Provided by Fair Housing Instutute
Technology has fundamentally reshaped the way property managers and their staff interact with residents. With new advancements in artificial intelligence (AI), many tools that properties use for payments and resident communication are being upgraded. These innovations offer efficiency and convenience but also raise important fair housing considerations.
Property managers must ensure these tools remain inclusive, accessible, and compliant with fair housing laws. In this article, we’ll explore how AI is reshaping communication and payments in property management—and how to navigate the risks while leveraging the benefits.
The Evolution of Communication in Property Management
AI-powered chatbots and automated messaging systems are becoming the norm, helping property teams respond to resident inquiries, process maintenance requests, and even screen rental applications. While these tools increase efficiency, property managers must be mindful of accessibility challenges and compliance risks, particularly under the Fair Housing Act.
AI-driven communication must be equitable and accessible for all residents, including those with disabilities. Over-reliance on automated digital tools could unintentionally exclude residents who require verbal communication due to visual impairments, speak languages not supported by AI systems, or have limited digital literacy or internet access. Ensuring fair housing compliance means offering multiple communication channels, regularly auditing AI tools for potential bias, and training staff to override AI responses when necessary.
Remember, you understand that compliance is non-negotiable, whereas AI is continually learning. A balanced approach allows property managers to take advantage of AI’s efficiency while maintaining fairness in resident interactions.
The Shift Toward Digital Payments
Property management companies are increasingly moving away from cash and check payments, instead encouraging residents to use online portals, digital wallets, and automated bank transfers. These systems streamline financial operations, reduce late payments, and provide residents with greater flexibility. AI-powered financial tools are now capable of predicting rent payment trends, sending automated reminders, and even offering customized payment plans based on resident behavior. The ability to automate these processes allows management teams to focus on more pressing concerns while maintaining smooth financial transactions.
Despite the benefits, digital payment systems present challenges that property managers must address. Many residents, particularly those from lower-income households, may not have access to online banking or credit cards. Others may rely on government-issued checks or prefer cash payments for personal reasons. When digital payments become the sole method of rent collection, these individuals may face unnecessary barriers.
To remain inclusive, property managers should ensure that multiple payment options remain available to meet the diverse needs of their residents. Moreover, AI-driven payment reminders and automated late notices must be carefully managed to avoid unintended pressure or harassment, which could lead to compliance concerns.
The Risks of AI in Property Management
As AI becomes more embedded in property management operations, it is essential to recognize the potential risks it introduces. AI systems are built on data, and if that data contains inherent biases, the AI may unintentionally perpetuate discrimination. This is particularly concerning in areas such as resident screening, maintenance prioritization, and customer service interactions. When AI is used to assess rental applications, there is a risk that it may favor certain demographic groups based on historical trends rather than making neutral, fair decisions. Similarly, automated maintenance scheduling may inadvertently prioritize certain buildings or residents over others based on flawed algorithms.
To mitigate these risks, property managers must take proactive steps to ensure that AI-driven processes remain fair and compliant. AI systems should be regularly audited to identify and correct any biases that may influence decision-making. Transparency is also critical, as residents should have a clear understanding of how AI is used in property operations, particularly when it affects their housing opportunities. Additionally, human oversight must remain a fundamental part of the process. While AI can enhance efficiency, it should never serve as the sole decision-maker in matters that impact residents’ rights and fair housing compliance.
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Implementing AI Responsibly in Property Management
Responsible implementation of AI requires a thoughtful and strategic approach. Property managers should work closely with technology vendors to ensure that the AI tools they adopt align with fair housing requirements. This includes understanding how the AI’s algorithms function and verifying that they have been tested for potential biases. Relying on third-party software without reviewing its compliance features can lead to unintended fair housing violations, making due diligence essential when selecting AI-powered solutions.
Equally important is the need for ongoing training. Property management staff must be educated on how AI tools operate and how they interact with fair housing laws. Regular training sessions can help teams recognize when an AI-driven decision may be problematic and when human intervention is necessary. AI should function as a support system rather than a replacement for human judgment, and staff members should feel empowered to override AI recommendations when fairness or compliance is at stake.
Continuous monitoring and adaptation are also essential. As AI technology evolves, so do its potential risks and benefits. Regular audits can help property managers assess whether their AI tools are operating as intended or if adjustments are needed to maintain compliance. By staying informed about advancements in AI and fair housing regulations, property managers can ensure that their use of technology remains both effective and ethical.
The Future of AI & Fair Housing Compliance
Looking ahead, AI will continue to play a significant role in property management, with advancements in predictive analytics, automated leasing, and personalized resident experiences. However, as AI becomes more sophisticated, regulatory scrutiny will also increase. Housing authorities and fair housing advocates are already paying close attention to how AI influences rental decisions, and new guidelines may emerge to address concerns about algorithmic discrimination. Property managers who stay ahead of these changes by proactively refining their AI strategies will be better positioned to navigate the evolving regulatory landscape.
The challenge moving forward will be balancing technological innovation with fair housing compliance. AI and digital payment systems offer undeniable benefits, but they must be designed and implemented in a way that enhances, rather than restricts, resident access and equality. The key to success lies in adopting technology responsibly, ensuring transparency, and maintaining a strong commitment to fair housing principles and training.
Conclusion
AI-driven communication and digital payment systems are revolutionizing property management, offering increased efficiency, cost savings, and improved resident experiences. However, these benefits come with the responsibility to uphold fair housing standards. Property managers must take an active role in ensuring that AI and digital tools do not create unintended barriers for residents. By maintaining multiple communication and payment options, auditing AI-driven decisions, and providing ongoing staff training, property managers can embrace innovation while fostering an inclusive and compliant housing environment.
As the industry moves forward, the most successful property management companies will be those that integrate AI and digital solutions thoughtfully enhancing operations while safeguarding the principles of fairness, accessibility, and equal opportunity for all residents.
This article was provided by the Fair Housing Institute.
