ADA Compliance for Residential Rentals: What Every Landlord Must Know

By PropsManager Team · Legal & Compliance · Apr 02, 2025

A landlord in Phoenix got hit with a $42,000 settlement last year. His crime? Refusing to let a wheelchair-bound tenant install a ramp at his own expense. Forty-two thousand dollars — gone — because he didn't understand one simple legal distinction.

Here's the thing most landlords get wrong: they think ADA compliance is only about commercial properties. Restaurants, hotels, offices — that kind of stuff. And they're partially right. The Americans with Disabilities Act primarily covers public accommodations and commercial facilities. But if you think that means your residential rentals are off the hook, you're dangerously mistaken.

The Fair Housing Act (FHA) is the law that governs your rental units, and in many ways, it's even more demanding than the ADA. Violating it can cost you anywhere from $16,000 for a first offense to over $100,000 for repeat violations — and that's before attorney fees and compensatory damages enter the picture.

I've seen landlords lose properties over this. Not figuratively. Literally lose them. So let's walk through exactly what you need to know.

Understanding the Legal Landscape: ADA vs. Fair Housing Act

Before we get into specifics, let's clear up the confusion that trips up 90% of landlords.

The ADA's Role in Residential Properties

The ADA applies to "places of public accommodation." For residential properties, that means:

Leasing offices and model units — If you have a dedicated leasing office, it must be ADA-accessible. Ramps, accessible restrooms, the whole deal.
Common areas open to the public — Community rooms that host public events, parking structures, and amenity spaces.
HOA and condo association offices — These are considered public accommodations.

The ADA does not generally apply to the individual dwelling units themselves. That's where the Fair Housing Act takes over.

The Fair Housing Act: Your Primary Obligation

The Fair Housing Act prohibits discrimination based on disability (along with race, color, religion, national origin, sex, and familial status). It covers virtually all housing with very limited exceptions — basically only owner-occupied buildings with four or fewer units and single-family homes sold or rented without a broker.

Under the FHA, you have two main obligations:

Allow reasonable modifications to the physical structure
Provide reasonable accommodations in rules, policies, and services

These sound similar, but they're legally distinct. Confusing them is a fast track to a lawsuit. Let me break each one down.

Reasonable Modifications: Physical Changes to the Unit

A reasonable modification is a structural change made to the premises so a disabled tenant can fully use and enjoy the dwelling. Think grab bars in bathrooms, wider doorways, lowered countertops, ramp installations, or roll-in showers.

Your Legal Obligation

You must allow a disabled tenant to make reasonable modifications. This isn't optional. You can't say no because you don't like how it'll look or because you're worried about resale value. If the modification is reasonable and necessary for the tenant's disability, you permit it. Period.

Who Pays for Modifications?

This is where it gets nuanced:

Private housing (no federal funding): The tenant typically pays for the modification. You're not required to foot the bill, but you must allow the work to happen.
Federally funded housing (Section 504 properties): The landlord pays for reasonable modifications. If you accept HUD funding or project-based vouchers, this cost is on you.
State/local laws may differ: California, for instance, has additional protections that can shift costs. Always check your local statutes.

A landlord in Dallas told me he spent $3,200 fighting a tenant's request to install grab bars — a modification that would've cost maybe $150 in materials. Don't be that guy.

Can You Require Restoration?

Yes, with conditions. For modifications that go beyond normal wear and tear or that would make the unit unsuitable for the next tenant, you can require the tenant to restore the unit to its original condition when the lease ends. But this has to be reasonable.

Installing grab bars? You can ask for restoration (patching the screw holes). Widening a doorway? That actually benefits future tenants and most courts would say you can't demand restoration. Lowering kitchen countertops? That one's more arguable — you might be able to require it.

You can also require the tenant to put money into an interest-bearing escrow account during the tenancy to ensure restoration funds are available. But the amount has to be reasonable and based on actual estimated costs.

