Champion Realty provides property management in Raleigh NC, and is a team of Raleigh Realtors and other Raleigh Real Estate Agents.
They can help you find Raleigh Homes for Rent and Raleigh Houses for Sale
You can also search the Raleigh MLS to find Raleigh Real Estate Listings on their website.
Contact them via the following:
Website: www.Champion-Realty.net
Office: (800) 290-4010
E-mail: Rodney@Champion-Realty.net
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What is Fair Housing?
Fair housing issues are among the most important legal issues facing tenants, brokers, and landlords today. Fair housing laws - for the benefit and protection of all tenants and prospective tenants - impact virtually every decision made by owners, managers, sellers, buyers and agents. Even though this blog covers primarily landlord - tenant relations, the prohibitions of fair housing law cover the spectrum of real estate transactions, including sales and rentals of real property, as well as lending practices.
The Federal Fair Housing Act
In response to widespread discrimination in housing, Congress passed the landmark Fair Housing Act (FHA) as part of Title VIII of the Civil Rights Act of 1968. The FHA, along with its subsequent amendments, is the primary federal law against discrimination in housing. This law prohibits anyone, include owners, property managers, agents and brokers, from discriminating in the sale or leasing of residential real estate. As enacted in 1968 (amended in 1974 to add the classification of 'sex'), the FHA prohibited discrimination on the basis of:
The FHA was substantially revised by the Fair Housing Amendments of 1988, which added two new protected classes of citizens:
Discrimination occurs when a person who is seeking, renting, or occupying a houses is treated differently because of her protected status - ie., because of her race, color, religion, sex, national origin, handicap or familial status. The 1988 amendments added elaborate provisions defining 'familial status' and a 1995 amendment created exemptions for 'housing for older persons.' It also gave handicapped persons the right to make reasonable modifications in existing housing and it required certain design standards in the construction of new housing.
Penalties for violations of the FHA include:
A full copy of the FHA is available at: http://www.justice.gov/crt/housing/title8.pho
The North Carolina Fair Housing Act
North Carolina has its own version of the Fair Housing Act. In virtually all respects, North Carolina's fair housing laws are identical to the federal in terms of the seven protected classifications discussed above. However, this changed in 2009, when the NC Legislature amended the State Fair Housing Act to add a new protected classification: Affordable housing in the context of municipal planning. It was amended to add subsection (f), which states:
"It is unlawful discriminatory housing practice to discriminate in land-use decisions or in the permitting of development based on race, color, religion, sex, national origin, handicapping condition, familial status, or except as otherwise provided by law, the fact that a development or proposed development contains affordable housing units for families or individuals with incomes below 80% of are median income. It is not a violation of this Chapter if land-use decisions or permitting of development is based on considerations of limiting high concentrations of affordable housing."
In addition, it was also amended to add subsections (3) and (4), which state:
(3) "A local government's act or failure to act in land-use decisions or in the permitting of development is intended to discriminate against affordable housing. A local government intents to discriminate if, in commiting an unlawful discriminatory housing practice desrcribed in G.S. 41-A-4(f), the local government was motivated in full, or in any part at all, by the fact that a development or proposed development contains affordable housing units for families or individuals with incomes below 80 percent of area median income. It is not a violation of this Chapter if land-use decisions or permitting of development is based on considerations of limiting high concentrations of affordable housing. An intent to discriminate may be established by direct or circumstantial evidence."
(4) "A local government's act or failure to act has the effect, regardless of intent, of discriminating against affordable housing in land-use decisions or in the permitting of development, as set forth in G.S. 41A-4(f). It is not a violation of this Chapter if land-use decisions or permitting of development is based on considerations of limiting high concentrations of affordable housing. It is not a violation of this Chapter if a local government whose action or inaction has an unintended discriminatory effect proves that the action or inaction was motivated and justified by legitimate, bona fide governmental interest."
Those these new amendments to the State Fair Housing laws do not directly affect tenants and landlords on day-to-day operations, they present a significant impact on multi-family developers and their relationship with local government entities, including town and city councils and planning boards. Under these new laws, municipalities must take great care before electing to deny a proposed affordable housing development, as a denial of such development could lead to claims of discrimination.