In 2005, The Fair Housing Institute was founded as a company with one primary goal: to provide comprehensive and engaging fair housing compliance training at a budget-friendly price, all at the click of a button. https://fairhousinginstitute.com/
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Provided by AAOA
Bed bugs were in the news last fall when infestations appeared throughout Europe, particularly in France.
Zachary DeVries, associate professor of urban entomology at the University of Kentucky, recently told Multifamily Dive that the bugs — flat, brown creatures that tend to nest in furniture and feed on human blood — “have been a consistent and steady issue in homes, apartments and hotels since their population in the country surged in the late 1990s, likely owing to an increase in international travel and restrictions on indoor insecticides.”
Bed bugs can nest anywhere, including five-star hotels and first-class airline seats, but infestations are most commonly seen in low-income housing. DeVries owes this phenomenon to the cost of removing bed bugs, especially when that burden is placed on residents.
Bed bugs feed on human blood and can cause redness, itching, and allergic reactions. They can travel from one apartment to another, making it hard to get rid of them. If the landlord is not informed of the bed bugs’ presence, the tenant may risk getting evicted for failure to maintain a clean living environment.
How to prevent the spread of bed bugs
One important thing to impress upon residents is the danger of bringing in secondhand furniture, particularly if it’s been sitting outside. “That’s probably one of the easiest ways that [bed bugs] get brought in,” DeVries said.
Ben Hottel, entomologist at Atlanta-based pest control company Orkin, suggests the following strategies that properties can use to prevent bed bug infestations:
- Conduct regular inspections. “It’s best to first look for actual live bed bugs [first] and then signs of bed bugs such as blood stains, fecal matter and discarded exoskeletons,” Hottel said, noting that these signs could also be attributed to other insects.
- Promote cleanliness. Hottel recommends encouraging regular vacuuming and washing of bedding.
- Eliminate hiding places. This includes filling in cracks in plaster or drywall, removing wallpaper and repairing loose molding.
- Encourage residents to use special bed covers. These are designed to protect mattresses and box springs, and to make inspections and treatments easier.
It is a tenant’s responsibility to report the presence of bed bugs as soon as they are discovered. In turn, the landlord is legally responsible to quickly take appropriate measures to eliminate the bugs. They must take the issue seriously, respond swiftly and provide their other tenants with information about the bed bug infestations and their eradication since bed bugs can travel from one unit to another, making it very hard to get rid of them.
Legally, landlords are responsible for covering the costs of bed bug elimination. In some states, tenants have the right to withhold rent until the landlord fully resolves the bed bug issue. Tenants can also demand compensation from the landlord for the loss of personal belongings damaged by bed bugs or to cover any expenses incurred in temporarily relocating.
The legal and health issues roaches bring with them
By law, landlords must maintain a healthy, habitable living environment for their tenants, which includes ensuring there are no pest infestations. Neglecting to handle a roach infestation can lead to legal trouble, with tenants possibly suing for breach of contract or negligence.
In addition to their legal obligations, landlords may face code violations and fines from local health departments if they fail to keep their rental properties free of roaches. As a result of these violations, landlords may face hefty fines, legal action, and in extreme cases, property condemnation.
Cockroach infestation has little to do with cleanliness and mostly to do with how many are in the building. Roaches can cause many health issues for tenants, including asthma and other respiratory problems. As roaches crawl around, they tend to transport bacteria, germs, and diseases from one surface to another, including the surfaces in rental properties. They have the potential to transmit salmonella, e. coli, and other harmful bacteria, leading to food poisoning, diarrhea, and other infections. They can also trigger allergies in some people, causing sneezing, runny nose, itchy eyes, and skin reactions.
The only real method of eliminating roaches is to tent the entire building and fumigate, and landlords rarely want to do that due to the expense.
According to RentVision, if a tenant has notified their landlord of a roach infestation and the landlord fails to take corrective action within a reasonable amount of time, the tenant may be able to stop paying rent without penalty. This is known as “rent withholding,” and it is a legal option for tenants who believe their landlord has violated their right to a habitable living space.
How can I know if my rental has termites?
Termites are destructive pests that can cause significant damage to the structure of a building and can also pose health risks to its occupants. If your rental property has a termite infestation, your tenants have the right to take legal action against you.
According to Rental Awareness, termites are small, wood-eating insects that live in colonies, thrive in moist environments and feed on cellulose materials, which are commonly found in wood structures. Due to their ability to remain hidden and their insatiable appetite for wood, termite infestations can go unnoticed for long periods, causing significant damage to the infrastructure of a property.
If you want to determine whether your rental property is infested with termites, there are several signs you should look out for:
- As termites consume wood, they can cause wooden fixtures to warp, leading to difficulties in opening or closing windows and doors.
- When termites swarm, they shed their wings, which may be found near windowsills, light fixtures, or other areas where they are attracted to light.
- Termites build mud tubes to travel between their nest and food source. These tubes are typically brown or gray and can be found along walls, foundations, or other surfaces.
- Termites feed on wood, causing significant damage over time. Look out for wooden structures that sound hollow when tapped or have a honeycomb-like appearance.
- Termite droppings, also known as frass, resemble tiny wood-colored pellets. They may be found near termite tunnels or other areas infested with termites.
- Inspect the interior of your rental property. Pay close attention to areas where there is wood, such as baseboards, windowsills, door frames, and wooden furniture.
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What is a landlord’s exposure with regard to infestations?
Landlords often try to blame their tenants for an insect infestation. However, an infestation of bed bugs, cockroaches or termites is not an issue to be ignored and legally you are bound to address the issue properly. If you fail to deal with the situation and/or do not compensate your tenant for the damages and losses incurred, they may file a lawsuit against you.
Per Rental Law Awareness, while the specific provisions can vary, they typically outline the duties of landlords to mitigate, control, and remediate termite infestations. Violation of these laws can result in legal consequences for the landlord.
The specific duties may vary depending on local laws and regulations, but generally, landlords are expected to:
- Maintain the property in a habitable condition, free from infestations that can affect the health or safety of the tenants.
- Take prompt action to eradicate the insects and prevent further damage.
