The Problem with Discrimination in MTRs: Why It’s Bad for Business

When it comes to renting out your property, following Fair Housing Laws isn’t just the right thing to do—it’s also good for business. If you operate a Mid-Term Rental (MTR) and rent your property for month-long stays, you are legally a landlord and must comply with landlord-tenant laws, including Fair Housing regulations.

Let’s talk about why discrimination is a bad strategy—for both ethical and financial reasons.

1. Legal Risks: Discrimination Can Get You Sued (and Fined!)

Fair Housing violations are serious. If a tenant files a complaint, you could face fines, lawsuits, and in some cases, your rental operation could even be shut down. Not knowing the law won’t exempt you from the consequences. The cost of a legal battle can far exceed the cost of simply treating all applicants fairly from the start.

2. Smaller Tenant Pool = More Vacancies

When you discriminate, you shrink your pool of potential tenants. Excluding renters for personal biases only makes it harder to fill vacancies.

Proper tenant screening is essential—but there’s a big difference between vetting tenants responsibly and restricting applicants based on discriminatory bias. Mid-term rentals thrive on consistent occupancy, and when you eliminate qualified renters for reasons unrelated to their ability to pay rent or meet legal lease requirements, you only make it more difficult to keep your property filled.

A well-vetted tenant is one who meets clear, fair, and legal screening criteria—not one who is excluded based on personal biases. The more unnecessary restrictions you place, the longer your property may sit vacant—losing you money.

3. Reputation Matters

Bad business practices spread fast. If renters suspect you’re unfair, they’ll share it—whether it’s through reviews, word-of-mouth, or social media.

For Mid-Term Rentals (MTRs), where tenants stay for months at a time, it takes longer to build up reviews compared to Short-Term Rentals (STRs), where hosts may get 10+ reviews in a month. That means one bad review can really stand out—and it can be tough to bounce back from. 

MTRs thrive on trust and reputation, and the way you treat applicants today will shape how your rental business grows in the long run.

4. Even If You’re Exempt, Don’t Be That Landlord

Some rental properties may qualify for exemptions under the Fair Housing Act. But just because you can legally discriminate in certain cases doesn’t mean you should.

Despite what’s happening in this country today in 2025—with fair housing protections being undermined and discrimination becoming more blatant in some spaces—you still have the power to do the right thing. Running a rental business with integrity and fairness isn’t just about laws; it’s about being a decent person, protecting the image of landlords as a whole, and setting a higher standard for this industry.

I encourage you to play the long game: operate ethically, treat all applicants fairly, and build a strong reputation that keeps your MTR business thriving.

The Bottom Line

Fair Housing laws exist for a reason. Running an ethical, inclusive Mid-Term Rental business isn’t just about following the rules—it’s about protecting your business, keeping your property occupied, and maintaining a reputation that helps you succeed long-term.

Discrimination doesn’t just put you at legal risk—it can cost you money, damage your reputation, and make it harder to fill vacancies. Whether or not you’re legally required to follow Fair Housing laws, choosing to treat all applicants fairly really is the right move—for both ethical and financial reasons.

Keep your eye on the long game: operate with integrity, follow fair and legal screening practices, and build a rental business that thrives on trust.