Renting out a house for the first time can be both exciting and challenging. Renting out a house for the first time requires careful planning and knowledge of key steps to avoid costly mistakes. From conducting a full property inspection to understanding landlord laws, this process involves many important tasks.
For example, knowing things to do before renting out your house, such as fixing safety issues and cleaning thoroughly, can attract better tenants. Learning what to do as a landlord, including how to screen tenants and set rent, is vital.
This guide covers essential tips for becoming a landlord, property renting tips, and explains how to lease out a house effectively. Following these steps ensures you start your landlord journey with confidence and success.
Quick Facts Table About Renting Out a House For the First Time
1. Do a Full Rental Property Inspection and Fix Safety Issues
A full inspection is key before renting out your house. It keeps tenants safe and meets legal rules. If you miss problems, tenants can get hurt. You might face lawsuits or big repair bills.
Key tasks
- Test smoke detectors and carbon monoxide alarms to make sure they work.
- Check electrical outlets and lights for safety.
- Look for leaks or water problems in pipes.
- Fix loose railings, broken steps, or cracked floors.
- Make sure heating and cooling systems run well.
- Check doors and windows to make sure they lock tightly and open easily in emergencies.
- Search for mold or pests and fix these issues fast.
Pro Tip
Hire a licensed inspector to find hidden issues like bad wiring or bugs. Use a checklist to cover every room and outside areas. Take photos and notes. This helps you follow landlord 101 rules and shows tenants you care. Depending on your area, you may have to apply for a rental license.
2. Clean and Prepare the House for Rent
Cleaning and prepping your house is one of the top things to do before renting out your house. A spotless, move-in-ready home draws good tenants. It also helps you set a higher rent. Dirty or worn homes scare renters away and lower your income. You should expect the same level of cleanliness from your future renters at move-out.
Key Tasks
- Deep clean carpets, windows, and kitchen appliances.
- Wash walls and repaint with neutral colors like white or beige. These colors please most renters.
- Fix or replace old light fixtures, door handles, and faucets.
- Trim bushes, mow the lawn, and tidy the yard. A neat yard makes a great first impression.
Pro Tip:
Consider hiring a professional stager or professional photographer who will create beautiful staged photos without having to move any furniture. Staging can boost your home’s appeal and raise its value by up to 10%. Stagers arrange furniture and decor to show the home’s best features. This is a smart property renting tip to attract tenants fast.
3. Use Market Research to Set the Right Rent
Setting the right rent is key to things to do before renting out your house. The price is too high, and your property stays empty. The price is too low, and you lose money. Smart pricing helps attract tenants fast while maximizing income.
Key Tasks
- Compare the rents of similar homes. Look for properties with the same size, bedrooms, and features.
- Factor in special amenities such as parking, laundry, or a backyard. These add value and justify higher rent.
- Adjust the rent based on location. A home near good schools or public transit can demand more.
Pro Tip
Offer a small discount for longer leases. For example, reduce rent by 5% for a 24-month lease. This lowers tenant turnover and keeps your rental occupied longer.
Detailed Example
If you rent a 3-bedroom house near a popular school, check what similar homes charge. Suppose most landlords list for $1,500/month. If your home has a new washer/dryer and off-street parking, you might set rent at $1,600. But if your home is farther from transit, you may need to lower the rent to $1,400 to attract tenants.
Additional Advice
Talk to local real estate agents or property managers. They know current market trends and can help you set competitive rent. Use social media groups to ask renters about what amenities they want and what they pay. This helps you tailor your offer and price.
4. Know Federal, State, and Local Landlord Laws
You need to know the regulations of landlords before you rent out your residence. If you break these restrictions, you might be fined, sued, or have to wait longer to move out. Laws are good for both landlords and renters. If you know them, you can avoid making expensive errors and keep your rental running well.
Key Tasks
- Look into the Fair Housing Act. This federal legislation says that you can't treat someone differently because of their race, colour, religion, sex, handicap, family status, or country of origin. You can't refuse to rent to a family with kids or put up a sign that says "no kids."
- Find out what your state's policies are about evictions and security deposits. Every state has its own rules and deadlines. For example, some jurisdictions require a 30-day notice before someone may be evicted, while others allow less time.
- Get all the licences or permissions you need. Before renting, several cities demand rental licences or inspections.
Pro Tip
Join a local landlord association. These groups provide updates on changing laws and offer legal advice. They also share property renting tips and landlord 101 knowledge to help you stay compliant.
Detailed Example
If you rent in California, you must follow strict eviction laws and rent control ordinances. In Texas, rules are different, with shorter notice periods. Knowing your local laws ensures you handle tenant issues legally and fairly.