- Conduct regular inspections to identify and address any signs of bed bug, roach and termite activity.
- Provide necessary repairs and treatments to eliminate the insects and restore the property to a habitable state.
If a landlord has been unresponsive or negligent in addressing the infestation problem, poses a risk to their tenant’s health and safety, or refuses to compensate them for damages caused by the infestation, it may be necessary for the tenant to pursue legal action.
If the landlord fails to address the bed bug infestation, the tenant may be able to terminate the lease without penalty. They can also file a complaint with the local health department or the housing authority. In some cases, tenants may need to escalate disputes to small claims courts or hire legal representation to file a lawsuit against the landlord for breach of contract.
Disclaimer: All content provided here-in is subject to AAOA’s Terms of Use. Nothing contained on this website constitutes tax, legal, insurance or investment advice, nor does it constitute a solicitation or an offer to buy or sell any security or other financial instrument. AAOA recommends you consult with a financial advisor, tax specialist, attorney or other specialist who is able to properly advise you.
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Provided by Rentredi
If you have good tenants who look after your property well, pay the rent on time, and don’t receive any complaints from the neighbors, you’ve won the jackpot!
Great tenants make your life easy but they can be hard to come by. So, it’s no surprise that you want to retain them long-term.
In this article, we will share our Landlord Checklist for high tenant retention rates and demand. We hope that it helps you secure great tenants who stick around for the long term.
The Benefits of High Retention Tenants
Here we’ll cover some of the benefits of high retention tenants.
Source: Rental Housing Journal
Regarding fire safety, properly operating smoke detectors is one of the most essential tools for alerting property owners and firefighters of dangerous home and apartment fires before they happen.
They are a simple tool that saves lives.
According to the National Fire Protection Association, “Roughly three out of five fire deaths happen in homes with either no smoke alarms or no working smoke alarms.”
This means that the risk of death from a residential or apartment fire is cut in half in homes with operable smoke alarms. In states such as Arizona, where I work, rental property owners must provide smoke detectors to their tenants. However, fire safety requires more than just installing smoke detectors on your property: You must also maintain them. Doing so will keep your property and, more importantly, your tenants better protected against fires.
Here are a few tips from an Arizona fire protection expert on maintaining smoke detectors.
Source: liveaboutdotcom
Legal Reasons to Go to Court
Conflicts between landlords and tenants cannot always be easily worked out. Sometimes, the only way to resolve the issue is in court. There are many times a landlord has a legal right to sue their tenant. Here are twelve reasons a landlord can bring a tenant to court.
Why Would a Landlord Sue a Tenant
Filing a lawsuit against anyone can be a stressful experience, but it does have certain advantages.
- Tenant Could Settle to Avoid Court: The first advantage, and the one many people hope for when filing a lawsuit, is that the case will never actually go to court. The hope is that, after receiving the court summons, the tenant will want to avoid the hassle of going to court and potentially losing anyway. They would rather pay the amount the landlord is requesting or compromise on paying a lesser amount that the landlord agrees to accept. This would also keep the tenant’s name off the court records.
- Recover Money Owed: Sometimes taking a tenant to court is the only way to receive the money you are owed from the tenant. If a tenant does not believe they are responsible for paying for damages at the property, it can be very difficult to get them to pay the money unless they are legally obligated to do so.
- Receive Additional Damages: In court, you can sue the tenant for the actual money you are owed, but also for additional damages. For example, if a tenant breaks their lease and moves out early, you can sue them for the rent that is due for the remainder of the lease and potentially the costs associated with finding a new tenant to fill the vacancy.
- Clear Your Name: Suing your tenant and winning will provide legal proof that you were in the right.
- The Case Will Be on Record: You will have a record that you won a court case against your tenant. This can be beneficial if the tenant ever tries to sue you at some point in the future. A victory will also show that you are a landlord who follows the law and knows the proper procedures and practices for running a rental property.
Risks of Taking a Tenant to Court
There are advantages to suing your tenant, but a landlord must also understand the risks involved. There is no guarantee of victory and you could trigger a counterclaim from your tenant.
- You Could Lose: Filing a lawsuit is not a guarantee that you will win the lawsuit. You could spend your time, energy and money going to court and still lose.
- Could Win, But Never See the Money: You could be awarded the money owed to you by the court, but you may never actually collect this money. Although the tenant will now have a judgment against them, you could be trying to chase the tenant down for years to collect the money you are owed.
- Cost: Whether you win or lose, there will still be costs involved with going to court. You will have to pay a court fee just to file your case. This fee varies widely by jurisdiction. Depending on the nature of your case, you may also have to hire an attorney to represent you, which can get very expensive very quickly.
- Tenant Could Countersue: By initiating a lawsuit, you could anger your tenant, leading them to countersue. You could wind up losing the lawsuit and then have to pay even more money to the tenant in damages and attorney’s fees.
Is Suing the Only Option?
Instead of filing a lawsuit, a landlord can send a demand letter to the tenant in the hopes that it will be enough to get the tenant to pay what they owe. This letter may be intimidating enough to avoid a court battle. A landlord can also decide to do nothing and chalk up any losses as a learning experience.
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12 Reasons You Can Sue Your Tenant
There are endless reasons that you can take a tenant to court. Some of the more common reasons a landlord can sue a tenant include:
- Unpaid Rent: If a tenant has not paid their monthly rent, you can first send them a notice to pay rent or quit. If that does not work, you can file to evict the tenant. At the same time, you can also sue them for any rent they owe.
- Unpaid Utility Bills: If there are any outstanding utility bills at the rental property in the tenant’s name, you can sue the tenant to recover this money. Often, you can deduct this amount from the tenant’s security deposit. If the security deposit is not enough to cover the expense, you can sue in small claims court to recover the rest.
- Damage to the Property: A landlord can sue a tenant if the tenant has caused damage to the property. Again, you can start by deducting the amount of damage from the security deposit. If the security deposit does not cover the amount of damage done, you can take your tenant to court to hopefully get the rest of the money you are owed.
