The Florida Fair Housing Act (FHA) entitles every American to equal opportunity in the housing market under the fair housing laws.

For example, housing providers who do not provide an accessible route into the property or provide reasonable accommodation for a disability or any other prohibited practices.

There are seven protected classes under the fair housing laws, including race, color, national origin, religion, disability, sex, and familial status.

However, there are landlords in Florida who aren’t aware of the implications that could lead them to federal court.

Some property owners or real estate agents face costly housing discrimination lawsuits because they don’t know about the FHA.

Are you a housing provider, landlord, or homeowners association in Florida, Florida looking to learn more about the FHA?

Here are the eight most frequently asked questions about this federal law.

#1: What’s the Federal FHA?

The Fair Housing Act aims to counter any housing discrimination. It was put into place to stop sellers and landlords from housing discriminating against people from a particular class of society.

As a result, every American gets fair and equal treatment in activities related to housing. This protection includes renting and buying a house together with getting a mortgage loan.

#2: What’s the history behind the Fair Housing Act?

There is a series of events preceding the FHA and Florida commission on human relations. In the past, people dealt with serious housing discrimination issues at the local governments level. The strong will to counter these hardships resulted in:

• The Civil Rights movement in the 1960s
• The Rumford FHA in 1963
• The Civil Rights Act in 1964

These actions led up to enacting the FHA in 1968. The establishment took place a week after the assassination of Martin Luther King Jr.

#3: Who are protected under the Florida Fair Housing Act?

This federal law protects people in seven classes. The protected classes are: Race, color, national origin, religion, disability, sex and familial status.

The category of familial status includes pregnant women, those securing legal custody, and those having children under the age of 18. In 2017, a ruling by a federal judge made clear that sexual orientation and gender identity are protected classes under the FHA. There is a pending effort for an amendment to make the principle explicit.

#4: What does the Fair Housing Act aim to achieve?

You may wonder what housing discrimination looks like in real-life situations. Take a look at the following list of practical examples:

• Discriminatory statements against a protected class, such as race, color, national origin or other protected class, in property ads
• Refusal to disclose information about a mortgage loan
• Setting disparate terms and conditions on a mortgage
• Refusal to rent, sell, or negotiate for housing or make reasonable modification
• False claims about the availability of housing because of a tenant’s national origin, race, or other protected class
• Quoting various terms and conditions depending on the prospective tenant’s class
• Refusal to make or purchase a loan
• Making changes to amenities, other environmental controls, and accommodations depending on the tenant’s race, color, religion, sex, or other protected class that are not classed as reasonable modifications.

There are many other potential scenarios. All these forms of housing discrimination are exactly what the FHA aims to shield buyers and tenants against.

#5: Does the Fair Housing Act apply to everyone?

No, the most noteworthy exemptions under Florida statutes are as follows:

• Single-family homes rented or sold without using a broker
• An owner-occupied home that has less than four units for rent
• A private club or organization with a members-only policy

#6: What are the consequences for violating the FHA?

The penalties depend on the nature of the violation.

Simple discrimination charges may result in a fine or imprisonment for a year at most or both.

#7: How is the Fair Housing Act enforced?

The U.S Department of Housing and Urban Development (HUD) holds responsibility for the FHA. Anyone who feels their right has been violated can:

• File a claim with the HUD
• File a lawsuit in a federal district court

There are two ways HUD enforces the FHA:

1. They investigate all the discrimination claims. After someone files a claim, they dispatch a dedicated team for investigating the issue. After conducting a thorough analysis, they decide on the next appropriate steps.
2. They hire people to pose as buyers and tenants. That’s why landlords and sellers have to be alert at all times. As a landlord, you can’t afford to make any mistakes in your ads, on phone conversations, and face-to-face meetings.

#8: How can landlords avoid discrimination?

• Remain cautious about what you say on the phone and in person.
• Analyze your rental ads before getting them published. Remove anything that may attract discrimination charges or sexual harassment charges.
• Have the same standards for all prospective tenants.
• Treat everyone with respect.
• Check for state and local laws for further protected classes.
• Remain consistent in the process of tenant screening.
• Recognize any bias you might have against your tenants. Take steps to avoid this bias affecting your actions.

