Renting out your house can be a way to build wealth and generate monthly income—and with a well thought-out plan, your first time as a landlord can be a smooth experience.
From getting the property rental-ready and setting the right price to following key rules and choosing tenants carefully, a few early decisions can set you up for success. Before you list your home for rent, here’s what you need to know.
In this article:
- The Benefits of Renting Out Your House
- What First-Time Renters Should Decide First
- Research Landlord and Tenant Laws
- Preparing Your House for Renters
- Advertise Your Property
- Rental Money Basics
- Leasing Checklist
- Stay Organized and Document Everything
- Retain Your Renters
Possible Benefits of Renting Out Your House
Renting out a property can be a profitable way to build long-term stability, with benefits that can support your overall financial goals. One of the primary advantages is the generation of additional monthly income. Ideally, your rental income helps offset costs like the mortgage, taxes, and insurance—and if your expenses are well managed, it may also generate additional cash to increase your rental property portfolio.
Beyond the appeal of passive income, becoming a landlord allows for the building of equity in your property. Over time, as you pay down the mortgage with the rent received, your equity—the portion of the property you truly own—increases. This is a dual-benefit situation where, aside from the rental income, you're also accumulating wealth as your property’s value appreciates over time.
Additionally, there are potential tax advantages to renting out your home. You might be able to deduct expenses related to the operation, maintenance, and improvement of your property, along with any interest paid on the mortgage. Be sure to consult with a tax professional to understand your specific tax situation and take advantage of any available deductions for your rental property.
What First-Time Landlords Should Decide First
So, you're ready for your first tenants. Before you move anyone in, you should first determine whether you want to manage the property yourself or hire a professional property manager.
DIY management allows you to save money and control every aspect of the property, including collecting rent, handling maintenance, and screening applicants. However, if you live far away from the property, have a very busy schedule, or are just unfamiliar with managing a business, hiring a property manager is a good option.
According to a 2026 Apartments.com survey of independent property owners, 84 percent self-manage their rental(s).
It’s common for property managers to charge up to 10 percent of the monthly rent along with other fees, such as 50 percent of the first month’s rent, when a new tenant moves in. Although hiring a property manager is another expense, they can help make your rental property profitable and ease your stress.
Common tasks for property managers include:
- Navigating landlord-tenant laws appropriately
- Collecting rent and fees
- Advertising the property
- Screening and selecting tenants
- Signing leases
- Tracking finances
- Scheduling maintenance repairs
- Enforcing policies
- Filing evictions
Due to the high level of responsibility, it’s important to find a property manager that will be the best fit. Do your research and ask the potential property manager plenty of questions to determine if you should hire them.
Research Landlord and Tenant Law
Before you list your house for rent, start by researching local, federal, and state law for both landlords and tenants.
State and local law
Each state has varying laws for security deposits, notice letters, property access, and other issues, but there are some general rules to be aware of. For example, some states have rent control, which means there is a cap on how much rent you can charge. Similarly, many states have limits for security deposits and require landlords to keep deposits in a separate bank account since the money can only be used to complete repairs.
Many states also recognize an implied covenant of quiet enjoyment, so landlords must provide a notice of entry 24 hours before entering a home for maintenance or renovations. Along with doing your own research online, you can contact your local housing authority or real estate attorney to help you learn about state and local laws.
Federal law
You can view all landlord-tenant laws on the Department of Housing and Urban Development website. HUD also provides information about the Fair Housing Act, which prohibits housing discrimination due to a person’s race, color, national origin, religion, sex, familial status, and/or disability.
When a landlord denies a rental application, they are required to provide the applicant with a letter detailing why. It’s vital that you understand fair housing law before renting out your house. Similar to researching state law, it’s recommended to consult with a real estate attorney.
Preparing Your House for Renters
Before you advertise your rental property, it's crucial to ensure your property is in top-notch condition. Starting with essential repairs, identify and address any issues that could pose a safety hazard or inconvenience to the occupants. This includes checking for leaks, ensuring all appliances are in working order, and making sure the heating, ventilation, and air conditioning (HVAC) systems are functioning efficiently.
Maintenance needs shouldn't be overlooked. Regular maintenance not only preserves the property's value but also enhances tenant satisfaction. Tasks such as servicing the HVAC system, cleaning gutters, and ensuring the plumbing system works properly are vital.
To further attract potential tenants, assess your property’s curb appeal. Simple cosmetic improvements like a fresh coat of paint, updated fixtures, and a well-maintained landscape can make a world of difference. These enhancements not only make the property more appealing but also can allow for a higher rental price.
Lastly, make sure your property complies with all safety regulations and codes for residential rentals. This includes installing smoke detectors and carbon monoxide detectors and ensuring all exits are accessible and properly marked in case of an emergency. Compliance with these regulations not only protects your tenants but also helps you avoid potential legal issues.
Taking the time to thoroughly prepare your property for renters can lead to a more profitable and stress-free rental experience for both you and your potential tenants.
