Navigating Kansas City’s Ordinance 231019: A Comprehensive Guide for Landlords on Tenant Screening Compliance

As of August 1, 2024, Kansas City landlords must comply with Ordinance 231019, a regulation designed to eliminate housing discrimination based on factors such as source of income, rental history, credit score, and criminal history. While the ordinance aims to promote fair housing opportunities, it introduces significant changes to tenant screening processes.This guide provides an overview of the ordinance’s key provisions, compliance requirements, and strategies for landlords to adapt effectively.

Key Provisions of Ordinance 231019

Ordinance 231019 introduces several critical changes to the tenant screening and application process:

  • Source of Income Protection: Landlords must consider all lawful, verifiable sources of income when evaluating rental applications. This includes wages, government assistance (such as Section 8 vouchers), child support, and other legal income streams. Refusing to rent solely based on a tenant’s source of income is prohibited.

  • Elimination of Pre-Screening: Landlords are no longer permitted to advertise or disclose their rental screening criteria before receiving a written application from a prospective tenant. This measure aims to prevent potential discrimination during the initial stages of tenant selection.

  • Prohibited Criteria for Denying Tenancy: Denying tenancy based solely on adverse credit history, evictions older than one year, or prior criminal convictions is forbidden. Landlords must consider mitigating factors, such as efforts to resolve financial issues or evidence of rehabilitation, before making a decision.

  • Rent-to-Income Ratio Adjustments: When calculating rent-to-income ratios, landlords must include all lawful income sources. For tenants utilizing government vouchers, the ratio should apply only to the tenant’s portion of the rent, ensuring equitable assessment of financial capability.

Compliance Requirements for Landlords

To adhere to Ordinance 231019, landlords should implement the following measures:

  • Update Rental Advertisements and Applications: Ensure that property advertisements focus solely on the property’s features without specifying tenant qualifications. All rental applications must include the non-discrimination statement: “The landlord does not discriminate based on source of income.”

  • Develop Non-Discriminatory Screening Policies: Revise existing screening policies to eliminate any practices that could be deemed discriminatory under the new ordinance. This includes standardizing income verification procedures and ensuring consistent application of criteria across all applicants.clerk.kcmo.gov

  • Maintain Detailed Records: Keep comprehensive records of all rental applications, including income sources and reasons for acceptance or denial, for at least three years. This documentation is crucial for demonstrating compliance and protecting against potential legal challenges.

  • Provide Staff Training: Educate property management staff on the requirements of Ordinance 231019, emphasizing the importance of non-discriminatory practices and proper documentation. Training should cover recognizing and preventing discriminatory behaviors and implementing fair screening processes.

Strategic Approaches for Landlords

While the ordinance imposes new restrictions, landlords can adopt strategies to remain compliant while safeguarding their properties:

  • Holistic Tenant Evaluations: Assess applicants by considering multiple factors, such as credit history, rental history, and personal references. For example, while an adverse credit history alone cannot justify denial, combining it with other concerns like a pattern of late payments or insufficient rental references may provide legitimate grounds for rejection.

  • Consistent Application of Screening Criteria: Apply uniform screening standards to all applicants, ensuring fairness and reducing the risk of discrimination claims. Document each evaluation thoroughly to demonstrate adherence to consistent practices.

  • Utilize the Landlord Risk Mitigation Fund: The ordinance establishes a $1 million Landlord Risk Mitigation Fund to cover potential damages or losses associated with renting to higher-risk tenants. Leveraging this fund can mitigate financial exposure and encourage compliance with the ordinance’s provisions.MAREI

Consequences of Non-Compliance

Failure to comply with Ordinance 231019 can result in significant penalties:

  • Fines and Penalties: Violations can lead to fines of up to $1,000 per instance, which can accumulate quickly and result in substantial financial burdens.

  • Probationary Status: Landlords with multiple violations within a twelve-month period may be placed on Special Probationary Status, requiring the completion of a corrective action plan and subjecting them to increased oversight.

  • Legal Action: Persistent non-compliance can lead to legal proceedings, including potential imprisonment of up to 180 days, further escalating financial and reputational risks.

