When deciding who to rent your property to, do you worry about violating the Fair Housing Act? If not, maybe you should: Fines for violations can reach up to $10,000 for the first violation and $50,000 for a third violation within seven years. I have yet to find a Fair Housing case regarding vacation rentals, so as far as I know there is no precedent as to whether or not vacation rentals must comply with the act. But by risking it, do you want to be the case that sets the example?

Here's what the law says:

Title VIII of the Civil Rights Act of 1968 (Fair Housing Act), as amended, prohibits discrimination in the sale, RENTAL, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents of legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability).

A property is exempted from the rule if:
• The individual owner does not own any interest in, or have owned by someone else on his/her behalf, more than 3 such single-family houses at any one time.
• The private individual owner has not sold more than one non-owner occupied single-family house within a 24-month period.
• With regards to the sale or rental of a dwelling, it is sold or rented without advertising or the assistance of a person or entity that is in the business of selling or renting dwellings.
• The owner occupies and maintains one of no more than 4 rooms or units in dwellings containing living quarters occupied or intended for occupation by no more than 4 families living independently of each other.

While most owners own less than three rental properties and do not list their property with a licensed real estate agent, almost all owners advertise and therefore could be subject to the edicts outlined in the Fair Housing Act. Just to be safe, I'd contact a real estate attorney seasoned in the legalities of vacation rental properties in your vacation home area, including state and local statutes.

So what does the Fair Housing Act mean for your vacation rental business? That you need to be mindful of potential renters and give careful thought to all decisions.

Here is my interpretation:

Families with Children: For the most part, you can not have restrictions against families with children under the age of 18, though some exceptions do exist. For example, certain areas permit you to get a license that allow restrictions (i.e. 55 & up communities). Even if you'd prefer not to rent to families with children, I don't recommend saying so in your advertising.

Renters Under 25: If you read the Fair Housing Act closely, it doesn't say anything about age restrictions. You're free to set age restrictions (such as No One Under 25, No Students, etc.) for your property, just be sure that you comply with state and local laws for short-term rentals.

Renters with Pets: With the exception of service animals, you're free to forbid pets at your rental property.

The Bottom Line
Don't explicitly state restrictions in your advertisements. It's better to be safe than sorry. For more information on the Fair Housing Act, visit http://www.usdoj.gov/crt/housing/fairhousing.  

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