What Texas rental property owners should know about fair housing rules

Understanding Texas fair housing laws can help rental property owners make more informed decisions when managing tenants and properties.

To sustain a rental property in Texas, you need to do more than just find tenants and collect rent. Fair housing laws in Texas can affect how you advertise the property, screen applicants, set rental terms, and respond to tenant requests.

The main thing to know is that these rules apply throughout the landlord-tenant relationship, not just when you approve or deny an application.

Here’s what else you need to know.

Fair housing rules apply to more than just tenant screening

The federal Fair Housing Act prohibits housing discrimination based on:

• Race
• Color
• National origin
• Religion
• Sex
• Familial status
• Disability

Texas has its own Fair Housing Act under Chapter 301 of the Texas Property Code, which addresses discrimination based on these same protected classes.

These rules can apply not only to approving or denying an applicant, but also to advertising, property availability, lease terms, and other decisions made throughout the landlord-tenant relationship.

Disability-related requests may require exceptions to your usual policies

Fair housing rules can require landlords to make certain adjustments for tenants with disabilities. These requests generally fall into two categories.

Reasonable accommodations

A reasonable accommodation is a change or exception to a rule, policy, practice, or service that a person with a disability may need to use and enjoy the home. Examples can include allowing a qualifying assistance animal despite a no-pet policy or adjusting how a landlord communicates with a tenant.

Reasonable modifications

A reasonable modification is a physical change to the dwelling or certain common areas, such as installing grab bars or adding a wheelchair ramp. Under the Fair Housing Act, tenants generally pay for these modifications, although different rules can apply to some federally assisted properties.

Fair housing violations can carry serious financial consequences

A fair housing complaint can lead to an investigation by the U.S. Department of Housing and Urban Development (HUD) or the appropriate state or local agency. Depending on the circumstances, a violation may result in monetary damages, attorney’s fees, civil penalties, or orders requiring changes to rental policies and practices.

Texas law can also allow an aggrieved person to pursue a civil action, with possible remedies including actual damages, punitive damages, attorney’s fees, and court costs.

Consistent procedures can reduce fair housing risk

Rental property owners can support compliance by building fair housing considerations into their regular management practices:

• Use clear screening criteria. Set written standards for factors such as income, credit history, and rental history, and apply them consistently.
• Check local requirements. Federal and Texas rules may not be the only ones that apply, so confirm any city or local fair housing requirements for the property.
• Take accommodation and modification requests seriously. Review each request based on the individual circumstances and applicable law rather than relying on a blanket policy.
• Keep thorough records. Document applications, screening decisions, tenant communications, and disability-related requests.

Past rulings can affect how fair housing rules are applied

Fair housing cases are often fact-specific, so past rulings can help owners understand how courts have interpreted certain issues. Below are a few worth knowing:

• Texas Department of Housing and Community Affairs v. Inclusive Communities Project (2015): Confirmed that the Fair Housing Act can cover policies with discriminatory effects, even without explicit discriminatory intent.
• Women’s Elevated v. City of Plano (2023): Addressed whether local occupancy rules had to be adjusted as a reasonable accommodation for a sober-living home.
• Walls v. Capella Park Homeowners’ Association (2017): Examined a reasonable-accommodation dispute involving restrictive covenants and a group home.

For less straightforward issues — especially disability-related requests or questions about whether an exception is legally required — property owners should review current HUD and Texas fair housing guidance and consider consulting a qualified attorney before making a final decision.

Make fair housing part of your property management practices

Fair housing issues can come up at any stage of the landlord-tenant relationship. Clear procedures, consistent documentation, and a willingness to review unusual situations carefully can help reduce risk and keep decisions grounded in current law.

Berkshire Hathaway HomeServices Caliber Realty can assist Texas property owners with rental marketing, tenant placement, and day-to-day property management.

Want to make rental property management less of a headache? Call 979-694-8844 or send us an email to get started.