Common Modification Requests

Modification	Typical Cost	Who Pays (Private)	Restoration Required?
Grab bars in bathroom	$100–$300	Tenant	Usually yes (minor)
Wheelchair ramp	$1,000–$3,500	Tenant	Depends on construction
Wider doorways	$300–$1,500 per door	Tenant	Generally no
Roll-in shower	$2,500–$7,000	Tenant	Case-by-case
Lowered countertops	$1,500–$4,000	Tenant	Often yes
Lever-style door handles	$15–$50 per handle	Tenant	Usually no
Visual doorbell/fire alarm	$50–$200	Tenant	Usually yes

Reasonable Accommodations: Policy and Rule Changes

Reasonable accommodations are different from modifications. They don't involve physical changes — they're about changing rules, policies, practices, or services so a disabled tenant has equal opportunity to use and enjoy their home.

Service and Assistance Animals

This is the big one. And honestly, it's the area I see landlords mess up more than any other.

Under the Fair Housing Act, you must make exceptions to no-pet policies for assistance animals. This includes both trained service animals and emotional support animals (ESAs). You cannot charge pet deposits, pet rent, or pet fees for assistance animals. They're not pets under the law.

Look, I know some landlords roll their eyes at ESA letters. And yes, there's been abuse of the system. But here's what you need to understand: denying a legitimate assistance animal request is one of the most common FHA violations, and HUD takes it seriously. The average settlement in an assistance animal case runs $10,000–$30,000.

What you CAN do:

Request documentation of the disability-related need if it's not obvious
Ask for a letter from a healthcare provider (not an online ESA mill — HUD specifically flagged those in their 2020 guidance)
Deny the specific animal if it poses a direct threat to safety based on objective evidence (actual behavior, not breed)
Deny if the animal would cause substantial physical damage beyond normal wear

What you CANNOT do:

Require specific certifications, training documentation, or service animal vests
Charge any pet-related fees or deposits
Ask about the nature or extent of the person's disability
Limit the breed or size of assistance animals (breed-specific bans don't apply)
Require the animal to be professionally trained

Parking Accommodations

A mobility-impaired tenant requests a designated parking spot close to their unit. Even if your policy is "first come, first served," you must accommodate this. A landlord in Georgia thought he could charge $75/month extra for a reserved spot. He couldn't. The accommodation must be provided at no extra cost.

Other Common Accommodation Requests

Transfer to a ground-floor unit when available, for a tenant who can't use stairs
Permission to have a live-in aide even in a one-bedroom unit with single-occupancy rules
Early lease termination when a tenant's disability necessitates moving to a more accessible facility
Reserved mailbox at an accessible height
Flexible payment schedule if a tenant receives disability payments on a different day than rent is due

Each of these is a rule change, not a physical modification. The test is always whether the accommodation is (1) necessary because of a disability, (2) reasonable, and (3) doesn't impose an undue financial or administrative burden.

New Construction Requirements

If you're building or developing multi-family housing, this section is critical. Buildings with four or more units that were designed and constructed for first occupancy after March 13, 1991, must meet specific accessibility standards under the FHA.

The Seven Design Requirements

All ground-floor units (or all units in buildings with elevators) must have:

Accessible building entrance on an accessible route — no steps to get to the front door
Accessible common and public use areas — lobbies, mailrooms, laundry rooms, pools
Usable doors — wide enough for wheelchairs (minimum 32 inches of clear passage)
Accessible routes into and through the unit — hallways and passages navigable by wheelchair
Light switches, thermostats, and other controls in accessible locations — generally 15–48 inches from the floor
Reinforced bathroom walls — for later installation of grab bars (even if not installed at construction)
Usable kitchens and bathrooms — maneuvering space for wheelchairs

Here's what catches a lot of developers off guard: these requirements apply at the time of construction. You don't get to retrofit later and claim compliance. If your 1995-built apartment complex doesn't meet these standards, you can be liable for violations that occurred 30 years ago. There's limited statute of limitations protection because the FHA treats non-compliant design as a continuing violation.

