Key Takeaways

• We ensure your rental practices align with Fair Housing laws: From advertising to screening, we help you stay fully compliant by avoiding discriminatory language, questions, or actions that could lead to legal issues.
• We guide you in treating all tenants fairly and equally: Our team educates and supports landlords in providing reasonable accommodations, maintaining non-biased policies, and fostering respectful landlord-tenant relationships.
• We protect your investment through legal compliance: With over 30 years of experience, Specialized PM Charlotte helps you avoid costly penalties by ensuring your property management aligns with North Carolina and federal housing regulations.

A key recipe to being a successful landlord in Charlotte is knowing how to treat tenants fairly and equally. After all, tenants who feel respected and valued are more likely to care for their rented premises and renew their lease multiple times.

The Fair Housing Act was established to guarantee tenants the right to fair and equal housing access. And as a landlord, you must respect this right in all your interactions with the tenant.

Including, in the phrases you use when marketing the property, the questions you ask when screening prospective tenants, and in other aspects as well.

In this blog, our team at Specialized PM Charlotte will teach you what the Fair Housing Act in North Carolina is and what to do to stay compliant.

What is the Fair Housing Act?

The Fair Housing Act was established in 1968 to help eradicate rampant discriminatory practices and policies in housing. It was commonplace, for instance, for real estate agents to direct minority renters to specific, often segregated, neighborhoods.

Redlining was another deeply entrenched system that severely limited where people of color could live. Certain maps color-coded neighborhoods based on their perceived lending “risk.” Areas with significant minority populations were marked in red and deemed hazardous, which led to discrimination in regards to mortgage accessibility and investment.

Other discriminatory practices and policies included racially restrictive covenants, racial steering, blockbusting, and zoning laws.

But all that significantly diminished with the passage of the Fair Housing Act. It made housing discrimination based on certain characteristics illegal. This included discrimination in the renting, financing, and selling of homes based on certain protected classes, such as race and sex.

What is the Fair Housing Act in North Carolina?

After the Federal Fair Housing Act was established in 1968, various states also passed their own local legislation to extend the list of protections.

However, the state of North Carolina has yet to create legislation extending the list of protections to its residents. As such, the same protected classes at the federal level also exist at the state level and do not differ under North Carolina Landlord-Tenant Law.

The protected characteristics are: race, color, sex, religion, nationality, disability, and familial status.

The government agency that enforces the act in North Carolina is the state Office of Administrative Hearings’ Civil Rights Division.

What are Some Examples of Discriminatory Landlord Actions in North Carolina?

Whether you’re looking to find a new tenant or having problems with a current tenant, you’ll want to make sure none of your actions can be labelled discriminatory. You should take great care in wording questions or listings to make sure no one feels excluded.

The following are examples of landlord discriminatory actions in North Carolina:

• Informing a prospective tenant that a rental unit is available, then denying them the unit due to their race.
• Directing a prospective tenant to a different neighborhood based on their race, color, religion, sex, or national origin.
• Advertising rental properties using language that conveys discriminatory preferences. Examples include phrases such as “Not Ideal for Families with Young Children” or referring to the neighborhood as a “Christian Community.”
• Employing discriminatory questions during the tenant screening process. For instance, inquiring about a person’s pregnancy status, sexual orientation, or ethnic background (e.g., “Are you Chinese or Japanese?”).
• Failing to provide reasonable accommodations for tenants with physical or mental disabilities upon request. This includes, for example, denying access to service animals or emotional support animals due to a general “no pets” policy.
• Unequal treatment of tenants based on a protected characteristic. Examples include imposing different rental rates, security deposits, or fees on the basis of race, color, religion, or other protected categories.
• Engaging in harassment directed at tenants based on their membership in a protected class, such as using derogatory language or slurs.
• Attempting to evict a tenant or their guest on the basis of their race, color, religion, sex, national origin, disability, or other protected status.

What is Exempt Under the Fair Housing Act in North Carolina?

Although the Fair Housing Act applies to most residential property types, some exemptions do exist.

They include the following:

• Owner-occupied buildings with a maximum of four units. If the owner occupies one of the units as a primary residence, it may be exempt from the provisions of the act.
• A single-family home that the owner rents by themselves without using a property manager or a real estate agent. The owner of such a building must not own more than three such single-family homes at any one given time.
• Homes that are operated by religious organizations or private clubs. These are allowed to limit the occupancy of their housing to their members. That said, management must keep in mind two things. First, the housing must be operated for non-commercial purposes. Second, there must not be discrimination within the membership based on any of the protected classes.
• Homes that are designated for elderly people. Homes that are intended for persons 55 years of age or older are exempt from the familial status discrimination prohibition. The home, however, must be HUD-approved and specifically designed for elderly persons and occupied by elderly persons.

What Can a Landlord Do to Stay Legally Compliant With the Fair Housing Act in North Carolina?

As previously mentioned, the Fair Housing Act applies in most, if not all, landlord-tenant interactions. As such, it’s important to familiarize yourself with its provisions to ensure compliance.

Violating the act in any way, shape, or form can severely impact your bottom line. If you’ve been found guilty by the NC Office of Administrative Hearings’ Civil Rights Division, you may be liable for hefty civil penalties and fees.

To ensure a smooth experience in this regard, keep the following in mind:

• Don’t use phrases that show preferences or limitations when marketing your rental property.
• Don’t use discriminatory screening questions when choosing tenants.
• Provide reasonable accommodations to a disabled tenant.

Bottom Line

When renting out a property, you must ensure that all your rental practices and policies comply with the fair housing laws. Luckily, this blog has you covered in this regard.

If you have a question or need help with managing your Charlotte rental property, look no further than Specialized PM Charlotte. We have over 30 years of experience in the industry; get in touch to learn more!

Disclaimer: This article is intended for informational purposes only and does not constitute legal advice. Landlords and property owners should consult with a qualified attorney or local housing authority to ensure full compliance with federal, state, and local fair housing laws. Specialized Property Management Charlotte is not a law firm and does not provide legal representation.