'Room for rent' rules to live by

Rent it Right

By Inman News Feed
Add Comment Add Comment | Comments: 2 | Posted Sep. 10, 2010

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Rent it Right

Janet Portman
Inman News

Q: I own my home and have been recently widowed. I would like to rent an extra bedroom to a roomer, who will share the kitchen, living room and other common areas of the house. I want to make sure that when I advertise and interview applicants, I don't set myself up for a fair housing claim. Do those rules apply to me? --Nancy C.

A: Your question is clear and timely. In our current economic climate, more and more people are saving money by sharing their living space (and, like you, many have personal reasons for bringing in a lodger, too). Unfortunately, the answer to your question is not so clear. In fact, you may find it very unsatisfying. But until the law changes, this is the best I can do.

Under the federal Fair Housing Act, landlords who live in a property with four or fewer rental units (this would include your situation) are exempt from all but one aspect of the federal law: They may not advertise in a way that indicates a preference for (or against) members of a protected class (race, color, religion, national origin, sex, familial status and disability).

And, there is an exception even to the exemption: You may advertise for a lodger of a specific sex (and you don't have to specify your own sex).

So, for example, your ad can say, "Female roomer wanted," but it could not say, "Christian roomer wanted." If you asked a newspaper to print the latter, both you and the newspaper would be in violation of the law. Interestingly, if you placed the same ad on an Internet site that did not channel your specifications in terms of protected classes, you might just get away with it.

In practice, this means that while a landlord cannot practice "advertising discrimination" except on the basis of sex, he can discriminate on the basis of other protected classifications "at the door."

Many states, however, have more complex and restrictive fair housing laws, and this is where my answer becomes somewhat unhelpful. California, for example, also allows landlords who rent to no more than one roomer to advertise for a lodger of a specific sex, and it provides that certain owners who are renting to a "roomer" or "boarder" are exempt from the rest of the prohibitions against discrimination in housing.

But the exemption applies only if the owner makes no "discriminatory notices, statements and advertisements." (See: Gov. Code section Section 12927, subd. (c)(2)(A).)

The key word here, which distinguishes the California rule from the federal, may be "statements." It appears that as long as the landlord remains silent "at the door," he is within his legal rights to turn away an applicant because of race, religion and so on. But once the landlord voices his reasons, he's made a "statement," which deprives him of his exemption from the anti-discrimination law.

No California appellate court has ruled on this issue, however (it's the subject of only one administrative case handled by the Department of Employment and Fair Housing, Department of Fair Employment and Housing v. Melissa DeSantis. FEHC Dec. No. 02-12, Case No. H 9900 Q-0328-00-h, May 07, 2002.)

For this reason, it would be risky for a California owner to rely completely on this reading of the law.

For safety's sake, you'll be on solid grounds if you limit your preference in your ad to a lodger of a specific sex, but do not mention race, color, religion, national origin, familial status or disability; and you conduct your in-person interviewing in a way that's designed to find a solid, stable and compatible lodger regardless of their membership (or not) in a legally protected class.

To be certain of the boundaries that apply in your state, there's no substitute for consulting with a local lawyer well-versed in landlord-tenant law.

Q: I'm about to sign a lease for a small commercial space where I can set up my woodworking business. The lease has a clause in it that says I will be responsible for anybody's injuries unless they were caused by the "sole negligence" of the landlord. I'm a really careful businessman and tenant, so do I need to worry about this? --Wes L.

A: Yes, you do need to worry about this clause. If it's ever tested in court, chances are that a judge wouldn't uphold it. But in the meantime, it could cause you a lot of headaches.

You're dealing with a variation of what's known as an "exculpatory" clause. In its purest form, its purpose is to shift to you the consequences of your landlord's careless acts. So, for example, if your landlord knows about a dangerous condition in your rental and fails to take reasonable steps to fix it, and you or a guest were hurt as a result, an exculpatory clause would presumably get your landlord off the hook.

After reading this description, many readers will conclude, "Not fair!" That's the conclusion of many legislators and judges, too, who have found that these clauses are a bad idea because they operate as a disincentive for landlords to take care of business.

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1. Jane said... on Oct 14, 2010 at 10:10AM

“My husband and I are looking to rent out a few rooms in our house that we currently live in. Are there any permits, certificates and codes we need to obtain or be aware of?”

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2. jessie said... on Jan 7, 2012 at 09:13PM

“I'm a investor from bklyn. and I'm looking to purchase a investment property in Philadelphia and would like to find out can I rent the seven rooms in a one family property. Is it illegal to do so and if not what kind of permits,certificates,and codes I need to be aware of.?”

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