- Unapproved Alterations to the Unit: If the tenant has made changes to the unit without approval, you can sue the tenant to recover the money it will take to restore the unit to its original condition.
- Tenant Owes More Than Security Deposit Amount: If you have taken the maximum amount of deductions from the tenant’s security deposit, but they still owe more, you can try to recover the rest in small claims court.
- Countersue for Security Deposit: A tenant may sue if they believe you wrongly withheld their security deposit. In this case, you can countersue to show you had every legal right to withhold or make deductions from their deposit.
- To Recover Lost Rent From an Illegal Move Out: If the tenant moved out before their lease was actually up, you can take them to court to recover the rent they owed for the remaining time on their lease.
- To Recover Costs to Find a New Tenant After Illegal Move Out: Some states will also allow you to pursue a tenant who has moved out early for the additional expenses you may incur trying to find a new tenant for the unit. This could include things like marketing costs and utilities.
- Expenses to Dispose of Tenant’s Abandoned Property: You can sue a tenant for the cost to dispose of or to store their abandoned property.
- Tenant Used the Property for Illegal Dealings: If a tenant used the property for some illegal means, you can sue them to recover damages.
- Illegally Have a Pet: If you have a no pets policy and you find out the tenant has an animal, you can sue them for damages and for any additional damage the pet has caused at the property.
- Other Breaches to the Lease Agreement: If the tenant has broken any other clause of the lease and it has caused you monetary, emotional or physical harm, taking the tenant to court could be the way to collect the money owed to you.
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Posted by Livable Content Team
Extreme weather events are becoming more frequent and severe, affecting communities worldwide. Property owners and managers are increasingly forced to adapt to unpredictable conditions, from heatwaves and hurricanes to prolonged droughts and heavy storms. As climate change accelerates, its impact on the housing industry and utility management is undeniable. Understanding these shifts and implementing resilience strategies is essential for maintaining sustainable, efficient, and cost-effective property management practices. In this article, we explore how changing weather patterns affect property operations and what can be done to prepare for an uncertain future.
The Rising Costs of Climate Change
Extreme weather events not only cause physical damage to buildings but also lead to increased operational costs, insurance premiums, and utility expenses. Heatwaves, for example, drive up cooling costs, while flooding events strain drainage systems and require costly repairs. Hotter summers result in significantly higher air conditioning usage, impacting energy efficiency and driving up utility bills. Severe storms and flooding pose risks of structural damage that can require long-term maintenance expenses. Meanwhile, drought conditions in some regions contribute to rising water costs and limit availability for residents. To mitigate these growing costs, property owners are investing in climate-resilient infrastructure, improved water management, and energy-efficient systems to ensure long-term sustainability.
Sustainable Building Practices for a Resilient Future
Sustainable and climate-conscious construction methods are essential for adapting to extreme weather. Energy-efficient and water-conserving buildings not only reduce operating costs but also contribute to long-term environmental stability. Green roofing and improved insulation help regulate indoor temperatures, reducing reliance on heating and cooling systems. Stormwater management systems prevent flooding by collecting and repurposing rainwater for landscaping. Energy-efficient windows and doors minimize heat loss in winter and reduce cooling demands in summer. New construction codes and policies are increasingly requiring sustainable building materials and energy-efficient designs. Property owners who adopt these practices early will benefit from lower operating costs, improved tenant retention, and compliance with evolving environmental regulations.
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Water Conservation Strategies in an Era of Drought
Water shortages are becoming a global crisis, and property managers must find ways to conserve water while maintaining tenant comfort. Implementing water-efficient solutions ensures long-term cost savings and sustainability. Low-flow fixtures, such as water-efficient faucets and showerheads, can significantly reduce consumption without compromising functionality. Smart irrigation systems that use sensors and timers prevent overuse while maintaining healthy landscaping. Drought-resistant landscaping with native plants can further minimize outdoor water needs, reducing dependency on irrigation systems. With water rates continuing to rise, conservation is no longer just an environmental responsibility but a financial necessity. Investing in water-saving technologies and policies can help property owners avoid costly regulatory penalties and long-term operational expenses.
The Role of Utility Management in Climate Adaptation
As climate change increases energy and water demands, efficient utility management becomes more critical than ever. Property managers can adopt modern billing and conservation strategies to reduce costs and encourage responsible usage among tenants. Smart metering and monitoring systems help detect leaks and energy waste in real time, allowing for quicker intervention and cost savings. Utility cost allocation programs ensure tenants are responsible for their own usage, discouraging excessive consumption and promoting mindful energy use. Renewable energy integration, such as solar panels and battery storage, provides an opportunity to offset rising energy costs while reducing reliance on traditional power sources. By aligning property management strategies with climate adaptation, landlords can stay ahead of emerging environmental regulations while ensuring long-term financial stability.
The Need for Climate-Resilient Property Management
Climate change is reshaping the way properties are managed, from rising utility costs to the need for sustainable building solutions. By investing in energy-efficient infrastructure, implementing smart conservation practices, and improving utility management, property owners can ensure long-term financial stability while contributing to a more sustainable future. Understanding where climate-related inefficiencies exist and taking proactive steps to address them will be key to maintaining resilient and profitable properties in the years to come.
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By Richard Berger
California is preparing for new move-in, move-out documentation law that requires landlords take photos of rental units before and after a tenant moves in. Digital photography and storage through property management software could help.
A layer of complexity will be added to onsite and maintenance teams in California regarding move-ins, move-outs, and security deposits when California law Assembly Bill (AB) 2801 goes into effect this year.
The new documentation law requires landlords to take photos of rental units before and after a tenant moves in. The law also requires landlords to provide these photos to tenants along with any itemized deductions.
Apartment owners or management companies must take high-resolution, date-stamped photos of the unit before the tenant moves in and immediately after the tenant moves out.
Beginning April 1, an owner or management company must take photographs of the unit within a reasonable time after the possession of the unit is returned to the owner/manager but before any repairs or cleanings for which the owner/manager will deduct from the deposit are completed, and that the owner/manager take photographs of the unit within a reasonable time after the repairs or cleanings are completed.