Cost of Non-Compliance in New Construction

The DOJ has extracted settlements ranging from $50,000 to over $4 million for new construction violations. A developer in Virginia paid $2.1 million to settle allegations that their 300-unit complex lacked accessible routes and usable bathrooms. That's roughly $7,000 per unit — far more than compliance would've cost upfront.

State and Local Laws That Go Further

The FHA sets the floor, not the ceiling. Many states have their own disability discrimination laws that add protections:

California (FEHA): Broader definition of disability, and landlords may be required to pay for modifications in some circumstances
New York City: Requires reasonable modifications at the landlord's expense for buildings with three or more units
Illinois: Extends protections to cover assistance animals more broadly, including emotional support animals in condos
Massachusetts: One of the strictest states — covers virtually all housing with almost no exemptions

Always check what your state and municipality require. The federal law is your minimum obligation, not your maximum.

The Interactive Process: How to Handle Requests

When a tenant makes a disability-related request, you're expected to engage in an "interactive process." This doesn't mean you rubber-stamp everything. It means you have a good-faith dialogue.

Step-by-Step Process

Acknowledge the request promptly — don't ignore it or drag your feet. Respond within 10 business days at the absolute outside.
Verify the disability if not obvious — you can ask for documentation from a healthcare provider confirming the person has a disability and needs the accommodation. You cannot ask about diagnosis specifics.
Evaluate whether the request is reasonable — would it impose an undue financial burden? Fundamentally alter the nature of your operations? If not, it's reasonable.
Propose alternatives if necessary — if the specific request isn't feasible, suggest an equally effective alternative. Maybe they want a specific unit but you can offer a comparable one.
Document everything — every request, every response, every conversation. If this ends up in front of HUD or a judge, your paper trail is your defense.

Trust me on this one — the landlords who get into trouble aren't usually the ones who deny clearly unreasonable requests. They're the ones who never responded at all, or who said "no" without explanation, or who didn't document a thing.

Common Mistakes That Lead to Lawsuits

After fifteen years in property management, I've seen the same mistakes over and over:

1. Blanket "No Pets" Enforcement

You post a "No Pets" policy and enforce it uniformly. A tenant submits an ESA letter. You deny it because "we don't allow any pets." Congratulations, that's a textbook FHA violation.

2. Requiring Service Animal Certification

A tenant shows up with a service dog. You ask for papers. There's no national service animal registry. No certification is required. By demanding documentation that doesn't exist, you've just discriminated.

3. Charging Pet Deposits for Assistance Animals

Even if your lease says all animals require a $500 pet deposit, you cannot charge this for assistance animals. The animal isn't a pet. The deposit doesn't apply.

4. Refusing Modifications Because of Aesthetics

"We don't allow exterior ramps because they don't match the building's look." This will not hold up. Aesthetic preferences don't override civil rights.

5. Failing to Respond to Requests

The most dangerous mistake is doing nothing. A tenant makes a request and you ignore it, hoping it goes away. Under HUD guidelines, an unreasonable delay in responding is functionally equivalent to denial.

How Technology Helps You Stay Compliant

Managing accommodation requests across multiple units gets complicated fast. One missed request, one undocumented conversation, and you're exposed.

This is where property management software like PropsManager becomes essential. You can track maintenance requests and modification approvals in one place, keeping a timestamped digital record of every interaction. No more sticky notes or lost emails.

With PropsManager's maintenance tracking tools, you can:

Log accommodation requests with dates and supporting documentation
Set automated reminders for response deadlines
Track modification approvals through completion
Store all disability-related correspondence securely
Generate compliance reports when needed

When you're managing 10, 50, or 200+ units, having a centralized system isn't a luxury — it's a compliance necessity. Check out our pricing plans to see what works for your portfolio size.