Conclusion

Navigating the complexities of Ordinance 231019 is essential for Kansas City landlords to ensure compliance and maintain successful property management practices. By updating policies, providing staff training, and adopting strategic approaches to tenant screening, landlords can align with the ordinance’s objectives while protecting their investments.

For personalized assistance in managing your rental properties and ensuring compliance with local regulations, contact Alpine Property Management Kansas City. Our expertise can help you adapt to these changes seamlessly and continue to thrive in the evolving housing market.

Staying Compliant: How Kansas City Landlords Must Update Rental Ads Under Ordinance 231019

If you own rental property in Kansas City, you need to know about Ordinance 231019—and fast. This new ordinance changes how landlords are allowed to advertise their rental properties, with a focus on eliminating language that could be considered discriminatory. Whether you manage a handful of single-family homes or multiple multifamily units, understanding these updates is critical to avoiding fines and staying compliant.

Let’s break down what you need to change—and why it matters.


What Is Ordinance 231019?

Kansas City’s Ordinance 231019 was passed to prevent discrimination in rental housing advertisements. The goal is to level the playing field for all applicants by ensuring landlords focus on the property—not the person they’d ideally like to rent to.

This means that any reference to a prospective tenant’s income, credit score, criminal background, or use of housing vouchers could now be interpreted as discriminatory. The new rule aims to prevent bias during the initial marketing phase.


What Landlords Must Remove From Ads

Under the new ordinance, landlords must immediately revise how they present rental listings. Here are the key things that must be removed or avoided in all advertisements:

• Criteria for an Ideal Tenant

Do not describe who you’re looking for. Phrases like “quiet professional,” “ideal for a single person,” or “must have good credit” are no longer acceptable.

• Income Requirements or Source of Income

You may not include any language about how much a tenant must make, nor exclude tenants based on how they earn their income (e.g., vouchers, benefits, etc.).

• Rental History or Criminal Record Disclaimers

Avoid statements like “No Prior Evictions” or “No Felons.” These are now viewed as discriminatory and are explicitly prohibited.

• Screening Standards (Before Application)

Landlords are not allowed to share their screening criteria before a rental application is submitted. Even if a prospective tenant asks, you’re required to hold off on revealing that information.


What You Can Say in a Rental Ad

So what can you include in your rental listings? Stick to describing the property itself:

  • Number of bedrooms and bathrooms
  • Square footage
  • Monthly rent and deposit amount
  • Whether pets are allowed
  • Amenities (washer/dryer, parking, outdoor space, etc.)
  • Neighborhood or nearby landmarks
  • Lease terms (length, renewal options, etc.)

By focusing solely on the unit and not the tenant, you reduce your risk and ensure you’re operating within the law.


Why Compliance Matters

Violating Ordinance 231019 could result in financial penalties, damaged reputation, or even legal consequences. Beyond that, it sends the wrong message to prospective renters who are protected under fair housing laws.

As a landlord, you have every right to screen applicants—but only after they apply. This creates a fairer process and ensures your property is accessible to all qualified renters.


Need Help Navigating the Changes?

If you’re unsure how to adjust your listings or want to make sure you’re compliant, Alpine Property Management Kansas City can help. We stay up to date on all local ordinances and handle advertising, tenant screening, leasing, and compliance—so you don’t have to worry.

Reach out today and let our team make property management stress-free, legal, and profitable.


Contact Alpine Property Management Kansas City Contact Us:

Or give is a call at: 816-343-4520

Navigating Kansas City’s Ordinance 231019: A Guide for Landlords on Tenant Screening Compliance

As of August 1, 2024, Kansas City landlords must comply with Ordinance 231019, a regulation designed to eliminate housing discrimination based on factors such as source of income, rental history, credit score, and criminal history. While the ordinance aims to promote fair housing opportunities, it introduces significant changes to tenant screening processes.This guide provides an overview of the ordinance’s key provisions, compliance requirements, and strategies for landlords to adapt effectively.alpinekansascity.com

Key Provisions of Ordinance 231019

Ordinance 231019 introduces several critical changes to the tenant screening and application process:

  • Source of Income Protection: Landlords must consider all lawful, verifiable sources of income when evaluating rental applications. This includes wages, government assistance (such as Section 8 vouchers), child support, and other legal income streams. Refusing to rent solely based on a tenant’s source of income is prohibited.

