I recently bought a property that I think will be attractive to senior renters. What are some considerations for that market?
If you are considering marketing your property as senior living, age-restricted housing, usually referred to as 55+ living or a 62 + community, there are several issues to consider.
The federal Department of Housing and Urban Development (HUD) regulates senior communities to ensure their compliance with the Housing for Older Persons Act of 1995 (HOPA).
HOPA amended the requirements for qualification for the housing of persons who are 55 years of age or older portion of the housing for older persons exemption established in the Fair Housing Act. However, a housing community is not exempt from the provisions of the Fair Housing Act that prohibits discrimination against any resident or potential resident on the basis of race, color, religion, national origin, sex, or disability.
If the housing community is intended and operated for occupancy by persons 55 years or older, the following requirements must be met in order to qualify for the HOPA exemption:
- at least 80 percent of the community’s occupied units must be occupied by at least one person 55 years of age or older per unit;
- the owner or management of the housing community must publish and adhere to policies and procedures that demonstrate an intent to provide housing for persons 55 years or older; and
- the community must comply with rules for verification of occupancy through reliable surveys and affidavits.
Additionally the housing community must demonstrate an intent to provide housing for persons 55 years of age or older in policies and procedures that includes:
- a) the written rules, regulations, lease provisions, deed or other restrictions;
- b) the actual practices of the owner/management of the housing community used in the enforcement of the rules;
- c) the kind of advertising used to attract prospective residents to the housing community as well as the manner in which the community is described to prospective residents;
- d) the housing community’s age verification procedures, and its ability to produce, in response to a familial status complaint, verification of required occupancy.
Once a community meets the HOPA exemption requirements, housing communities can define their own rules on age restrictions that could be more restrictive than the federal law as long as the community is in compliance with state laws.
Due diligence should be conducted to clarify community rules and HOPA exceptions, particularly in the case that a resident has a spouse younger than 55 years. Since typically only one person in the unit must be at least 55 years or older, there should be no issue for a younger spouse to occupy the unit. Clarification may still be needed in the case of children or grandchildren needing to reside in the unit but are under the community age requirement.
For senior living at a 62+ community, everyone in the household must be at least 62 years old. The only exceptions to the age requirement would be live-in aides, or healthcare providers.
If you are thinking in general about marketing your property to a specific applicant pool, such as seniors, be sure you understand fair housing requirements for marketing and advertising, and follow fair housing provisions against discrimination of the protected classes. You may inadvertently violate fair housing laws if you are not familiar with federal, state, and local requirements. Be mindful that senior tenants can be members of a protected class, such as a physical or mental disability. You cannot ask them if they require reasonable accommodations. If the tenant does make a reasonable accommodation request you are required to make the accommodation at your expense. Senior tenants will need to qualify to your rental standards as applicants in their own right.
You should offer your property to all rental prospects according to your rental policies and practices. If your property is maintained to habitability standards, has comparable amenities, market rents, and probably most important, a good location, you will find the property attractive to many prospective tenants.