ADA Compliance Checklist for Landlords

Use this quick-reference checklist to audit your compliance:

Leasing office is ADA-accessible (if applicable)
Common areas meet accessibility standards
No-pet policies include assistance animal exceptions
Staff trained on accommodation/modification procedures
Written process for handling disability-related requests
Response timeline established (aim for 5–10 business days)
Documentation system in place for all requests and responses
Lease language doesn't contain discriminatory terms
New construction meets FHA design requirements (post-1991)
State and local disability laws reviewed and incorporated
Escrow account process established for modification restorations
Insurance reviewed for discrimination liability coverage

If you can't check off every item, you've got work to do. And the time to do it is before a complaint is filed, not after.

Explore More PropsManager Resources

Looking for the right property management software? Check out our in-depth guides:

Compare Property Management Software — See how PropsManager stacks up against Buildium, AppFolio, Rent Manager, and Propertyware.
Software for Small Landlords — Built for landlords managing 1–50 units without the enterprise price tag.
AI-Powered Property Management — Discover how automation can save you 5–10 hours per week.
Solutions for Property Managers — Scale from 50 to 500+ units without scaling your costs.

Frequently Asked Questions

Does the ADA apply directly to my residential rental units?

Generally, no. The ADA primarily covers public accommodations and commercial spaces. For residential rental units, the Fair Housing Act (FHA) is the governing law. However, if your property has a leasing office, community room, or other public-facing spaces, those areas must comply with ADA standards. The practical impact for most landlords is that the FHA's requirements for reasonable modifications and accommodations are what you need to focus on.

Can I charge a pet deposit or pet rent for a tenant's emotional support animal?

No. Under the Fair Housing Act, emotional support animals and service animals are not considered pets. You cannot charge pet deposits, pet rent, or any other pet-related fees. You also can't apply breed or weight restrictions to assistance animals. However, the tenant is still responsible for any damage the animal causes — you can deduct repair costs from the standard security deposit just like you would for any other tenant-caused damage.

What documentation can I legally request when a tenant claims a disability-related need?

If the disability and the need for the accommodation are not obvious, you can request a letter from a healthcare provider confirming (1) the person has a disability as defined by the FHA, and (2) there is a disability-related need for the requested accommodation or modification. You cannot ask for specific medical records, a diagnosis, or detailed medical history. HUD's 2020 guidance also noted that letters from online-only ESA services may warrant additional scrutiny, and you can request supplemental verification from a treating provider who has an established relationship with the tenant.

Am I liable if my building was constructed after 1991 and doesn't meet FHA design standards?

Yes, and this is a significant risk. The FHA's new construction requirements are treated as a continuing violation, meaning the statute of limitations may not shield you even decades after construction. The Department of Justice has pursued cases against properties built in the 1990s and secured multi-million-dollar settlements. If you own or purchased a property built after March 13, 1991, it's worth having an accessibility consultant audit the building. Remediation now is far cheaper than litigation later.

What happens if I deny a reasonable accommodation request?

If you deny a legitimate request without proper justification, the tenant can file a complaint with HUD, their state fair housing agency, or pursue a private lawsuit. HUD complaints typically result in investigation and potential conciliation. If the case goes to an administrative law judge or federal court, penalties for a first violation can reach $16,000 (adjusted for inflation — it's now over $21,000). Repeat violations can exceed $100,000. Compensatory and punitive damages are uncapped in private lawsuits. Beyond the financial hit, you'll also face legal costs, reputational damage, and potential injunctive relief requiring you to change your policies and attend fair housing training.

Take Compliance Seriously — Before It Costs You

Look, nobody gets into property management because they love reading federal regulations. But disability compliance isn't one of those things you can wing. The stakes are too high and the rules are too clear.

The good news? Compliance is mostly about common sense and documentation. Allow modifications. Make reasonable exceptions to your rules. Respond to requests promptly. Write everything down. That's 90% of it.

For the other 10% — tracking requests across units, maintaining documentation trails, hitting response deadlines — PropsManager has you covered. Our platform is built for landlords who want to run compliant, professional operations without drowning in paperwork.

Ready to streamline your property management and reduce compliance risk? Request a demo today and see how PropsManager makes it easier to stay on the right side of the law.