Can I refuse to rent my extra house to certain people?
Quick Summary
Yes, you are likely exempt from most federal fair housing rules because you are a private individual owning fewer than three single-family homes and are not using a real estate agent. However, you still cannot use discriminatory advertisements or violate specific protections regarding disabilities.
The situation
I live in a small town in Ohio and I currently own two single-family houses. I live in one of them, and the other one is a separate house down the street that I use as a rental property to help pay my mortgage. I have been renting it out for about two years now. Recently, a potential tenant applied for the rental, but after meeting them, I realized we just wouldn't be a good fit for my neighborhood, and I decided I didn't want to move forward with their application. I am worried that I might be breaking some kind of rule because I am choosing who stays in my property. I am not a real estate agent, I don't use a property management company, and I haven't sold or rented more than two other houses in the last year. I only own these two specific houses and nothing else. I have already checked with a local realtor, but they weren't very clear about whether these rules apply to a regular person like me who just owns a couple of homes. Am I legally allowed to decide who I rent my private single-family home to, or am I required to follow the same strict rules as big apartment complexes?
Detailed Analysis
Under the federal Fair Housing Act, most people are prohibited from discriminating against renters based on race, color, religion, sex, familial status, or national origin[2]. However, there is a specific exemption for private individuals like you.
The law states that nothing applies to "any single-family house sold or rented by an owner: Provided , That such private individual owner does not own more than three such single-family houses at any one time"[1]. This means because you only own two houses, you fall under this exemption.
To keep this exemption, you must meet two strict conditions. First, you must act "without the use in any manner of the sales or rental facilities or the sales or rental services of any real estate broker, agent, or salesman"[1]. Since you mentioned you are not a real estate agent and do not use a property management company, you appear to meet this requirement. Second, you cannot violate rules regarding how you advertise. Even with the exemption, the law prohibits certain types of discriminatory advertising[1].
It is important to note that while you are exempt from the general discrimination rules in section 3604, the law provides specific protections regarding disabilities (handicaps) that may still apply depending on the context of the dwelling[2].
Because you are acting as a private landlord for a small number of properties without professional help, you have much more freedom to choose your tenants than a large apartment complex does. However, the law is unsettled regarding exactly how much 'professional assistance' or 'services' might disqualify you if you were to hire help in the future.
Statutory Citations
Legal Citation: Fair Housing Act § 42 U.S.C. § 3603 — Effective dates of certain prohibitions
"Nothing in section 3604... shall apply to— (1) any single-family house sold or rented by an owner: Provided , That such private individual owner does not own more than three such single-family houses at any one time"View Official Legislation →
Legal Citation: Fair Housing Act § 42 U.S.C. § 3604 — Discrimination in the sale or rental of housing and other prohibited practices
"it shall be unlawful— (a) To refuse to sell or rent after the making of a bona fide offer... to any person because of race, color, religion, sex, familial status, or national origin."View Official Legislation →
Important Legal Disclaimer
General legal information, not formal legal advice. The information provided on LawAsked does not constitute formal legal advice and creates no attorney-client relationship. If you require legal assistance, please consult a licensed attorney in your jurisdiction.
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