Owners must take photos of the unit after repairs or replacement items such as appliances are complete or the new item is installed.
AB 2801 takes effect for move-ins on or after July 1, 2025.
AB 2801 also imposes stricter limits on security deposit deductions. It clarifies what qualifies as “reasonably necessary” charges for cleaning and repairs
The bill restricts any deductions taken by a housing provider against a tenant’s security deposit, limiting such deductions to reasonable amounts and repairs that are “reasonable and necessary” to restore the premises to their condition before the tenancy, except for ordinary wear and tear.
Assembly Bill 2801 prohibits operators from deducting the cost of professional services such as professional carpet cleaning, unless reasonably necessary.
“In the long run, this is going to help reduce disputes,” Kim Arnold, Vice President – Management, Atlantic Pacific Management, said.
Arnold said her on-site team would handle the photography during the initial walk-through, and her maintenance team would handle the photography at the move-out stage.
Her firm operates 2,500 units in San Diego and Riverside County with an annual turnover rate of 24.1 percent, well below the industry average of 50 percent.
Her teams also must manage the process, such as labeling the photos and downloading and preserving the images.
Mobile maintenance apps have grown in popularity in recent years. Software tools such as AppWork and others streamline and simplify the process, allowing digital photography and storage to be handled through an onsite team member’s company-issued phone.
“The move-out post-repair photos will be the most difficult logistically and administratively because, for example, when replacing a stove, the new stove doesn’t always arrive within 21 days, so you must wait for it,” Arnold said.
“In the end, we don’t want to go to small claims court over security deposit complaints. We give our managers a lot of latitude when deciding how to handle the situation. We haven’t been to court in eight or ten years.”
The documentation law, AB 2801, could create unnecessary delays in the turnover process, directly impacting unit availability and operational efficiency. According to Sean Landsberg, CEO of AppWork, the key will be leveraging technology to streamline photo capture, organization, and retrieval while minimizing disruptions to day-to-day maintenance work.
“Meeting the requirements of AB 2801 means going beyond just taking photos, it requires a structured process for taking, storing, and accessing images efficiently,” Landsberg said.
“Maintenance software allows teams to capture high-resolution, time-stamped photos directly within a work order, automatically linking them to the unit’s history for easy compliance. By automating this process, operators can ensure they meet legal requirements while keeping their teams focused on core maintenance responsibilities rather than administrative tasks.”
Windell Mollenido, VP of Marketing & Technology, REMM Group, called AB 2801 a big deal.
“That’s going to take a lot of time for our maintenance and onsite teams,” he said. “It’s almost as if they have to record a virtual unit tour with their smartphones. That’s not to mention having to label the images, upload them to our property management platform, and manage them.
“This is not exactly what we have in their job descriptions. They’ll need to focus on taking consistent images – that means focusing on the right things and not blurry. We’d rather have them spend more time maintaining our apartments by handling work orders.”
REMM manages approximately 6,000 apartments throughout Southern California – from San Diego to Los Angeles to the Inland Empire.
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By Kathelene Williams
As affordable housing remains a challenge across the U.S., fair housing laws aimed at preventing discrimination against low-income applicants have gained attention. Though not federally protected, the source of income discrimination is being addressed at state and local levels, particularly as it relates to residents relying on government subsidies or housing vouchers.
Coupled with the issue of “steering,” these practices not only violate fair housing principles
but also perpetuate inequality, thereby affecting the vulnerable populations most in need of
housing opportunities.
Steering occurs when housing providers subtly direct potential residents to or away from specific housing options based on income, race, or other protected characteristics. Despite being illegal, this practice often results in economic or racial segregation.
With increasing scrutiny on such behaviors, housing providers must be vigilant in their application processes, ensuring that they don’t inadvertently participate in discriminatory actions that violate both ethical standards and legal obligations.
UNDERSTANDING THE LEGAL LANDSCAPE
Discrimination based on income source is becoming an area of heightened legal focus. While
the Fair Housing Act protects individuals from discrimination based on race, color, religion, sex,
disability, familial status, and national origin, it does not directly address the source of income.
However, an increasing number of states and local jurisdictions have taken proactive steps to address this gap by passing laws that prohibit housing discrimination based on income source, particularly in relation to housing vouchers or government assistance programs such as Section 8.
In these regions, it is illegal for property managers to refuse an application solely because a potential resident’s rent payment comes from a subsidy program. This means that landlords and housing providers must accept all legal forms of income as part of their applicant’s financial qualifications and may not exclude individuals simply because their income comes from non-traditional sources, such as government programs.
STEERING AND ITS DETRIMENTAL EFFECTS
While discrimination based on source of income is overtly unlawful in areas where it is protected, steering is a more covert form of housing discrimination that can be harder to identify and combat. Steering typically manifests as subtle suggestions or behaviors that guide individuals away from certain properties or neighborhoods based on perceptions of their financial status.
Housing providers may not directly say that a unit is unavailable to someone with a low income, but they may recommend different properties they perceive as “more appropriate” for that individual.
Steering is harmful because it reinforces housing segregation and limits choices for residents,
especially those from lower income backgrounds. Furthermore, it violates fair housing laws and can lead to significant legal and financial repercussions for housing providers who engage in this practice, whether consciously or unconsciously.
BEST PRACTICES FOR PROPERTY MANAGERS TO AVOID DISCRIMINATION AND STEERING
To avoid both overt and subtle forms of discrimination, property managers must adopt clear and unbiased practices in resident screening and communication.
Below are some essential best practices that housing providers can follow to ensure fairness in their processes:
✔️ Property managers should implement standardized, objective resident screening
processes that are applied uniformly to all applicants.
✔️ They should ensure clear communication of financial requirements like income
to-rent ratios without excluding legal income sources, such as housing vouchers.
✔️ They must also stay informed of local laws regarding sources of income
discrimination and adjust policies to remain compliant.