5. Market Your Property and Attract Tenants
Effective marketing for rental services cuts vacancy time and finds quality tenants fast. It is a key step in things to do before renting out your house. Good marketing helps your property stand out in a crowded rental market.
Key Tasks
- List your property on popular sites like Zillow, Facebook Marketplace, and Craigslist. These platforms reach many renters looking for homes.
- Use high-quality pictures that highlight clean interiors, natural light, and modern features. For instance, draw attention to a "new kitchen" or a "pet-friendly yard."
- Make virtual tours or video walkthroughs so that potential buyers may look around the house online.
- Write clear, interesting descriptions that talk about neighbourhood facilities like schools, parks, and public transportation.
- To keep potential tenants interested, respond to questions immediately, within 24 hours.
Pro Tip
Use social media ads on Facebook or Instagram to target renters by age, location, and interests. You can also host open houses to let people see the home in person.
Detailed Example
If your rental has a new washer/dryer and a fenced backyard, mention these perks. Post photos showing these features. On Zillow, include a virtual tour. Share the listing on local Facebook groups. When someone asks about the property, reply promptly and offer a showing.
6. Run Tenant Background Checks the Right Way
A full tenant background check is one of the most critical things to conduct before renting out your residence. It helps lower the chances of things like late rent payments, property damage, or the expenses of eviction. A proper screening method protects your money and makes sure you get decent renters.
Key Tasks
- Verify employment by contacting the tenant’s employer. Confirm stable income that is at least 2.5 times the rent.
- Check rental history by calling previous landlords. Ask about payment timeliness, property care, and any lease violations.
- Review credit scores to assess financial responsibility. Look for on-time payments, a low debt-to-income ratio, and no recent bankruptcies.
- Conduct criminal background checks using state and federal databases. Ensure no recent evictions or serious offenses.
Pro Tip
You can automate tenant screening legally and quickly by using trustworthy software like LeaseRunner. This saves time and makes sure that fair housing regulations are followed.
Detailed Example
Before renting, ask your applicant to fill out a detailed rental application. Verify their job by calling HR or their manager. Contact past landlords to confirm they paid rent on time and left the property in good shape. Run a credit report to check their financial health.
Finally, screen for criminal records to avoid risky tenants. This process helps you follow landlord 101 best practices and secure a trustworthy renter.
7. Create a Clear and Fair Lease Agreement
A clear lease is one of the most important things to do before renting out your house. It sets rules for both you and your tenant. A strong lease helps prevent disputes and protects your rights as a landlord.
Key Tasks
- Specify when rent is due, how to pay, and any late fees. For example, rent might be due on the 1st of each month, with a 5% late fee after the 5th day.
- Define maintenance duties. Clarify who fixes appliances, handles yard work, or pays for repairs.
- Include pet policies. State if pets are allowed, any pet deposits, and rules for pet behavior.
- Add clauses covering subletting, noise, and lease termination. For instance, require landlord approval before subletting.
- Follow your state’s rules on security deposits, including maximum amounts and return timelines.
Pro Tip
Use a customizable lease template from LeaseRunner. This ensures your lease follows local laws and covers key points.
Detailed Example
If you allow pets, clearly state the pet deposit amount and rules. If you don’t, say “no pets allowed.” Specify who pays for lawn care, the tenant or the landlord. This clarity helps avoid confusion and builds trust.
8. Set Up a System for Rent Collection
Consistent rent payments are crucial for steady cash flow when renting out your house. A clear system helps avoid late or missed payments. It also makes managing your rental easier and more professional.
Key Tasks
- Offer tenants multiple payment options. Use online platforms like Zelle, PayPal, or LeaseRunner’s rent-collecting service for easy, secure payments.
- Set clear rent due dates and enforce late fees. For example, charge a 5% late fee if rent is not paid within five days of the due date but verify the amount allowed by your state laws.
- Provide receipts for every payment. This builds trust and keeps records clear for both parties.
- Send automated payment reminders via email or text to reduce late payments.
Pro Tip
Use property management software that supports online rent collection. This software can automate reminders, track payments, and even charge late fees automatically. It also offers tenants a portal to view their payment history and balances.
Detailed Example
If you rent out a house, allow tenants to pay rent online through a secure app. Set rent due on the 1st of each month and charge a 5% late fee after the 5th. Send reminders a few days before rent is due. When tenants pay, send digital receipts instantly. This system reduces missed payments and keeps your finances organized.
9. Set Up a Maintenance Plan and Emergency Response Protocol
Proactive maintenance is vital when renting out your house. It keeps your property in good shape and protects its value. Regular upkeep prevents costly repairs and keeps tenants happy.
Key Tasks
- Schedule seasonal inspections. For example, clean gutters in fall and service HVAC systems before summer and winter. This prevents damage and keeps systems running well.
