Leasing License Practice Exam

Owners are exempt from the Fair Housing Act in how many units or less?

1. 2 units or less

2. 3 units or less

3. 4 units or less

4. 5 units or less

The correct answer is: 4 units or less

Owners are exempt from the Fair Housing Act when they rent out a property with four units or less because of specific provisions in the law that acknowledge the challenges smaller landlords may face. This exemption applies to owner-occupied buildings with up to four units, allowing landlords to rent out their property without adhering to the same Fair Housing regulations that larger landlords must follow. This provision is intended to balance the need for equal housing opportunities with the realities of managing smaller rental properties, reducing the regulatory burden on individuals who might only rent part of their home or a small multi-family property. The exemption recognizes the context of small-scale landlords and their potentially less sophisticated operations when compared to larger rental companies, which typically have more resources to manage compliance issues. In contrast, options indicating fewer than four units would not align with the established guidelines of the Fair Housing Act, thus making them incorrect in this context.