✔️ Regular training is essential to avoid steering and ensure fair treatment for all applicants.
Additionally, internal audits help monitor compliance and a commitment to diversity fosters inclusive housing environments for individuals from all financial backgrounds.
CONCLUSION
As the legal landscape continues to evolve, housing providers must remain diligent in their
efforts to avoid both income-based discrimination and steering. Property managers who operate with transparency, fairness, and respect for the law are not only protecting themselves from legal risk but are also contributing to the creation of equitable housing opportunities for all.
By understanding and complying with local regulations, offering training on steering practices, and implementing fair screening processes, housing professionals can ensure they are fostering an inclusive and fair housing environment.
In this way, the entire housing industry can contribute to a more just and equitable system, where residents are judged on their ability to pay rent—regardless of the source of that income—and have equal access to housing opportunities across all neighborhoods and price ranges.
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Written by Emily Koelsch
“Renters by Choice” is a relatively new and increasingly widespread phrase. It’s a broad term that refers to anyone who chooses to rent for reasons besides financial necessity.
Recent data indicates that more people choose to rent for the long term. These tenants no longer see renting as just a stepping stone towards homeownership.
Renters by choice are ideal tenants for most Landlords. They’re financially stable and want longterm Lease Agreements in class A properties. As a result, real estate investors should pay attention to this trend and consider it when making investment decisions.
To help you do that, here’s an overview of the movement towards renting by choice and some ways it will impact investors.
What Does It Mean to Be a Renter by Choice
A renter by choice is someone who has the financial resources to purchase a home but chooses not to. It’s important to note that people in this category don’t necessarily have the means to purchase a home in the same market where they’re renting. However, they do have the resources to purchase a home and have housing choices.
There are many reasons people opt to rent rather than purchase a home. Some of the most common are:
- Flexibility and not being bound to a mortgage
- Not wanting to deal with the headaches and expense of home maintenance
- Running the numbers and deciding renting is a better financial option
- Enjoying the amenities and services that come with some rental units
- Enjoying the community and social aspect of multi-unit buildings
- The flexibility that comes from being able to “lock it and leave it”
While many different reasons push people to decide to rent, rising home prices and rising mortgage expenses are at the center of this decision. As the cost of homeownership continues to rise, it’s forcing people of all ages to reexamine their goals and look for alternatives to purchasing a home.
How Common Is the Trend of Renting by Choice
A 2024 Entrata survey of 2,000 renters showed some noticeable shifts in the mindset of renters. Of the 2,000 tenants surveyed,
- 41% said homeownership is no longer part of their idea of the American dream
- 20% said they plan to be renters for life
- 17% said they prefer renting because they’re not bound to a mortgage.
These results differed from previous years and indicate some clear shifts around the idea of homeownership. When analyzing this data, it’s important to note that all renters surveyed live in large multi-unit buildings in urban areas. It seems clear that renters in high-density, urban areas are changing their views on homeownership and renting.
Thus far, it’s less clear how much this change impacts renters and buyers in smaller and more rural areas. Time will tell whether this trend extends to all areas of the country or is unique to urban areas. Regardless, there are more renters today than any period since 1965 and nearly one third of renters have housing choices.
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How This Cultural Shift Impacts Real Estate Investors
Renters by choice are an excellent group for investors to target when purchasing or upgrading properties. Here are a few things to help your properties attract renters by choice:
- Properties in desirable mid-sized cities where renting is socially accepted and financially appealing will attract tenants who are renting by choice.
- Investors can target rent-by-choice baby boomers by offering more space and storage than other rentals on the market. This group wants at least 3 bedrooms, storage space, and parking for two vehicles.
- Investors can target rent-by-choice millennials by offering amenities and having properties near restaurants and entertainment.
- Rental properties must be priced competitively to attract renters by choice. Despite the many factors impacting housing decisions, the cost of homeownership is ultimately what is leading people to opt to rent. Overpricing a rental unit will drive away renters by choice.
- Consider single-family built-for-rent properties. More homebuilders are developing build-for-rent communities, that specifically target people who plan to be lifetime renters.
- Prioritize good property management and landlord-tenant communication. Tenants who are happy in their property are increasingly choosing to stay for the long term.
Maximize Your Rental Returns
While some areas are more impacted by this trend than others, renting by choice is increasingly common across the country. Investors in urban areas and desirable mid-size markets are particularly well-positioned to attract people who want to be longterm renters.
Once you find an investment property, ezLandlordForms can help you get the most out of it. We’re here to support you through every phase of the Landlord lifecycle, including Tenant Screening, Lease creation, and rent collection.
Create an account today and let us be the property management partner you need.
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By Ryan Squires
The question of how to rent out your house might arise due to a move, financial reasons, or an emotional attachment to the property that keeps you from selling it.
The process can be daunting, though. There are legal elements to understand, tenants to screen, and home improvements to ensure your rental is competitive and attractive to applicants.
Don’t let fear of the unknown stop you. There are tricks and tools available that make home rental a breeze. Property management software like TurboTenant can streamline your workflow to take much of the work off your plate.
Below, we’ll take a deep dive into:
- Not only how to rent out your house but how to rent out your house effectively and efficiently
- How landlord-tenant laws can impact your rentals
- How to find, screen, and place tenants
- The pros and cons of property management
- The steps you can take if you want to learn how to rent out your house and not drive yourself crazy in the process
In this guide, we’ll look at how to rent out your house in 12 easy steps.
Renting Out a House: Benefits and Drawbacks
Let’s review some of the most common pros and cons that we hear from both first-time and veteran landlords, which can hopefully point you in the right direction for your own house rental experience.
Benefits of Renting Out a House
When you’re determined to learn how to rent out your house, it can be tempting to focus on the positives initially — and there are plenty! Renting out property can be a fantastic source of passive income, helping you retain property over the long term and providing valuable insights into property management. As a result, you may feel confident using property management software to handle the tasks yourself rather than hiring a property manager.
Let’s dive into some of the benefits you’ll experience when renting out your house.
