Managing tenants with mental illness presents unique challenges for property managers, particularly as research shows the onset of two thirds of any mental disorder occurs by age 25, affecting a large portion of the rental population. You want to support tenants who need accommodations while also maintaining a safe environment for everyone in your properties. The Fair Housing Act provides clear guidelines on how to handle these situations legally and fairly.
This article breaks down what you need to know about Fair Housing Act compliance when working with mentally ill tenants. You’ll learn about protected classes, what constitutes discrimination, and 12 specific guidelines that help you navigate this complex area while protecting both your business and your tenants’ rights.
Disclaimer: Always consult a legal professional for the most accurate and up-to-date advice regarding fair housing laws and other regulations in your area.
What Is the Fair Housing Act
The Fair Housing Act is a federal law passed in 1968 that prohibits housing discrimination based on protected characteristics; when first enacted, one of its central objectives was to prohibit race discrimination in housing sales and rentals. It applies to renting, buying, financing, and other housing-related activities, making it illegal to make housing decisions based on someone’s protected class status.
Protected Classes Under the Fair Housing Act
The Fair Housing Act names seven federally protected classes. This means you cannot make decisions about housing based on a person’s:
- Race
- Color
- Religion
- National Origin
- Sex (including gender identity and sexual orientation)
- Disability
- Familial Status (the presence of children under 18)
Many states and cities have additional protections, so it’s helpful to be familiar with your local laws as well.
What Constitutes Housing Discrimination
Discrimination isn’t always obvious. Common forms include:
- Rental refusal: Declining to rent based on protected characteristics
- Different terms: Setting varying conditions for different tenant groups
- Discriminatory statements: Showing preference for or against protected groups
- Inconsistent policies: Applying rules differently to different applicants
The key is treating every applicant with identical standards and processes.
The Landlord’s Dilemma
When a tenant is mentally ill, property managers face competing responsibilities:
- Protect all tenants and staff: Maintain safe environments for everyone
- Respect tenant rights: Mentally ill tenants have disability protections under the Fair Housing Act, which defines a mental or physical impairment to include not just mental illness but also conditions like alcoholism, chronic fatigue, and learning disabilities.
Balancing these obligations requires understanding both your duties and tenant rights.
These 12 guidelines help property managers comply with Fair Housing Act requirements while managing mentally ill tenants:
Fair Housing Act Guidelines for Mental Illness
1. You can’t discriminate against mentally ill tenants with regard to housing access.
During the screening process, if you learnthat a prospective tenant is seeing a psychiatrist, is taking psychotropic medications, or has a history of hospitalization for mental health issues, your decision about the applicant’s eligibility can’t be influenced by this information.
2. You can’t ask a tenant about the nature or severity of their illness.
Keep the conversation limited to the tenant’s compliance with lease termsand the accommodations that they request.
3. You can’t evict a tenant for being mentally ill.
Your reasons for eviction have tobe as concrete as in any other case; if they don’t violate the lease, you can’t evict them. If they do violate the lease, you’ll need tofollow the same processes as you would in any other circumstance.
4. Mentally ill tenants still need to adhere to the terms of their lease to the best of their ability.
You have the right to raise the flag about missed rent payments, property damage, or dangerous behaviors should these issues arise.
5. Property managers should be prepared to offer reasonable accommodations to help mentally ill tenants to stay in rental housing.
Examples include:
- Relaxing your standards for an applicant’s employment history due to long-term hospitalization
- Granting assistance in filling out the rental application
- Allowing the individual to transfer to a quieter unit if noise exacerbates his or her mental illness
- Enabling the use of a separate entrance to the building to limit interactions with other tenants
There are all kinds of reasonable accommodations that may be successful. Many tenancies have been preserved thanks to cooperation and creative problem-solving.
The reasonable accommodation: The property owner gave her a foam bat. The tenant agreed to use it.