Local Fair Housing Ordinances & Regulations
Many localities have also adopted fair housing ordinances and regulations. These are usually very similar to the state and federal fair housing laws, but may include additional protected classes. For example, some localities also prohibit discrimination on the bases of sexual orientation, political preference, or marital status. Thus, it is extremely important that one check with their city or county government to find out if they have adopted such additional protections. If a city or state has fair housing laws that are comparable to the FHA, the federal and state authorities will sometimes refer complaints to the city or a designated state or local organization (a human relations department or commission) for counseling or investigation.
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Ordinarily, property owners have the right to refuse animals while renting their property. However, specific circumstances exist when a dog, cat, or possibly another type of animal is not considered a ‘pet.’ When a disabled person with an assistance animal applies to rent a property, a landlord cannot refuse to rent to the prospective tenant on the grounds of having an animal or ‘pet.’ This is under Title II of the American Disabilities Act of 1990.
Definition of a service animal: a service animal is one individually trained to do work or perform tasks for the benefit of a person with a disability. A service animal, such as a dog, can be any breed or size. It might wear specialized equipment such as a backpack, harness, special collar, or lease, but this is not a legal requirement.
Determining a ‘true’ service animal: Housing providers may ask an applicant or tenant to provide documentation from a qualified professional that the individual has a disability and requires a service animal as an accommodation.
What you CANNOT ask: Housing providers may NOT ask an applicant or tenant to provide:
Service animal training: Generally, they train most service animals to assist the disabled person with individual needs relative to that person’s disability. While some animals receive certification papers, others do not. It is legitimate for a person with a disability to train his/her own service animal. There is currently no national standard with which to evaluate the training or performance of any type of service animal, including guide dogs. You may not require the disabled tenant to provide proof of the service animal’s training.
No additional deposits: A service animal is not a pet and you CANNOT lawfully require any additional deposits. You also cannot retaliate by creating a higher deposit than what you would require for other prospective applicants for the property.
Service animal damages: You can hold the tenant responsible for the actions of his/her animal for any damage to your property. Additionally, the tenant must comply with any of your established policies such as cleanliness and maintenance of the unit as well as leash requirements and noise guidelines. In most cases, assistance animals are usually well behaved.
Property tenant screening: You cannot refuse to rent to a disabled tenant and their service animal, but as your Raleigh Property Management Company, we can require them to process through the same screening practices as other tenants.
Obviously, a service animal is a sensitive issue, and as your property management company, we know the importance of following the law to avoid any legal issues. However, we will require them to meet our screening standards.
When performing an inspection of Raleigh rental homes, there are certain things to watch for. Here are only a few:
North Carolina case law provides that an owner or keeper of a vicious animal is strictly liable for injuries caused by the animal if the owner or keeper knew or should have known of the animal's vicious propensity. In addition, a recent North Carolina Supreme Court case held that a landlord was liable for injuries caused by the tenant's dog based on the negligence of the landlord's property manager. The tenant's lease permitted him to keep one Rottweiler dog on the property. The lease also required the tenant to 'remove any pet...within 48 hours of written notification from the landlord that the pet, in the landlord's sole judgment, creates a nuisance or disturbance or is, in the landlord's opinion, undesirable.' The evidence demonstrated that the property management company permitted the tenant to run freely, that on two previous occasions, nearby neighbors had been attacked by one of the dogs, and that the property manager knew of the incidents. The court stated that a landlord is potentially liable for injuries to third persons if the landlord has control of the leased premises, and that in the case under consideration, the lease agreements grated the property manager and landlord sufficient control to remove the danger posed by the tenant's dogs. The court also concluded that the negligence of the property manager could be attributed to the landlord based on the principal-agent relationship.