1. Maintain Ownership
There might come a time after purchasing a home that you’d like to move, can’t afford to own two homes at once, and don’t want to sell your property. Renting out your house means you can generate income to buy a new home without selling anything or giving up a great interest rate. This approach allows you to maintain flexibility while benefiting from the investment opportunities a rental property provides. Many landlords have realized that renting their house keeps more long-term options open and on the table.
2. Create Passive Income
Renting out your home can generate extra income, which aids in covering property costs while contributing to long-term financial stability with minimal ongoing effort. After preparing your property and securing a tenant, the required attention significantly decreases, allowing you to focus on other interests or expand your property investment portfolio.
The workload lessens when you incorporate property management software into your workflow.
3. A Chance to Grow
While some skills are easy to learn from a book, learning property management is best done through hands-on experience. From handling tasks like tenant screening, financial accounting, maintenance and repairs, and lease management, you’ll quickly receive a crash course in property management.
The experience you gain after managing your first property or two helps you move from asking yourself, “How do I rent out my house?” to “How many houses can I rent out?”
Drawbacks of Renting Out a House
While there are several clear benefits to learning how to rent out your house, it’s also worth considering the other side of the coin. Becoming a landlord can be a time-consuming and expensive hobby, with tenants and personalities to manage, problems to solve, and expenses to consider.
1. Staying Current with Laws
One of the key components of renting out your house that we’ve already discussed is the existence of landlord-tenant laws. These laws can be tricky to navigate, and they’re constantly changing, so ensuring you fully understand the federal, state, and local guidelines is paramount. There could be serious consequences for landlords who run afoul of these statutes, not to mention potential reputational or legal risks.
Since landlord-tenant laws can change from year to year, make sure you pay attention to what’s happening in your property’s area. Keeping your finger on the legal pulse is one of the most important aspects of managing property.
2. Creating More Work for Yourself
When you consider how to rent out your house, it’s easy to forget how much time tasks can take from your day-to-day schedule. Finding leads, screening tenants, showing property, managing maintenance, and collecting rent can quickly pile up on your to-do list, and it might be hard to find enough time in the day. And if managing the property isn’t your main gig, adding more to your plate could quickly become untenable.
If you’re not ready for the time commitment it might take to launch your investment business, property management can quickly become a demanding and stressful experience.
3. Financial Challenges
The real estate market can sometimes be an adventure, with house prices fluctuating and interest rates constantly changing. Many landlords wonder how to rent out their houses in times of financial uncertainty, but there is never a clear answer.
However, while property ownership is generally a solid and reliable investment, unforeseen expenses and challenges can arise at the most inopportune times. Even with careful financial planning, there’s no guarantee that renting out your house will be immediately profitable.
From external challenges, like weather and natural disasters, to other challenges, like tenants breaking a lease early and unexpectedly, new costs and expenses can pop up when you least expect it, causing high stress and a financial burden.
12 Steps to Renting Out Your House
Renting out a house for the first time can be either a key first step into large-scale landlording or a small step into casual property management. Either way, understanding how to rent out your house begins with preparing yourself and your property to comply with local laws while creating an attractive package for renters.
Key steps include setting a competitive price, advertising to the market you want, screening and approving new tenants, lease signing, and arguably the most important part of renting out a house, collecting rent.
Now, let’s dig into the details.
1. Learn the Relevant Laws
When wondering how to rent out your house, it’s easy to skip over a crucial first step — understanding and complying with local, state, and federal landlord-tenant laws.
One of the most important laws to understand at the federal level is the Federal Fair Housing Act. This law aims to keep housing as fair as possible and requires landlords to avoid discrimination in advertising rentals or accepting tenants. This means landlords can’t use criteria like race, sex, or religion to decide who to rent their property to.
All of this is to say that landlords must stay current on landlord-tenant law. TurboTenant offers updates on new changes to local, state, and federal laws and provides legally compliant lease agreements for all 50 states.
2. Use Landlord Insurance
Landlord insurance protects against unexpected events like property damage or tenant disputes. Unlike standard homeowners or renters insurance, landlord insurance specifically fits the needs of rental property owners, covering risks like property damage, liability claims, or loss of rental income in specific circumstances.
Landlord insurance comes in various types and can safeguard you from a number of challenges that may arise when renting out a house. While TurboTenant doesn’t directly offer landlord insurance, we partnered with Steadily to help landlords choose the best insurance for their needs.
3. Set Your Rent
To successfully rent out your house, first ensure that your property is legally compliant and market-ready. The next step involves researching and establishing a competitive and profitable rental price.
The best way to determine a competitive rent price is to closely examine local listings similar to your property, assessing the features, amenities, and similarities/differences to determine where to set the price. It’s important to also factor in the square footage and condition of the property to establish the proper benchmark. TurboTenant offers a rent estimate tool that can help you streamline the process.
Once you’ve done the legwork, find the amount that will cover your costs — things like mortgage payments, property taxes, insurance, and ongoing maintenance are necessary to factor in when setting the price. Striking the right balance between a competitive market rate and profit will go a long way toward setting you up for long-term prosperity.
4. Create a Compelling Listing
Crafting a compelling property listing with clear images and detailed information about the property will attract better tenants and more inquiries. Visually showcasing the property’s highlights and best features is one of the best ways to show off your home.
Follow that up with a well-thought-out description of the property, using detailed and creative language to excite potential applicants and encourage them to apply. Don’t be afraid to check out other listings to get a feel for the kind of descriptions that other landlords use and then enhance those for your own benefit.
Once you have a listing you like, post the ad to a listing service to start farming for leads. Ideally, you will post your ad on several platforms in order to maximize the listing’s visibility. TurboTenant features an automated advertising tool that distributes your listing to dozens of major rental websites, like Redfin, Apartments.com, Craigslist, and more.
And if you experience writer’s block, consider using our AI property description tool to help you draft your next description fast.
5. Sort Through Applicants
The transition from “how to rent out your house” to “how to select the right tenant” isn’t a straight line. Now that you (hopefully) have a pile of applications stemming from your listing, getting through the stack as quickly as possible can reduce the amount of time your home is vacant while ensuring you get the right candidate before they sign elsewhere.
