What are the fair housing laws in California for real estate investors?

Real estate investors in California must abide by the state’s fair housing laws. These laws are in place to ensure that everyone has equal access to housing, regardless of their race, color, religion, sex, national origin, disability, or familial status. Violating these laws can result in serious legal consequences, including fines and lawsuits. In this article, we will explore the fair housing laws in California and what real estate investors need to know to stay compliant.

What are the California Fair Housing Laws?

The California Fair Employment and Housing Act (FEHA) is the state law that prohibits discrimination in housing. FEHA applies to all types of housing, including rental properties, sales, and lending. The law prohibits discrimination based on the following protected classes:

  • Race
  • Color
  • Religion
  • Sex
  • National origin
  • Disability
  • Familial status

FEHA also prohibits harassment based on these protected classes. Harassment can include verbal or physical conduct that creates a hostile environment or interferes with a person’s ability to enjoy their housing. Landlords and property managers have a duty to prevent and address harassment in their properties.

What are the Consequences of Violating Fair Housing Laws?

Violating fair housing laws can result in serious legal consequences. The Department of Fair Employment and Housing (DFEH) is the state agency responsible for enforcing fair housing laws in California. If a complaint is filed with the DFEH, the agency will investigate the complaint and may file a lawsuit against the violator. Violators can face fines, damages, and injunctive relief. Injunctive relief can include requiring the violator to take specific actions to prevent future discrimination.

Real estate investors who violate fair housing laws can also face reputational damage. Discrimination can lead to negative reviews and a loss of business. It is important for real estate investors to prioritize fair housing compliance to protect their business and reputation.

How Can Real Estate Investors Stay Compliant with Fair Housing Laws?

Real estate investors can take several steps to stay compliant with fair housing laws:

  • Train employees and agents on fair housing laws and best practices
  • Develop and implement fair housing policies and procedures
  • Conduct regular fair housing audits to identify and address potential violations
  • Respond promptly and appropriately to complaints of discrimination or harassment
  • Work with a fair housing attorney to ensure compliance with state and federal laws

By taking these steps, real estate investors can reduce the risk of violating fair housing laws and protect their business and reputation.

FAQs

Can landlords refuse to rent to someone with a criminal record?

Landlords cannot have a blanket policy of refusing to rent to someone with a criminal record. However, landlords can consider an applicant’s criminal history on a case-by-case basis. Landlords must show that their decision was based on a legitimate business reason and not based on the applicant’s race, color, religion, sex, national origin, disability, or familial status.

Can landlords require tenants to have a certain income level?

Landlords can require tenants to have a certain income level as long as the requirement is not discriminatory. Landlords must apply the income requirement equally to all applicants and cannot use income requirements to discriminate against protected classes.

Can landlords charge higher rent to families with children?

Landlords cannot charge higher rent to families with children. This is considered discrimination based on familial status. Landlords also cannot restrict families with children from living in certain areas of the property or require families with children to live on certain floors or in certain units.

Conclusion

Real estate investors in California must comply with the state’s fair housing laws to ensure that everyone has equal access to housing. Violating these laws can result in serious legal consequences and reputational damage. By developing and implementing fair housing policies and procedures, conducting regular audits, and working with a fair housing attorney, real estate investors can reduce the risk of violating fair housing laws and protect their business and reputation.

Kurby Team

The Kurby Content Team is a diverse group of seasoned real estate experts dedicated to providing insightful, reliable information for homebuyers, real estate investors, and real estate agents. With backgrounds ranging from real estate brokerage, property investment, and residential home buying, our team combines decades of experience with a passion for demystifying the real estate world. We at Kurby are committed to helping you make informed, successful real estate decisions. Whether you're a first-time homebuyer, a seasoned investor, or a real estate professional, count on the Kurby Content Team to deliver the most relevant, actionable real estate content you need.