Under the Residential Rental Agreements Act, the landlord is obligated to: 1) comply with the current applicable building and housing codes; 2) make all repairs; 3) keep all common areas in a safe condition; 4) maintain and repair all electrical, plumbing, sanitary, heating, ventilating, air conditioning, and other facilities supplied by the lease agreement; 5) provide operable smoke detectors, either battery operated or electrical, having an Underwriters' Laboratories, Inc. listing or other equivalent national testing laboratory approval, and install the smoke detectors in accordance with either the standards of the National Fire Protection Association or the minimum protection designated in the manufacturer's instructions, which the landlord shall retain or provide as proof of compliance; 6) provide notice that water being supplied exceeds a maximum contaminant level if the landlord is charging for the cost of providing water or sewer service and has actual knowledge that water being supplied to tenants within the landlord's property exceeds a maximum contaminant level; 7) effective January 1, 2010 with respect to dwellings having a fossil-fuel burning heater or appliance, fireplace, or an attached garage, provide a minimum of one operable carbon monoxide detector per rental unit per level, either battery powered or electrical, that is listed by a national, OSHA-approved testing laboratory, and install the carbon monoxide detectors in accordance with either the standards of the National Fire Protection Association or the minimum protection designated in the manufacturer's instructions, which the landlord shall retain or provide as proof of compliance; and 8) repair or remedy any imminently dangerous condition on the premises within a reasonable period of time based upon the severity of the condition after acquiring actual knowledge or receiving notice of the condition.
The term 'imminently dangerous condition' means any of the following:
The landlord may recover from the tenant the actual and reasonable costs of repairs that are the fault of the tenant.
The term 'landlord' generally applies both to the person or company that owns a rental unit and to the person or company which manages the property. Under North Carolina's Residential Rental Agreements Act, the term 'landlord' is defined as "...any owner and any rental management company, rental agency, or any other person having the actual or apparent authority of an agent to perform the duties imposed by this Article.' Management of the property often includes advertising, contracting with prospective tenants, maintenance, collecting, and eviction. Property managers may be agents for one property owner or several unrelated property owners.
The law of agency makes a 'principle' liable for the acts and promises of an 'agent.' As a general rule, leasing agents and repair personnel are agents of, and can create liability for, the landlord. If the agent is found to have committed a civil wrong (a 'tort') the agent is personally liable also.
Because the property manager is the 'agent' of the property owner, the property owner can be held liable for actions of the property manager when those actions are in the 'course and scope' of the purpose for which the agent was employed. A general principle of agency law is that when an agent causes harm to someone through negligence, both the employer and the agent are equally liable.
Even one rental of residential property makes a person subject to the laws relating to landlords, including potential treble damages and tenant attorney fees if the tenant's claim is for 'unfair or deceptive trade practices.'
There is no specified termination date for a lease in North Carolina law. Agreement of the parties, or actions that show evidence of an agreement to have a lease from month-to-month or year-to-year, will establish the termination date. A renewal clause can extend a lease indefinitely. However, if there is no provision in the lease giving the tenant the option to renew, there is no implied right to renew.
For contracts entered into on or after October 1, 2007, the law requires that an automatic renewal provision in a contract to sell or lease a product or service to a consumer must be disclosed clearly and conspicuously in the contract. Additionally, any such contract must disclose clearly and conspicuously how to cancel the contract. Although an argument can be made that a residentail real estate lease is not a contract for a 'product or service,' it is advisable to capitalize or in some other manner 'clearly and conspicuously' disclose any automatic renewal clause and the manner to which the lease may be terminated in order to avoid any automatic renewal. A violation of this law makes the automatically renewal clause void and unenforceable.
A written lease should state what happens if the tenant remains on the premises after the agreed time period ends. This is referred to as 'holding over' and the lease should provide for a continuation of the basic contract, with modifications for the extended term (possibly month-to-month until a new contract is signed), and there may be a rent increase provision. In the absence of a written agreement, courts have ruled that a tenant holding over under a year-to-year lease may have the right to continue in possession ona year-to-year basis. If a lease has any ambiguity relating to renewals, the ambiguous words will be interpreted in favor of the party who did not draft these words. This is a general rule of contract law, and encourages careful attention to the wording of the lease.
The lease term agreed upon usually is part of a written agreement. An early termination of the relationship can be agreed upon at any time. However, if because of current market conditions re-leasing is expected to be delayed or difficult, the landlord may not agree to change the contract or make a substitute contract and relieve the tenant of responsibility for paying through the end of the lease term.
In the absence of a written agreement which specifies other notice requirements, North Carolina law provides that a tenancy may be terminated upon giving of certain notice prior to the end of the current term of the tenancy. A tenancy from year-to-year may be terminated by giving a notice of one month or more; a tenancy from month-to-month by a notice of seven days or more; and a tenancy from week-to-week by a notice of two days or more. A notice of sixty days is required with the rental of a space for a manufactured home.
