. This way, you can make sure you’re not missing anything.
To really cover all your bases, proactively take part in fair housing training. After all, no matter how informed you are, that knowledge can fade and grow outdated over time. By doing this, you and your team can stay on top of ever-changing laws and avoid unintentional violations.
Cultivate Open Communication: If a tenant requests a reasonable accommodation or has feedback for you, listen to their needs and work together to find a solution. This not only demonstrates compliance, but shows you’re committed to making everyone have a satisfactory experience.
How Bay Property Management Group Can Help
It can be overwhelming to navigate the Fair Housing Act in Texas, its cities, and on a federal level, all at the same time, with all of its nuances and complexities. But you don’t have to figure it all out on your own. Educating yourself on these laws and implementing fair practices is the first step toward building a thriving, legally compliant rental business. And whether you’re a new landlord or a seasoned property owner, having the proper guidance can make all the difference.
At Bay Property Management Group, we’re here to support you every step of the way. Our professionals can handle crafting legally compliant rental criteria, tenant screening processes, advertisements, lease agreements, rental rates, disputes, and the like. And the Fair Housing Act isn’t all we cover. We also handle local and federal building codes, the Americans with Disabilities Act, and more. Contact us today to learn how our expert property management services can help you succeed.
