Here’s a simple guide to help you get started in the right way.
Know Your Responsibilities as a Landlord
Before anything else, understand what you’re legally required to do as a landlord. You have a duty to keep your property safe and livable. This includes working smoke alarms, safe gas and electrical systems, and clean water. You must provide a safe and livable home, which means having secure locks, heating, and plumbing in good condition, and no serious hazards like mold or exposed wiring. In many states, you also need to register your rental property or apply for a rental license.
Cities like New York, Los Angeles, and Chicago have specific inspection and registration rules. Check with your local housing departments to ensure you’re compliant. You’ll also need landlord insurance. This differs from a standard homeowners policy, as it covers items such as damage caused by tenants, loss of rental income, and liability claims. It’s an important layer of protection. If you collect a security deposit, follow your state’s rules for holding and returning it. In some places, you’re required to keep it in a separate bank account and return it within a set number of days after the lease ends.
Prepare the Property Inside and Out
A property that looks good is more likely to attract good tenants.
Start with a deep clean:
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Wash the walls
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Clean carpets
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Scrub the bathrooms and kitchen
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If the paint is chipped or outdated, a fresh coat of neutral paint can go a long way.
Check that everything works:
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Light fixtures
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Appliances
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HVAC systems
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Plumbing
Replace anything that’s broken or near its end. Consider upgrades that make the home more appealing, like new blinds, updated hardware, or energy-efficient lighting. These don’t have to be expensive, but they can improve the experience for the tenant and justify higher rent.
Create a property inventory with photos and document the condition of each room, including flaws in the walls and appliances. This helps protect you in case there’s any dispute over damage when a tenant moves out. Decide whether to rent the home furnished or unfurnished. In most U.S. markets, unfurnished is more common, especially for long-term leases.
Screen Tenants Thoroughly
One of the most important decisions you’re going to make is who you rent to. A reliable tenant pays on time, takes care of the property, and respects the lease agreement. A careless tenant can cost you time and money. Start by creating a rental application that asks for income, employment history, previous landlords, and personal references. Check their standards for income; most landlords require monthly earnings that are at least three times the rent.
Always run a tenant background check. This step helps you confirm identity, check for past evictions, review credit history, and flag any criminal records. You need to find an option that is landlord-friendly and doesn’t require you to collect sensitive data directly. Make sure you are consistent and apply the same screening criteria to every applicant so you can stay compliant with fair housing laws. Avoid questions or policies that could be seen as discriminatory. Once you’ve selected a tenant, call their employer and previous landlords to ask if they paid rent on time, kept the home in good condition, and followed any terms in the lease.
Use a Solid Lease Agreement
Never rely on a handshake. Always have a written lease that clearly outlines the rental terms. This protects both you and your tenant. The lease should include the rent amount, due date, length of lease, security deposit terms, maintenance responsibilities, and rules around things like pets, smoking, and having guests.
It should also explain what happens if the tenant breaks the lease or fails to pay rent on time. You can find lease templates online, but make sure that the document complies with your state laws. You may want to have a local attorney review it to avoid any gaps.
Don’t forget disclosures; states require you to inform tenants of things like lead paint in homes that were built before 1978, recent flooding, or the presence of any mould. Check your state’s requirements and include the proper forms. Once the lease is signed, provide your tenant with a copy and keep a digital version for your records.
Stay Involved Without Hovering
Once your tenant moves in, it’s important for you to stay available and responsive. A good landlord maintains the property, responds to issues quickly, and follows the terms of the lease. Set up a clear way for tenants to report maintenance problems; this might be through email, phone, or a rental portal. Fix issues promptly; a dripping faucet today could become a bigger problem next week.
Quick action also shows the tenants that you take their concerns seriously. Respect your tenants’ privacy; you can’t show up unannounced. Most states require at least 24 hours’ notice before you enter the property, unless it’s an emergency. Schedule seasonal maintenance that might include servicing the HVAC system, checking for leaks, or clearing gutters.
Staying on top of small tasks helps to avoid major repairs later. Visit the property once or twice a year for a general inspection.
This gives you the opportunity to check for damage, update your inventory, and catch problems early.
Final Thoughts
Renting out your property can be rewarding, but it’s not a hands-off job. The key to success is preparation. When defining your responsibilities as a landlord, present a clean, functional property, screen tenants carefully, and make sure that you protect yourself with a written lease. Keep communication open and always make sure that you fix problems quickly.
The more work that you do upfront, the fewer surprises that you will face down the road. Make sure you treat your rental like a business and focus on long-term value, not just monthly rent. With the right approach, you can build a stable source of income and create a better experience for your tenants.