A tenant who is a member of the US Armed Forces has statutory protection if required to move pursuant to permanent change of station orders 50 miles or more from the dwelling unit, or is prematurely or involuntarily discharged, or is deployed with a military unit for 90 days or more. If the tenancy at that time has been less than nine months, the landlord has the right to collect some damages under North Carolina law; however, given the wording of the federal Servicemembers' Civil Relief Act of 2003, it is unclear whether the landlord's right to collect such damages is enforceable, except in cases where the service member is prematurely or involuntarily discharged.
In general, the grounds for a court proceeding to effect a termination are: failure to pay rent when due; expiration of the term; and breach of contract (violation of a material lease provision or a rule of conduct incorporated by reference into the lease).
When a tenant's entire interest in leased property is transferred to another person, it is an 'assignment' of a lease. In an assignment, the original tenant does not retain any later interest in the lease term. However, when the tenant assigns his interest in the lease, he has not relieved himself of future responsibility under the lease. Thus, if the person to whom the lease is assigned does not pay the rent, the landlord can still recover th erent from the original tenant.
In a 'sublease,' the tenant makes an arrangement directly with a third party for the third party to use the property for a portion, but not all, of the remainder of the original lease term. The landlord-tenant relationship continues between the two original parties of the lease agreement. As is the case in an assignment, the original tenant who subleases the proeprty has not relieved himself from future liability under the lease.
Unless there is a restriction in the lease stating otherwise, the interest of the tenant can be assigned or subleased without the landlord's consent. Consequently, leases often contain a provision that the tenant shall not assign or sublet the premises without the approval of the landlord. This allows the landlord to obtain the same information from all prospective tenants, and apply the same standards to each one. A provision in the lease that the tenant cannot sublease may be significant when rental charges are less than current market charges, and the tenant desires to sublease at a profit.
A satisfactory written lease must contain certain provisions. It identifies all parties who will have a responsibility for the contract. If a landlord wishes to hold liable two or more persons as tenants, each should sign or there should be some written document on file proving that one has the authority to sign for the other. When there are two or more responsible tenants, each is entitled to an eviction notice if that becomes necessary. The lease includes also: a sufficient description of the particular property involved; a starting date and a duration (the 'term'); the amount of rent and payment dates; important obligations of the tenant; and important obligations of the landlord. Some of the rights and obligations that should be clearly stated to avoid arguments and litigation include: rent due date and the landlord's rights when unpaid; parking; permitted uses of hte premises; pets; sub-leasing; utilities; damages; repairs; and improvements made by the tenant. If a security deposit is obtained, the landlord must notify the tenant where it is being held (in writing, either at the time it is obtained or within thirty days after the lease term begins.)
The lease terminology can shorten the length of time for an eviction. Unless appropriate wording is used, a landlord cannot begin the eviction process until ten days have passed after the landlord makes 'a demand for the rent.'
Each person with obligations or rights should sign the contract. use of the printed word 'seal' after a signature can extend from three years to ten years the teim within which a lawsuit may be brought against the person signing this contract.
While some statutes create procedural rules that can be governed by a lease contract, certain statutory provisions are 'included' in all leases because the North Carolina General Statutes mandate certain responsibilities and actions. These General Statutes requirements are always in force, and override any conflicting provisions within the lease.
The purpose of any lease is to establish the obligations which the landlord and tenant will be bound by for the duration of the lease. Although circumstances may arise which are not covered in the lease, careful drafting will provide solutions for most problems. Clarity and attention to details are essential in the drafting of a lease, for ambiguities will lead to the need for interpretation, and may result in a court challenge by the tenant. Any ambiguity in a contract is interpreted in favor of the person who did not prepare the ambiguous words, so the landlord always is at a disadvantage in court if the lease is not clear.
The length of the lease, the number and types of provisions, and the detail involved in provisions will vary. Rules and regulations the tenant must obey to protect the property and to preserve harmony should be included in the agreement or attached to it, and the lease should state that the tenant will comply with all the rules and the regulations.
Use of 'fine print' should be avoided. And, when describing items most likely to be misunderstood or objected to by tenants, the use of attention-getting type, such as large bold lettering, is advisable.
