10.5 The Rental Process: Marketing, Tenant Screening & Fair Housing in Leasing

10.5 The Rental Process: Marketing, Tenant Screening & Fair Housing in Leasing

Core Principle: Rental Process and Federal and State Laws are named sub-topics of Content Area XI. The leasing cycle is where a manager's fair housing exposure is highest, because every step involves a decision about a person.

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1. The Leasing Cycle

  1. MARKET RENT ANALYSIS   Compare competing properties; set rent and concessions
  2. MARKETING              Advertise lawfully; brokerage name in every ad
  3. INQUIRY & SHOWING      Treat every prospect identically
  4. APPLICATION            Uniform written application and disclosed fees
  5. SCREENING              Apply written, objective criteria consistently
  6. DECISION               Approve, or deny with FCRA adverse action notice
  7. LEASE EXECUTION        Lease, deposits, F.S. 83.49 disclosure, required riders
  8. MOVE-IN INSPECTION     Documented condition report signed by both parties
  9. TENANCY MANAGEMENT     Rent collection, maintenance, notices, renewals
 10. MOVE-OUT               Inspection, deposit accounting under F.S. 83.49 timelines

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2. Setting Rent and Marketing Lawfully

Market rent is established the same way a listing price is: by comparison. The manager surveys competing properties for unit type, size, condition, amenities, and concessions, and adjusts to the subject. Two management-specific measures matter alongside price:

A property at 4% physical vacancy but 14% economic vacancy is not full — it is discounting heavily and collecting poorly.

Advertising Rules That Apply to Rentals

[!NOTE] Advertising language is where fair housing cases start. Descriptions of the property are safe; descriptions of the desired occupant are not. "Two bedroom, two bath, walk to the beach" is fine. "Perfect for a young professional couple," "ideal for mature adults," "no children," "Christian community," and "walking distance to St. Mark's — great for parishioners" are not.

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3. Screening: Write the Criteria Before You See the Applicant

A defensible screening programme has three features: the criteria are written, they are objective, and they are applied identically to every applicant.

[!IMPORTANT] The violation is usually the exception, not the rule. A manager who requires 3× income of every applicant is on solid ground. A manager who waives it for one applicant and enforces it against the next has created the comparison that proves discrimination. Document every deviation and the neutral business reason for it — or do not deviate.

Income Source and Assistance

A lawful income requirement measures amount and verifiability, not the source. A blanket policy of refusing to consider verified housing assistance, alimony, child support, disability income, or retirement income invites a familial status, disability, or sex discrimination claim, and some Florida local ordinances go further and protect source of income directly. Check the county and municipal ordinances that apply to the property.

The Adverse Action Notice — Fair Credit Reporting Act

When an application is denied, or when less favourable terms are imposed (a larger deposit, a co-signer requirement), wholly or partly because of information in a consumer report, the FCRA requires an adverse action notice to the applicant. It must:

1. State that adverse action was taken;
2. Identify the consumer reporting agency that supplied the report, with its name, address, and telephone number;
3. State that the agency did not make the decision and cannot explain it;
4. Advise the applicant of the right to a free copy of the report from that agency within 60 days; and
5. Advise the applicant of the right to dispute the accuracy or completeness of the information.

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4. Fair Housing in Leasing

The federal Fair Housing Act and the Florida Fair Housing Act (Chapter 760, Part II) protect race, colour, national origin, religion, sex, familial status, and handicap or disability. Two of those classes generate most leasing complaints.

Familial Status

Familial status protects households with one or more children under 18, and persons who are pregnant or in the process of securing custody.

The housing for older persons exemption is narrow. It requires either that the housing be intended for and solely occupied by persons 62 or older, or that at least 80% of occupied units have at least one resident 55 or older together with published policies and verification procedures demonstrating the intent to serve older persons. A property cannot simply declare itself adults-only.

Disability

An assistance animal — a service animal or a support animal that provides disability-related assistance — is not a pet. A "no pets" policy must be waived as a reasonable accommodation, and the provider may not charge a pet fee, pet deposit, or pet rent for it. The tenant remains fully liable for any actual damage the animal causes, and Florida law permits a housing provider to request reliable supporting information where the disability or the disability-related need is not readily apparent.

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5. Move-In and Move-Out

A documented condition report at both ends of a tenancy is the single most effective defence against deposit disputes.

[!IMPORTANT] Deposits are trust funds. For a broker managing property, tenant security deposits and advance rent sit in a property management escrow account subject to F.A.C. 61J2-14.010(2) and the monthly reconciliation duty in 61J2-14.012(2), in addition to the F.S. 83.49 holding, disclosure, and claim-notice requirements.