The rules for rental properties and occupancy rates are flexible. These guidelines should be understood.

You might be wondering if you can reduce the number of people living on your property.

There are many rules that govern occupancy rates and rental properties. Having more tenants means that your property will be subject to more wear and tear.

Where do you draw the line? Although you can set a maximum unit occupancy, it is best to speak with an attorney to make sure your policies don't discriminate. Here are some factors to be aware of when setting occupancy standards for your property.

Fair Housing Protections

Discrimination against children's families is prohibited. Families with children younger than 18 years old are eligible for the familial status protection provided by the Fair Housing Act. Families with children may be affected by certain occupancy restrictions. Even though an occupancy restriction does not exclude families with children from consideration, it could still make it difficult for families with children to rent. Consider how this might affect a family of two with children if you limit the number of people living in your two-bedroom apartment to three.

Discriminating against occupants on the basis of their national origin is also illegal. Even if the policy does not prohibit occupants from being excluded based on their ethnicity or race, an occupancy restriction may negatively impact adults who have a common national origin in multi-generational households.

Number Of Bedrooms

The standard of two people per bedroom is considered reasonable under the Fair Housing Act. There are exceptions to the standard, and it is important that you consider every circumstance regarding your rental property.

Local And State Ordinances

If your rental unit is in a state or city with its own occupancy guidelines, you need to ensure that your occupancy rules align with those laws. While some jurisdictions allow more people to live in smaller rental units, others may limit the number of allowed. An attorney can provide guidance regarding the occupancy laws in your particular city or state.

Size And Layout Of The Property

Occupancy rates can be affected by the square footage and configuration of your property. Some bedrooms are spacious enough to allow multiple children to share. Some bedrooms might not be spacious enough for multiple children to share, so it may be a good idea to limit occupancy. One potential tenant may consider adding a study or den to a one-bedroom apartment. Another might view it as an additional bedroom.

Capacity For Building Systems

The ability to accommodate the number of residents in a unit requires that the building's systems, such as the septic and sewer, can handle it. If you have more tenants than your building can handle, it may be okay to limit occupancy.

Age Of Children

Sometimes, two adults and an infant could share a small apartment with one bedroom. The same unit might not be suitable for three adults or two adults with a teenage child. It is crucial to evaluate all circumstances before rejecting a family member due to their size.

Addition Of New Occupants

You might notice a change in the life of your renter during their tenancy. One person may start a relationship. Your rental lease agreement should list everyone who intends to live at the property at the time you and the renter sign it, and it should specify how long visitors can stay. You can ask your tenant for permission to allow you to add a roommate or partner to your household. If the unit can accommodate an additional renter, you should still conduct a tenant screening and either revise your existing lease or create a new one that names the added renter. If there is a problem with the new occupant, this will help you avoid sticky situations.

Another thing to remember is that certain jurisdictions restrict your ability to evict a tenant or refuse to renew a lease if the family has a child. If in doubt, it is best to speak with an attorney who is familiarized with your specific state's laws.