The Tennessee Fair Housing Act (FHA) was passed by Congress in April 11, 1968, to prevent housing discrimination in the housing market. The Fair Housing Act not only applies to mortgage lenders and people selling housing unit, but it’s extremely important for owners, as well.

As a Tennessee landlord, it’s important to understand this aspect of landlord-tenant law to avoid potential housing discrimination claims against you under the Federal Fair Housing Act. Additionally, tenants are more likely to renew their lease if treated fairly and equally. 

The following is a basic overview of the Fair Housing Act in Tennessee and are covered by the Tennessee Fair Housing Council.

What Is the Fair Housing Act? 

The Fair Housing Act is a federal law enacted in 1968 during the Civil Rights Act. Its primary goal is to protect buyers and renters from housing discrimination. While it started with the Civil Rights Act, it continues to today. Fair Housing laws apply to housing-related transactions, ranging from renting or buying a home to obtaining a mortgage under the Department of Housing and Urban Development.

What Are the Protected Classes under the Fair Housing Act? 

The Federal Fair Housing Act prohibits housing discrimination based on seven protected classes. As per the Department of Housing and Urban Development, they are as follows. 

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

Fair Housing laws don’t protect any additional groups of people beyond those protected by the Federal Fair Housing Act, as determined by the Department of Housing and Urban Development and started by the Civil Rights Act.

As a landlord, you must treat tenants equally regardless of these protected classes, such as disability, familial status, sex, race, or national origin. Violating fair housing laws, including those protecting national origin or other protected classes, can lead to severe penalties, including fines, injunctions, or even criminal prosecution under fair housing.

In Tennessee, penalties depend on the nature and severity of the violation of fair housing and its protected classes, with a focus on preventing future discriminatory practices against protected classes as per the Civil Rights Act.

Are There Any Exemptions to the Fair Housing Act? 

While the Fair Housing Act applies to most housing situations, there are some exemptions as per the Department of Housing and Urban Development. These exemptions can also impact certain property management scenarios, depending on the specific circumstances and the protected classes involved. The Fair Housing Act exemptions include those related to race and other protected characteristics.

• Owner-occupied buildings with four units or less do not have to think of protected classes.
• Single-family homes sold or rented without the use of a broker (provided the owner owns three or fewer homes).
• Housing operated by religious organizations that does not openly discriminate against any of the protected classes.
• Private clubs that limit occupancy to their members where exclusivity is via membership and not because of belonging to protected classes.
• Housing designated for tenants aged 55 and older. 

What State Agency in Tennessee Handles Fair Housing Complaints? 

In the state of Tennessee, the Human Rights Commission is the one that handles housing discrimination complaints. The following are examples of behaviors that may be considered Tennessee fair housing violations, including those based on religion or other protected characteristics under fair housing:

• Rejecting a tenant’s application based on protected classes such as familial status or disability. 
• Refusing to provide disabled tenants with reasonable accommodations or modifications as per their protected class.
• Using discriminatory phrases in your property’s ad. 
• Falsely claiming that your vacant unit is already occupied when you’re actually rejecting the tenant based on a protected class. 
• Offering tenants different terms and conditions based on protected classes. 
• Harassing or intimidating a tenant based on a protected class. 
• Increasing housing costs on discriminatory grounds due to a tenant belonging to a protected class.
• Having discriminatory clauses in your lease agreement against a protected class.

What Are the Best Practices to Ensure Fair Housing when Renting a Property?

To be a successful landlord, you’ll want to engage in these best practices to comply with the state’s anti-discrimination laws and avoid potential housing discrimination claims from the Department of Housing and Urban Development, including those based on religion or other protected characteristics for fair housing.

Have Consistent Rental Requirements

When renting out your housing property in Tennessee, you’ll want to establish clear applicant criteria and apply them consistently to all renters to avoid any form of discrimination against a protected class.

Regardless of disability, familial status, sex, national origin, race, or whether applicants have children, ensure your standards, such as a required credit score, are applied equally across protected classes. Adhering to Tennessee’s fair housing regulations is essential to prevent potential discrimination claims, especially when it comes to families with children.

Advertise Your Property Fairly to All Applicants

When advertising your property under the Fair Housing Act, avoid using any language that can come across as discriminatory and violates the Fair Housing Act by differentiating a protected class. Instead, highlight the property’s features, amenities, location, and its potential to provide affordable housing, rather than focusing on the attributes of potential tenants such as national origin or familial status.

Handle Tenant Inquiries without Prejudice

When responding to inquiries, provide the same information to all prospective tenants in order to follow Fair Housing regulations. Be consistent in answering questions, scheduling showings, and providing application materials in order to provide fair housing to all protected classes like familial status or national origin.

Make Reasonable Accommodations for Tenants with Disabilities

This may involve modifying property rules or policies or allowing tenants to make alterations to their units. Examples of reasonable modifications you could make include lowering the entry threshold of a unit, installing a ramp, or installing grab bars in the bathroom for a tenant, regardless of their religion or other protected characteristics.

As for reasonable accommodations under the Fair Housing Act, examples include assigning them an accessible parking space, allowing them to transfer to the ground floor unit, or adjusting the rent payment schedule to align with their income assistance payments. You would also have to allow a tenant to live with their service animal, even if you usually don’t allow pets in your property. 

Maintain Proper Documentation 

Keep records of all communications with applicants and tenants, as well as any decisions or actions taken during the rental process. This documentation can be useful if any housing discrimination claim occurs, including claims related to sex or other protected characteristics.

Conclusion 

When renting out a property in Tennessee, you must observe certain crucial Fair Housing laws to avoid potential lawsuits against you. Besides the fair housing laws, you should also acquaint yourself with other laws, such as habitability laws, landlord entry laws, and security deposit laws. 

If you need more information on staying legally compliant or need expert help managing your property, then look no further than Specialized Property Management Memphis. We can help maximize your returns while minimizing your stress. 

Disclaimer: Please note that the information provided in this blog is intended for general guidance and should not be considered as a replacement for professional legal advice. It is important to be aware that laws pertaining to property management may change, rendering this information outdated by the time you read it.