February is Black History Month, a month dedicated to the achievements and struggles of Black people in history. What does this have to do with property management or real estate? Fair Housing, the rights that tenants have when renting, is directly tied into the Civil Rights Movement of the 1960’s. Exactly seven (7) days after Martin Luther King Jr’s assassination Title VIII (8), the Fair Housing Act was passed. This ensures the rights of all tenants are protected and cannot be discriminated against.
What is Title VIII and the Fair Housing Act? The Fair Housing Act was written with the intention of protectable rights and the creation of rules against discrimination, enacted as Title VIII (8) of the Civil Rights Act of 1968. Prohibiting the discrimination in the sale, rental, or financing of housing based on race, color, religion, sex, national origin, familial status, and disability. The law protects these classes when it comes to the sale, rental, advertising, and financing of dwelling properties. Discrimination in real estate can look like refusing to rent/sell, lying about availability, imposing different terms for different tenants, and/or creating discriminatory ads.
A Local Look:
In the 1930s to the 1960’s Las Vegas history marks it as a time of racial segregation and redlining, leading to the confinement of Black residents to the “Westside” of Vegas. Redlining is the systematic practice of lenders and government agencies barring people from loans, mortgages, insurance, or banking services based on race or ethnicity. Redlining was outlawed with the passing of the Civil Rights Act.
A key leader in Nevada fair housing was Woodrow Wilson; the first African American elected to Nevada legislature. Wilson was the primary driver for Nevada’s fair housing legislation, working to align state law with federal standards in the effort to end discriminatory practices. Despite the enactment of the Fair Housing Act along with the Civil Rights Act, the decades of prior discrimination created many racial disparities, leading to wealth inequality and less developed areas with a high minority percentage. Many of these racial divides can still be seen today, including but not limited to, the Homeownership Gap, a present gap that represents the difference between Black and White homeownership.
Modern Times:
When becoming a landlord or property manager, you must educate yourself on the implications and nuances of fair housing laws. There is a fine line between intentionally being discriminatory and understanding the impact of seemingly neutral policies. Disparities can be present if you do not require the same processes for everyone. For example, if you tell a potential renter that the credit needed to be approved is 600+, then that number applies to all the applicants of that property. It would be discriminatory to require a credit score of 550+ for one applicant, and 600+ for another.
A simple rule of thumb to follow is, “The Same for Everyone” rule. This means that the application, screening, and rental (move-in and move-out) processes must remain the same for everyone and may not be changed for others. There are many ways that a landlord can accidentally violate fair housing, that is why it is important to stay informed on the laws and rights of tenants.
Fair housing is a necessity and right of tenants, not a “legal hurdle” that housing providers must jump over. While February is Black History Month, highlighting the triumphs of those who have fought for fair housing rights. It is important to look to the future and educate ourselves so that the past may not repeat itself. Practicing fair housing should be a year-round, everyday habit that is non-negotiable. Fair housing compliance is a commitment to the fundamental right of every person to choose where they live.
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