A common misconception involves concluding that you have to accept the first applicant. You can still rule out renters based on criteria that aren’t discriminative. For example:

• Insufficient income level
• Conviction of a crime that could endanger other tenants
• Poor credit

The Bottom Line

The FHA counters discrimination in the housing sector. As a landlord, you have to comply with this federal law at all times. U.S Department of Housing and Urban Development is responsible for the FHA. HUD hires people to randomly check for non-compliance.

The FHA act comes with seven categories of protected classes. The protected classes include race, color national origin, familial status, religion, disability, and sex.

Landlords have to make sure that they don’t take any discriminatory actions against these protected classes and they need to make reasonable accommodations. Even simple discrimination charges carry a fine or imprisonment for a year at most or both under Florida statutes.

If you believe that you’d benefit from the services a professional property management company offers, contact Prime 1 Property Management today!

Disclaimer: This blog isn’t a substitute for expert legal advice. For legal help, contact a qualified attorney. The fair housing law may change, and this blog might not be updated at the time you read it. You may also check to U.S Department of Housing and Urban Development (HUD) official website for updates.

The post 8 Things to Know About the Fair Housing Act appeared first on Prime 1 Property Management.

Purchasing real estate in Florida FL, Fort Lauderdale, and North Lauderdale can be a great investment with many great deals available. However, there are some important tips to consider when buying an investment property altogether.

One of our favorite real estate sayings to live by is “don’t wait to buy real estate, buy real estate and wait.” The longer one waits to buy real estate the more the property will increase over time and the more money it will cost you. So if you want to take advantage of the great deals available, don’t hesitate!

With our experience in property management, here are some of the top tips you should consider when buying an investment property in Florida – the second most populous county in the state.

Look at the future development of the area

Before investing in a Florida area property, you will want to make sure that the area will continue to attract quality renters and that the municipality plans to grow and invest in its surroundings.

You can contact your local Florida municipal planning department to get a rundown on their future development plan and see what the area is planning to do in the next few years and whether investment properties are being built.

Try and dive into the construction plans and see whether or not they plan to build a lot more houses in the area. This could bring the value of your property down due to oversupply. Construction usually means growth, which could also be a good thing too!

Neighborhood surroundings

One tip you want to keep in mind is to consider what the neighborhood surroundings are and their market value. Take into consideration that most prospective tenants who have children will want to rent at a home that is located near a school. If you don’t and it’s a priority for your renters, they might choose to rent somewhere else.

Being located in an up and coming area with fun activities do to and lots of potential for market value growth is very important. People want options and they want to be able to get their necessities fast. Therefore, being closely located from a transit station, bank, grocery store, and other important necessities increases your chances of generating more income.

The number of listings on the market and vacancies

Before you look into investment properties in Florida and Fort Lauderdale, make sure you are aware of the approximate number of houses that are for sale on the market and the percentage of them that are vacant. When buying an investment property, you want to ensure that your property will be rented full-time or as frequently as possible.

If there are many places that are sitting vacant, this might be a bad sign and a red flag that you should investigate why that is. This might be due to a seasonal change or a decline in the neighborhood market.

The potential for natural disasters

One important factor you should always consider is natural disasters that could happen in the area that you are investing in like Florida or Fort Lauderdale.

Of course, you can purchase insurance for this but if you don’t want the pain or stress of having to worry about a natural disaster, make sure to think twice or be prepared for a potential occurrence.

The crime rate

Most prospective tenants will not be interested in renting a home that is in the center of a crime path. For this reason, it is important that you investigate the neighborhood and area before you purchase your investment property in Florida.

Crime can increase and decrease at any time but by doing a little research you should be able to predict whether the area is safe for prospective tenants. Moreover, whether or not this will be a safe community for you and/or your children to grow up in.

The education options in the area

Being close to different schools is a big selling point or in this case a big plus for renters. Tenants want to have options especially if they have children of different ages. Being in proximity to a middle school and high school is important for many families.

The more options you can offer your tenants, the better your luck you will have in attracting quality renters who will rent long-term. Always think of the best option for your future renters and what will attract them to your investment properties in Florida and Fort Lauderdale.