  • Elimination of Pre-Screening: Landlords are no longer permitted to advertise or disclose their rental screening criteria before receiving a written application from a prospective tenant. This measure aims to prevent potential discrimination during the initial stages of tenant selection.clerk.kcmo.gov

  • Prohibited Criteria for Denying Tenancy: Denying tenancy based solely on adverse credit history, evictions older than one year, or prior criminal convictions is forbidden. Landlords must consider mitigating factors, such as efforts to resolve financial issues or evidence of rehabilitation, before making a decision.

  • Rent-to-Income Ratio Adjustments: When calculating rent-to-income ratios, landlords must include all lawful income sources. For tenants utilizing government vouchers, the ratio should apply only to the tenant’s portion of the rent, ensuring equitable assessment of financial capability.

Compliance Requirements for Landlords

To adhere to Ordinance 231019, landlords should implement the following measures:

  • Update Rental Advertisements and Applications: Ensure that property advertisements focus solely on the property’s features without specifying tenant qualifications. All rental applications must include the non-discrimination statement: “The landlord does not discriminate based on source of income.”

  • Develop Non-Discriminatory Screening Policies: Revise existing screening policies to eliminate any practices that could be deemed discriminatory under the new ordinance. This includes standardizing income verification procedures and ensuring consistent application of criteria across all applicants.

  • Maintain Detailed Records: Keep comprehensive records of all rental applications, including income sources and reasons for acceptance or denial, for at least three years. This documentation is crucial for demonstrating compliance and protecting against potential legal challenges.Anderson & Associates+1alpinekansascity.com+1

  • Provide Staff Training: Educate property management staff on the requirements of Ordinance 231019, emphasizing the importance of non-discriminatory practices and proper documentation. Training should cover recognizing and preventing discriminatory behaviors and implementing fair screening processes.

Strategic Approaches for Landlords

While the ordinance imposes new restrictions, landlords can adopt strategies to remain compliant while safeguarding their properties:

  • Holistic Tenant Evaluations: Assess applicants by considering multiple factors, such as credit history, rental history, and personal references. For example, while an adverse credit history alone cannot justify denial, combining it with other concerns like a pattern of late payments or insufficient rental references may provide legitimate grounds for rejection.

  • Consistent Application of Screening Criteria: Apply uniform screening standards to all applicants, ensuring fairness and reducing the risk of discrimination claims. Document each evaluation thoroughly to demonstrate adherence to consistent practices.

  • Utilize the Landlord Risk Mitigation Fund: The ordinance establishes a $1 million Landlord Risk Mitigation Fund to cover potential damages or losses associated with renting to higher-risk tenants. Leveraging this fund can mitigate financial exposure and encourage compliance with the ordinance’s provisions.

Consequences of Non-Compliance

Failure to comply with Ordinance 231019 can result in significant penalties:

  • Fines and Penalties: Violations can lead to fines of up to $1,000 per instance, which can accumulate quickly and result in substantial financial burdens.

  • Probationary Status: Landlords with multiple violations within a twelve-month period may be placed on Special Probationary Status, requiring the completion of a corrective action plan and subjecting them to increased oversight.clerk.kcmo.gov+2Anderson & Associates+2alpinekansascity.com+2

  • Legal Action: Persistent non-compliance can lead to legal proceedings, including potential imprisonment of up to 180 days, further escalating financial and reputational risks.

Conclusion

Navigating the complexities of Ordinance 231019 is essential for Kansas City landlords to ensure compliance and maintain successful property management practices. By updating policies, providing staff training, and adopting strategic approaches to tenant screening, landlords can align with the ordinance’s objectives while protecting their investments.

For personalized assistance in managing your rental properties and ensuring compliance with local regulations, contact Alpine Property Management Kansas City. Our expertise can help you adapt to these changes seamlessly and continue to thrive in the evolving housing market.

