Own your present. Empower your future.

This is an NAR contributing article written by Erin Stackley On Thursday, February 29, the White House announced its “New Actions to Boost Housing Supply and Lower Housing Costs,” aimed at creating more affordable homes and increasing transparency in rental housing. 35314

Your landlord client undoubtedly turns to you, their REALTORâ as the housing expert; while these answers are here to help guide your understanding of the interplay between fair housing, kids and pets please remember that all decision-making rests with the Landlord. Be the source of the information for your client, but refrain from the legal analysis required in making these determinations. The landlord’s elderly tenant doesn’t want a lot of noise, can they deny applications with children?   No. The rental unit is very small, very old and located on a busy road, can the landlord state a preference for single occupants?   No. Housing providers cannot discriminate based on familial status, which includes treating potential tenants who have children worse or differently than potential tenants without children or excluding them from the application process altogether. If a potential tenant…

Buyers undoubtedly look to their REALTOR® for community expertise. REALTORS® often field questions about the quality of schools, the kids in the neighborhood and general safety. Answering these questions can be tricky as you walk the line between being an expert resource and violating fair housing and ethical considerations. The good news? You can both serve your client and adhere to fair housing laws and the REALTOR® Code of Ethics. What is the Fair Housing concern when discussing neighborhoods and schools? Steering. Steering occurs when a buyer is directed toward or away from a neighborhood because of a characteristic protected under the Fair Housing Act. The easiest way steering can occur is when a real estate professional expresses their own opinion. It does not matter whether that view is positive or negative, so long as it has the effect of…

The Fair Housing Act prohibits housing providers from making statements or placing advertisements that discriminate based on race, color, national origin, religion, sexual orientation, gender identity, familial status, disability, source of income, and certain other characteristics. In many instances, a REALTOR® is hired to market and advertise a landlord’s rental properties and must be mindful of fair housing violations in advertising. REALTORS® must be able to clearly communicate to their landlord client impermissible advertising practices. While advertisements clearly cannot explicitly ban certain applicants, the law also equally prohibits advertisements that suggest a preference. The following are examples of discriminatory language in advertisements for housing: Not Section 8 certified. Must have minimum annual income of $50,000. Ideal for a college student. Proof of employment income required. Perfect for professional couple. One occupant preferred. Must have good credit and verifiable employment. No…

Artificial Intelligence promises to continue to make big gains in the real estate space offering digital assistance and automatically generating advertising and marketing content. However, it is crucial that REALTORS® identify potential ethical implications of this technology. We don’t yet know how this technology will interplay with the Fair Housing Act or in regulated housing space such as affordable, student and senior housing. While AI can respond like a human, it is still technology and lacks empathy or problem solving abilities that humans possess. It will be interesting to see if despite particular programing, AI develops biases and/or violates established laws against discriminatory housing preferences. As this technology grows, it will surely become increasingly regulated. For now, it is up to you, the real estate professional to ensure that any technology you use is in compliance with fair housing laws…

The short answer is No. Landlords want to know if the tenant applicant will pay the rent on time, keep the apartment in good condition and be a good neighbor, however, they are limited in permissible screening inquiries by Massachusetts law. They often use the services of a REALTOR® to market the property, facilitate tenant applications and guide the Landlord in their screening process. The prudent REALTOR® must be familiar with permissible screening and fair housing concerns. I want to make sure the prospective tenant can afford the monthly rent, so why can’t I require employment verification? Looking at a prospective tenant’s income is a permissible means of screening. However, when you require employment verification, this can lead to discrimination based on source of income which is illegal in Massachusetts. Housing providers are not allowed to require an applicant for…

This report looks at homeownership trends, the mortgage market and affordability by race, and home buyer demographics from the 2022 Profile of Home Buyers and Sellers, home buyers and fair housing. Some findings include: Hispanic/Latino home buyers reported the highest share of student loan debt at 46% with a median amount of $70,000. Black/African American home buyers reported a median student loan debt amount of $35,300, with 33% saying they had student loan debt. Fifteen percent of Hispanic/Latino and 14% of White/Caucasian and Black/African Americans purchased multi-generational homes. Among those groups, they primarily purchased a multi-generational home to spend more time with aging parents, health/caretaking of aging parents/relatives, wanting a larger home that multiple incomes could afford together, and cost savings. The share of multi-generational buyers was only 12% among Asian/Pacific Islander buyers. Twenty-two percent of Asian/Pacific Islanders, and 11%…

This report looks at homeownership trends, mortgage market and affordability by race, and home buyer demographics from the 2021 Profile of Home Buyers and Sellers, home buyers and fair housing. Some findings include: Black/African-American home buyers reported the highest share of student loan debt at 41%, with a median amount of $45,000. 19% of Hispanic/Latinos, and 18% of Asian/Pacific Islanders and Black/African-Americans purchased multi-generational homes. They primarily purchased a multi-generational home to spend more time with aging parents, health/caretaking of aging parents/relatives, wanting a larger home that multiple incomes could afford together, and cost savings. The share of multi-generational buyers was 10% among White/Caucasian buyers. 21% of Asian/Pacific Islanders, and 11% of Hispanic/Latino buyers used a gift from relative or friend towards their down payment for their home.

Fair Housing Considerations in Tenant Screening Housing providers often implement procedures in which prospective tenants are screened to determine whether to lease a particular property to that individual. While it is important to assess a prospective tenant to ensure that they will meet the obligations under the lease agreement, improper or unfair screening procedures can open you up to potential Fair Housing violations. Rental Vouchers A major area of concern that has been receiving a significant amount of attention1 over the last couple of years is discrimination against prospective tenants who receiving housing assistance, such as Section 8. In 2020 the Office of the Attorney General entered into settlement agreements totaling $110,000 with four different real estate brokerages for discrimination against low-income tenants who were the recipients of housing vouchers.2 Additionally, just this month, the Office of the Attorney General…

Real estate professionals are legally obligated to uphold fair housing laws, and the language and images you use in your advertising needs to be vetted carefully. REALTORS® also have an obligation to do so under Article 10 of the Code of Ethics. “Advertisements should never indicate a preference or limitation based on a protected class, which at the federal level includes race, color, religion, sex, disability, family status, and national origin,” Mike Rohde, staff attorney at the National Association of REALTORS®, says in the latest “Window to the Law” video. “HUD recently expanded its interpretation of sex to include sexual orientation and gender identity, and state and local laws may expand the categories of protected classes further.” Rohde provides a tip: When advertising a property, focus on describing the property, not the buyer or tenant. As such, he cautions against using phrases…