The bottom line

If there is one real estate tip you should retain from the aforementioned ones, it would be that when you’re searching to improve your rental portfolio, do as much research beforehand as possible. This will help you make a well-rounded decision and give you all the information you need.

You will feel more confident with your decision and will likely attract more quality tenants to your rental property or investment properties.

The post Top Tips When Buying Investment Property in Florida appeared first on Prime 1 Property Management.

Buying a rental property in Florida can be a very lucrative investment strategy. Making the right investment can enable you to earn passive income and accumulate assets.

Sadly, some landlords either fail to buy in the right location or just simply buy the wrong property. This is especially true for beginner landlords, who lack experience and industry knowledge.

In this blog, we’re going to look at 6 avoidable mistakes that you should look out for when budgeting your rental property. Let’s get started!

Mistake #1: Buying in the wrong location.

When it comes to real estate, location is everything. It can make the difference between success and failure.

Generally, the location you choose should meet two criteria:

1. It should be appealing to prospective tenants.
2. It should be in an area that you have quick and easy access to.

Finding the right location begins with due diligence. A good investment location is somewhere with plenty of employment opportunities, public transit, and good amenities. These are just some of the things that drive housing demand.

Once you get the location right, the next thing you want to do is begin the property search. Ideally, stay away from fixer-uppers unless you have enough experience to consider yourself a renovation expert.

Mistake #2: Underestimating the cost of repairs.

When buying a property, don’t underestimate repair costs. Be wary of purchasing properties that require lots of repairs before they can be rent ready. While you want to avoid fixer-uppers at all costs, there at times that you may come across an irresistible “great deal”.

Sometimes, “great deals” can turn out to be just that. However, in other cases, they can turn out to be the exact opposite. What you initially thought would be a simple fix can end up costing you a fortune to fix.

Ultimately, the project may end up costing you more time and money than initially budgeted for. The following are some tips to help you deal with rental repairs.

• Budget for surprise costs. Ideally, add an extra 15% to your estimated costs of repairs. For example, what you initially thought was some few cracks on the floor may end being a serious foundation problem.
• Before committing to any repair project, always do your due diligence on the cost of supplies. This should help you stay within your budget.
• Only use professional repairmen. This should help you avoid overpaying for simple repairs and getting shoddy jobs done.
• Invest in a thorough inspection. A professional inspector will provide you a report showing you what exactly is wrong with the property.

Planning ahead of time and avoid problematic properties will go a long way in saving you lots of stress, time, and money in the long run.

Mistake #3: Failing to calculate your potential cash flow.

A smart buy on a rental property can deliver a great return on investment. However, many landlords aren’t careful when it comes to calculating a property’s potential cash flow. The following are good ways of avoiding a property that may affect your bottom line for the worse.

One, avoid overpaying for your property. To do so, check comparable properties. Many landlords that are just starting out make the mistake of buying with their hearts and not their heads. They forget it’s a business deal and not their dream home.

Two, do your calculations. After paying for any maintenance required, insurance, taxes, and mortgage, you should have money left over. If not, it may be worthwhile to look elsewhere.

Next, charge the right rent. The right rent attracts the right renter. That said, setting the right rent requires a great deal of skills and experience. It may be in your best interest to hire a professional property management company.

Lastly, look for areas with high rental demand and low vacancy rates. Buying in an area that’s surrounded by other properties will only lower your home’s value.

Mistake #4: Failing to do your research.

Federal, state, and local laws govern the rental business. Without understanding them, you could find yourself on the wrong side of the law. The following are some tips to help in this regard:

• Ensure your property meets the basic requirements set by Florida Lead Poisoning Prevention Program. This is especially true if you are buying an old property.
• Install carbon monoxide alarms. This is as per Florida Statute 553.885.
• The property you buy must also meet the basic requirements of Florida Implied Warranty of habitability law.
• Make sure you understand the process behind applying for and receiving a rental license in Florida.

Mistake #5: Underestimating the costs of renovations.

Similar to underestimating the costs of repairs, overpaying on renovations is a common problem for new landlords.

There is no denying the fact that improving a property’s desirability is of utmost importance. What you want to avoid, however, is overpaying for them. As a savvy landlord, you want more bang for your buck and not vice versa.

Mistake #6: Failing to hire a professional to manage your property.