6. Reasonable accommodations should be practical and feasible.
They shouldn’t impose undue financial or administrative burdens or cause fundamental changes to your housing program or tenant experience.
7. The tenant needs to request an accommodation in order for it to be granted.
A housing provider is not required to provide an accommodation unless the tenant or someone acting on their behalf makes a request.
8. Housing providers can request certain documentation.
You can ask for documents that verify that the tenant meets the legal definition of disabled for the purposes of the Fair Housing Act, or that establish a link between the disability and the requested accommodation.
9. You may need to waive ‘no-pets’ policies.
If a mentally ill tenant has an emotional support or service animal prescribed by his or her doctor, you shouldwaive any ‘no-pets’ policies, provided that the request is reasonable, feasible, and practical.
10. You’re never obligated to allow direct threats to the safety or well-being of your residents or staff.
42 U.S.C Section 3604 (f)(9)Â states: “Nothing in this subsection requires that a dwelling be made available to any tenant whose tenancy would constitute a direct threat to the health or safety of other individuals or whose tenancy would result in substantial physical damage to the property of others.”
Where a direct threat to others exists, housing providers should be prepared to present evidence in court that no reasonable accommodation would acceptably reduce or eliminate the risk to others.
11. Current users of illegal drugs aren’t considered disabled for the purposes of reasonable accommodation.
Property managers aren’t required to allow illegal drug use on the premises unless prescribed by a physician. (There is some gray area emerging in regards to marijuana, so look out for updates on this in the future.)
12. Some areas have programs focused on government tenancy preservation, hoarding intervention, or homelessness prevention.
While property managers are not expected to be social workers, a timely referral to one of these programs, in lieu of an eviction, could literally be a lifesaver.
Consequences of Fair Housing Violations
Violating the Fair Housing Act can result in:
- Financial penalties: Government-imposed fines, which for a first-time violator, the civil penalty can be up to $26,262.
- Damage payments: Compensation to complainants
- Legal fees: Attorney and court costs
Fair and consistent practices protect your business and promote equitable treatment.
Staying Compliant While Managing Your Properties
Navigating the complexities of the Fair Housing Act requires clear policies and consistent application. Documenting your communications and processes is one of the most effective ways to demonstrate compliance and manage your properties fairly.
Key Takeaways
- The Fair Housing Act protects mentally ill tenants under disability provisions, prohibiting discrimination in rental decisions based on psychiatric treatment, medication use, or hospitalization history.
- Property managers can require mentally ill tenants to follow lease terms but cannot evict solely for mental illness and may need to provide reasonable accommodations like unit transfers or flexible application processes.
- Landlords can request documentation to verify disability status and accommodation needs, but cannot inquire about the nature or severity of a tenant’s mental illness.
- Fair Housing Act violations result in civil penalties, plus potential damage payments and legal fees to complainants.
Property management software can help you maintain organized records and apply your rules consistently across your entire portfolio. If you’re looking for tools to help improve your operational consistency, you can schedule a guided demo to see how Buildium works, or start your free trial today.
Frequently Asked Questions About the Fair Housing Act and Mental Illness
What are the 7 protected classes under the Fair Housing Act?
Race, color, religion, national origin, sex, disability, and familial status are federally protected—housing decisions cannot be based on these characteristics.
What constitutes housing discrimination under the Fair Housing Act?
Discrimination includes refusing to rent, applying different terms, making discriminatory statements, or treating protected classes unequally in housing transactions.
What happens if I violate the Fair Housing Act?
Violations can result in financial penalties, damages awarded to the complainant, and other legal consequences. Consistent, fair application of your policies is the best way to avoid violations.
Can I require documentation for reasonable accommodations?
Yes, you can request reliable documentation that verifies the person has a disability and shows the connection between the disability and the need for the requested accommodation.
How do state fair housing laws interact with federal protections?
State and local laws can expand federal protections but cannot reduce them. Check your area’s specific requirements for additional protected classes.
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