- Build a list of trusted professionals like plumbers, electricians, and locksmiths. Having reliable contacts means quick repairs when problems arise.
- Share emergency contact information with tenants. Make sure they know who to call for urgent issues like leaks or power outages.
Pro Tip
Use maintenance tracking apps like Hospiria. These tools help you log repair requests, schedule tasks, and communicate with tenants. This keeps everything organized and speeds up response times.
Detailed Example
Before winter, arrange a heating system check. If a tenant reports a broken heater, call your trusted HVAC technician immediately. Keep a spreadsheet or app with all service providers’ contacts. Share a printed or digital emergency guide with tenants, including after-hours numbers.
10. Stay Organized with Your Finances and Tax Obligations
Good financial management is crucial when renting out your house. Poor tracking can cause missed tax deductions, audits, or loss of profits. Staying organized helps you maximize earnings and meet legal tax duties.
Key Tasks
- Track all rental income and expenses. Use software like QuickBooks or Excel to record rent payments, repairs, and bills.
- Set aside 25–30% of your rental income for taxes. This prevents surprises when tax time comes.
- Keep receipts and records for mortgage interest, repairs, maintenance, and depreciation. These expenses lower your taxable income.
Pro Tip
Hire a CPA who specializes in rental properties. They can help you find all eligible deductions and file correctly. A tax expert also advises on changing tax laws and helps plan your finances.
Detailed Example
If you collect $1,500 monthly rent, save about $375 for taxes. Record every repair, like a $200 plumbing fix, with receipts. Deduct the mortgage interest paid yearly. Use accounting software to generate reports for your CPA..
Bonus Tips For Landlords When Renting Out a House for The First Time
Renting out a house for the first time can be overwhelming. These bonus tips help new landlords avoid common pitfalls and run their rental smoothly.
Consider Hiring a Property Manager
A property manager handles tenant issues, repairs, and rent collection. They usually charge 8–12% of the monthly rent. This is ideal if you have multiple properties or a limited time. A manager can screen tenants, schedule maintenance, and enforce lease terms, easing your workload.
What Mistakes Do First-Time Landlords Commonly Make?
Many first-time landlords skip the tenant screening process, which risks late payments and property damage. Others fail to document the property condition before renting, making it hard to resolve disputes. Neglecting lease renewals can also cause legal problems or loss of rent.
Is It Better to Rent Furnished or Unfurnished?
Furnished rentals attract short-term tenants but need more upkeep and higher insurance. Unfurnished homes appeal to long-term renters and reduce wear and tear. Consider your local market and tenant type when deciding.
These tips are essential things to do before renting out your house and help you succeed as a landlord.
What to Do After Your First Tenant Moves In?
After renting out your house, it’s important to manage the tenancy well.
- Conduct a Move-In Walkthrough: Walk through the property with your tenant. Document the condition with photos and notes. This protects you from disputes over damages later.
- Schedule Regular Inspections: Plan quarterly inspections. Always give proper notice, usually 24–48 hours. Check for maintenance needs and ensure tenants follow lease rules.
- Build Good Tenant Relationships: Communicate promptly. Respond quickly to repair requests and questions. Good rapport encourages tenants to stay longer and care for your property.
These steps are vital things to do before renting out your house and help you succeed in completing things to do as a landlord.
Conclusion
Renting out a house for the first time can be challenging, but following the 10 essential steps helps reduce risks and boost your returns. Start by ensuring safety with thorough inspections and fixing hazards. Know your legal duties by learning federal, state, and local landlord laws to avoid fines or lawsuits.
Use smart market research to set a fair rent that attracts tenants quickly. Screen tenants carefully to reduce late payments or damage. Maintain clear lease agreements and set up reliable rent collection systems. Keep your property well-maintained and stay organized with finances and taxes.
Building good tenant relationships through clear communication also helps. For more guidance, explore detailed resources on things to do before renting out your house, tips for becoming a landlord, and how to lease out a house effectively. These steps form the foundation for a successful rental business.
FAQs
Q1. Should I Allow Pets in My Rental Property?
Allowing pets can attract more tenants and reduce vacancy times. Many renters look specifically for pet-friendly rentals, which can help you fill your property faster. To protect your investment, charge a non-refundable pet fee between $200 and $500. Require tenants to have renters' insurance that covers pet-related damages.
Q2. How Much Should I Budget for Vacancies and Repairs?
Plan to save 3 to 6 months’ rent to cover vacancy periods. Set aside about 1% of your property’s value each year for repairs and maintenance. For example, if your home is worth $200,000, budget $2,000 annually for upkeep. This helps cover unexpected fixes and keeps your rental in good condition.