More From Alpine Kansas City: 
How to Maximize Rent Prices in the Kansas City Market Without Losing Tenants
Why Out-of-State Investors Rely on Alpine to Manage Their Kansas City Rentals
The Benefits of Using a 1031 Exchange in Real Estate

Understanding Kansas City Ordinance 231019: A Guide for Property Owners

As of August 01, 2024, Kansas City landlords are required to comply with the newly introduced Ordinance 231019, which focuses on eliminating housing discrimination based on source of income, rental history, credit score, and criminal history. This ordinance seeks to create fairer housing opportunities for prospective tenants but presents several implications for property owners and managers. In this blog, we’ll break down the key provisions of the ordinance, its compliance requirements, and how landlords can adjust their practices to mitigate risks while maintaining high rental standards.

Key Provisions of Ordinance 231019

The ordinance brings significant changes to how rental applications are processed. Here are some of the most impactful provisions:

  1. Source of Income Protection: Landlords must now consider all lawful sources of income for rental applications, including wages, government assistance (such as vouchers), child support, and more. It’s important to note that landlords can no longer deny tenants solely based on their source of income.
  2. Elimination of Pre-Screening: Landlords can no longer share their rental screening criteria with prospective tenants before a written application is submitted. This means advertising based on tenant qualifications, such as credit score or employment history, is prohibited.
  3. Prohibited Criteria for Denying Tenancy: Landlords cannot deny tenancy based solely on adverse credit history, evictions that occurred more than a year ago, or prior criminal convictions. Instead, landlords must consider mitigating circumstances, such as efforts to resolve financial issues or proof of rehabilitation.
  4. Rent-to-Income Ratio: The rent-to-income ratio must consider only the portion of rent covered by a tenant’s government voucher. This ensures that tenants who rely on rental assistance are not unfairly penalized in the application process.

Compliance Requirements for Landlords

Adhering to Ordinance 231019 requires several important changes in daily operations. Some of the key compliance measures include:

  • Update Rental Advertisements and Applications: Ensure that property ads only describe the property itself and do not suggest criteria for prospective tenants. All rental applications must now include a non-discrimination statement affirming that source of income will not be a basis for rejection.
  • Non-Discriminatory Screening Policies: Update your rental screening process to eliminate any policies that could be seen as discriminatory, especially those related to credit history, criminal convictions, or government assistance.
  • Record-Keeping: Landlords must keep detailed records of all rental applications, denials, and income sources for a minimum of three years. Maintaining these records helps demonstrate compliance and provides protection in case of audits or complaints.
  • Staff Training: Ensure your property management team is fully trained on the ordinance, including how to handle tenant inquiries and rental applications without pre-screening. Employees should also be aware of the new non-discrimination policies and the importance of consistent documentation.

Strategic Approaches for Landlords

Although the ordinance introduces stricter guidelines, landlords can adopt strategies to remain compliant while safeguarding their properties:

  • Holistic Tenant Evaluations: While adverse credit or past evictions cannot be the sole basis for rejection, landlords can evaluate these factors in combination with other criteria, such as personal references, recency of financial issues, and the overall rental history of the tenant.
  • Consistency in Screening: Apply the same standards to all applicants, regardless of their income source or background, and document your decisions thoroughly. This ensures fairness and reduces the risk of discrimination claims.
  • Utilize the Landlord Risk Mitigation Fund: Ordinance 231019 establishes a $1 million fund to help landlords offset potential risks when accepting higher-risk tenants. This fund can help cover damages or other losses, making it easier to accommodate tenants who may otherwise pose a financial risk.

The Consequences of Non-Compliance

Failure to comply with Ordinance 231019 can result in severe penalties, including:

  • Fines up to $1,000 per violation: These fines can accumulate quickly, particularly if non-compliance is widespread across a landlord’s properties.
  • Probationary Status: Landlords with multiple violations may be placed on probation, requiring corrective action plans and heightened oversight.
  • Legal Action: Persistent non-compliance may result in legal actions, including possible jail time of up to 180 days for severe or repeat offenders.

Take Action Now

Understanding and implementing the requirements of Ordinance 231019 is crucial for any Kansas City property owner. At Alpine Property Management, we specialize in navigating local regulations while providing comprehensive property management services that protect your investments and ensure compliance with all legal requirements. Let us help you stay ahead of the curve while maintaining high standards for tenant screening and property upkeep.

Contact us today to learn more about how Alpine Property Management can help you manage your Kansas City properties in compliance with this new ordinance. We offer tailored solutions that meet the unique needs of property owners while maximizing rental income and ensuring tenant satisfaction.