A mistake commonly made by new landlords with their first rental property is believing that collecting rent at the end of each month is their primary responsibility. This mentality often ends up being costly to their bottom line.

Managing tenants requires skills, experience, and resources. Without these, it’s best to hire an experienced property management company.

Investing in real estate can be lucrative. However, just like any other investment, due diligence is key to being successful. When it comes to buying rental property in Florida, Florida these are the 6 mistakes you want to avoid at all costs.

The post 6 Mistakes Real Estate Investors Make When Budgeting for Their Rental Property appeared first on Prime 1 Property Management.

How do you keep your Florida property in good shape?

Maintenance is part of it but selecting the right tenants is just as important.

You shouldn’t rely on your intuition when selecting a tenant. It’s vital to have a proper screening process.

Keep on reading to get a more in-depth overview of how you should screen your Florida tenants.

#1: Check their background

Many companies offer background checks. They provide information about the tenant’s credit history, past evictions, criminal activities, and other public records.

The information that’s collected can be useful during your selection process to eliminate potentially problematic tenants from your prospect pool.

#2: Run a credit check

Running a credit check is a vital step as red flags will appear if there’s something out of the ordinary. First, make sure they don’t have any unpaid balances, maxed out credit cards, or late payments. All these signs can point to payment issues in the coming months or years.

Another essential step is checking whether they are heavily in debt.

Smaller incidents don’t necessarily signify that you’ll have problems in the future but if you see a pattern of financial issues, it’s a bad sign and you should continue your search.

#3: Meet prospective tenants

Organize an open house. This way, you get to meet all the prospective tenants. When you talk to them face to face, you’ll get a better understanding of who they are and if you’d want to rent to them.

When you meet the potential renters, it’s your chance to ask them questions. Speak to them in an open and honest way. If you have any particular concerns, speak your mind. You might find out interesting and helpful information about them.

The following are questions you could ask:

• Why are you interested in this property?
• How long are you planning to stay here?
• Do you have any big changes or moves coming in the near future?
• Why are you leaving your previous place?
• How are you doing at work?
• What is the most important thing for you in a rental property?

#4: Have them fill out an application

Don’t let any tenants apply without filling out an official application form. It’s where you gather important information about them. For example, you could inquire about their employment, income level, and financial well-being.

You could also ask for personal references and previous landlords’ contact information as well. This information will help you make better decisions when selecting the right candidate.

#5: Verify the important parts

Data collection is essential. The background and credit checks give you the necessary information, but you shouldn’t solely rely on this data when making your decision.

You should verify the information that the prospective tenants have given to you. Interview key people. For example, previous or current employers and the personal references they gave you. Make sure that these people are independent of each other. This ensures that you are getting high-quality information.

Verification means contacting their previous landlords as well. Most likely, the landlords will be honest with you because they no longer have any underlying interests anymore. Ask them whether the tenant paid rent on time and if their move-out came as a surprise to them.

Additionally, ask if the neighbors complained about anything. If they were loud or if their pets caused any problems, these can serve as potential red flags.

How to deny an applicant after screening?

You need to comply with the Fair Credit Reporting Act (FCRA). Landlords need to notify the candidate that they got a denial as a result of their credit report or related causes. The proper response is an adverse action letter. You need to follow the Fair Housing Act as well.

When you deny an applicant, then have supporting documentation ready. Make sure your actions aren’t against any regulations and laws. When in doubt, consult with an attorney.

Here’s a list of some possible reasons for denial:

• Criminal history
• History of evictions, property damage, or unpaid rent
• Income isn’t enough to support the rent
• You can’t verify their employment

The bottom line: how to effectively screen tenants?

Screening your tenants is an important step for every landlord to take before making your final decision.

Arrange to have an open house to personally meet your prospective tenants. Interviewing them can uncover important aspects to help you in selecting the best candidate in Florida.

Remember to run credit checks and check their background.

Call or meet with individuals who have prior experience with your candidate. This includes previous and current employers along with their former landlords. Pick at least two references that don’t know each other. This way you can be sure to collect information of the highest quality.

The post Quick Guide to Effective Tenant Screening in Florida, Florida appeared first on Prime 1 Property Management.