Digital tools help speed up the review process, organizing information efficiently to increase efficiency and reduce the time it takes to pull everything together. TurboTenant’s free online application tool simplifies the application and review process by keeping everything in one easy-to-find location.
6. Screen Each Tenant
Screening tenants involves looking into the past to help guide the future. In a thorough report, you’ll find credit, background, and eviction histories, as long as your area permits you to review this information. Detailed information provides peace of mind to landlords, who can feel more secure knowing they’ve selected the most qualified applicant. However, it’s also essential to steer clear of discrimination during this process by consistently evaluating every tenant with the same criteria.
Consider TurboTenant’s comprehensive screening service, which includes credit checks, criminal history, and past evictions. Plus, it’ll help you avoid discrimination lawsuits by enabling you to apply the same criteria to every applicant.
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7. Create a Solid Lease
Once you’ve found the right tenant, a clear and concise lease agreement is your first line of defense against tenant disputes or conflicts. It’s essential that a lawyer review your lease and that it follows all federal and local landlord-tenant laws to be legally compliant.
Since the lease is the defining document in renting out your house, you’ll want to ensure that it includes key clauses about maintenance responsibilities and utilities, pet policies, late fees, and anything else that should be called out for your rental. The lease should avoid any prohibited clauses or language to prevent it from being declared void or unenforceable.
We want to help make this process easy for you. TurboTenant offers landlords fully customizable lease agreements that have been legally reviewed and lawyer-approved to ensure full compliance across the United States.
8. Move-In Time
The next step in learning how to rent out your house is actually renting out your house! You’ve selected an applicant, so now it’s time to review and sign the lease, walk through the property with the tenant one last time, and then hand over the keys.
You can now explain your expectations for the new tenant and how you’ll address their needs. Ideally, this is all captured in the lease agreement, which is a legally binding contract that aims to reduce miscommunication and put all parties on the right track.
TurboTenant features a lease management system that allows everyone to sign the lease electronically and store it in a centralized location within the platform if anyone needs to review any of the terms.
9. Collect Rent Securely
One of the reasons many people want to learn how to rent out their house is for passive income. As such, rent collection is one of the most important aspects of renting out a house. You won’t be in business for long without a solid rent collection process!
Regardless of how many homes you manage, directing all rent payments to an online collection system is one of the most convenient and secure ways to collect.
Not only can TurboTenant manage leases, screen tenants, and advertise your rentals, but it can also collect rent through a powerful rent collection system. This tool allows for secure online payments and enables landlords to send out automatic reminders leading up to the due date, which reduces late payments and keeps everyone on the same page.
10. Use Maintenance Tracking Tools
Managing maintenance effectively is a good way to ensure your properties are ready to rent for the long term. Between ongoing, routine maintenance tasks and tenant requests, staying on top of repairs can keep costs down and tenants happy. A maintenance tracking system can help you stay organized and ensure that any issues are resolved promptly.
Managing a backlog of maintenance requests efficiently can be challenging, so TurboTenant has developed a robust maintenance management tool that can help landlords manage and track maintenance requests, assign vendors, and track costs.
Ultimately, keeping rental units in good repair can quickly balloon costs, so a powerful maintenance tracker can help keep costs down while fixing problems as quickly as they arise.
11. Foster a Positive Relationship
The first thing you thought of when you were wondering how to rent out your house probably wasn’t how to build trust with your tenants. But when you think about it, great communication and a positive relationship could mean the difference between filled and vacant units.
Start by being approachable and flexible with your tenants, answering questions, and promptly addressing repair requests. Make sure the lease is clear to everyone and maintain a positive presence when on the property. Good communication can prevent potential issues and foster a generally positive rental experience. Tenants who feel heard and listened to are more likely to stay on a property long-term instead of seeking other accommodations.
TurboTenant features a centralized communication system, making it easy to directly message tenants through the desktop platform or individual mobile apps for landlords and tenants. When you communicate in the same place where you do business, nothing gets mixed up.
12. Streamline Renewals
Developing a proactive lease renewal process can help avoid vacancies, which could result in losing necessary income, and retain good tenants. To this end, it’s incredibly important to ensure your tenants are aware of when their lease term is ending and provide them with adequate time to review any rent price increases, if necessary.
This process could become cumbersome depending on how many units are in your portfolio. But leveraging software like TurboTenant couldn’t be easier. Because of TurboTenant’s lease tracking and management system, seeing which leases are about to terminate is easy because we display the termination date below the property address in the lease dashboard.
And when it’s time to renew, you can easily convert the lease to a month-to-month agreement or add an addendum.
So, should you rent out your house?
You’ve waded into property management and learned the basics by asking how to rent out your house. But the ultimate decision to rent out property is up to you.
Consider your short—and long-term financial goals. Are you looking for steady income right now, or is renting out property a long-term investment strategy to build a larger portfolio? Are you prepared to take on the multitude of tasks that renting out property can add to your plate?
Finally, what are your plans for the future — not only for yourself but for your property? Is this property one you plan to live in yourself someday? Or have you decided not to occupy the home again but want to build on the investment you’ve already made in the house and focus on a long-term growth strategy?
Asking yourself these questions and taking the time to consider why or how to rent out your house can help you achieve success or avoid disaster.
How TurboTenant Can Help
Whether you have one unit or 1,000 units, TurboTenant is here to help with all of your property management needs. When the tasks start to pile up, finding the most efficient process to streamline your day-to-day workflow is critical for long-term success as a landlord.
As a best-in-class, free property management software, TurboTenant offers landlords features like:
- Online rent collection
- Lease management
- Maintenance tracking
- State-specific, legally reviewed lease agreements
- Property listing syndication
- Tenant screening
- Financial and accounting tools
How to rent out your house doesn’t have to be a scary question. With software like TurboTenant, jumping into property management for the first time has never been easier.
So, sign up for a free account today!
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