Where to Advertise a House for Rent
There are several ways to advertise your home, including sharing in local community groups, using a yard sign, letting your personal network know, and posting the rental online. A great place to start is with Apartments.com Rental Tools. With our user-friendly features, you can advertise one house or multiple all under the same account, making it easy to find the perfect renter.
Rental Money Basics: Rent, Deposits, and Fees
Before you list your house, take a few minutes to map out the financial details. In addition to setting the rent, you’ll want to plan for upfront costs like security deposits and application fees, plus ongoing expenses such as repairs, insurance, and occasional vacancies. Setting these components in advance helps to avoid surprises later.
Application Fee
An application fee is a common part of the rental process, and many renters expect to pay one when they apply. The fee typically helps cover the cost of processing the application and running tenant screening, such as credit and background checks. For landlords, using a third-party screening provider can simplify the workflow because you don’t have to handle sensitive personal data directly or gather separate reports yourself.
With Apartments.com, renters pay $29.99 + tax for up to 10 rental applications, and that price includes tenant screening through TransUnion—at no cost to the landlord. As a landlord, you can review screening results such as a credit report, an eviction report, and income-related information to help you evaluate applicants.
Deposit
A security deposit is an important fee that landlords collect before a tenant moves in. It protects you in case the tenant breaks the lease. It also helps cover damages if the tenant moves out. A standard amount for a security deposit is one to two months’ rent. Always check your local and state laws to make sure you are charging the right amount.
Monthly Rent Price
The most essential part of placing your house for rent for the first time is setting the rent. When setting your price, you want to strike a balance between a rate that is higher than your expenses, but low enough to attract tenants. Several factors such as the value of your house, location, and size will impact your final rate, but rent price is generally determined by the market.
Your rental will most likely have the same rent price as other houses in your area that are of similar size and condition. Conduct thorough research by examining nearby properties. Valuable information is readily available in a rent comps report.
If you use Apartments.com Rental Tools, you’ll have free access to a rent comparable report which informs you of the rent prices in your zip codes that have similar bedroom and bathroom counts to your property.
Ongoing Expenses
Finally, it’s important to budget for the ongoing costs that come with owning and operating a rental. A few common expenses for renting out a house include:
- Landlord insurance
- Mortgage payments
- Routine maintenance
- Repairs and/or renovations
- Inspections
- Pest control
- Insurance
- Attorney fees
- Accountant fees
- Property management fees
Contact local property management companies to get a realistic sense of common landlord expenses in your area. It’s also worth checking with local utility providers to understand typical monthly costs.
Information obtained from utility providers can help you decide whether to include utilities in the rent, build in a separate monthly charge, or have the tenant set up and pay for utilities directly. And if you keep any utilities in your name, knowing the normal range can help you spot unusual spikes that may signal issues—like an HVAC system that needs service.
Reaching out to a real estate lawyer and an accountant is highly recommended since they can ensure you follow local property law, tax law, zoning ordinances, and more. A real estate accountant will help you draft a realistic budget and understand which tax deductions for which you might qualify.
Leasing Checklist: Applications, Lease, and Move-In
Evaluate tenant applications
Reviewing tenant applications for the first time can feel like a lot of information all at once. Expect to compare more than just income. The key is to decide your criteria before you start, review every applicant the same way, and keep good records so your process stays fair, consistent, and easier to manage.
If you’re using Apartments.com Rental Tools, you can collect applications and screening reports entirely online. Your listing will feature an “Apply Now” button, where renters can click and directly apply on their computer or mobile device. You can also personally invite renters to apply to your listing on Apartments.com.
Create a lease
A lease agreement is the document that sets expectations for both you and your tenant—so it should be clear, thorough, and compliant with legal requirements. In addition to basics like rent amount, due date, and lease term, include policies on repairs and maintenance requests, late fees (if allowed), pets, occupancy limits, and rules for entry and notice.
Use a state-specific lease template or have an attorney review it, and make sure any addenda and required disclosures are included before anyone signs. With Apartments.com Rental Tools you can create a lease that's legally-compliant and customizable, free of charge.
Collect the security deposit
The security deposit helps protect you if a tenant causes damage beyond normal wear and tear or breaks the lease—but how you collect and handle it is often regulated.
Before move-in, confirm your state and local rules on deposit limits, required receipts, where the money must be held, and when you must return it. Document the home’s condition with a move-in checklist and photos, and be clear in the lease about what the deposit can (and can’t) be used for and how deductions will be itemized at move-out.
Review the rent payment process
Besides dealing with maintenance issues, collecting rent is often cited as one of the biggest pain points for a landlord. To help keep things simple, set clear expectations in the lease about when rent is due, what payment methods you accept, and when late fees apply (where allowed).
Sometimes tenants can be late on rent, therefore some landlords will provide tenants with a grace period. Be sure to spell out any grace periods within the lease to avoid possible misunderstandings.
Prepare for move-in
After your tenant has signed the lease and has paid their security deposit and first month’s rent, congrats! Now it’s time to prepare for move-in. Here are some things you may want to consider doing before your tenant moves in:
- Create keys: if you’re renting a house for the first time it’s essential to create keys for each of your tenants.
- Maintain yard: make sure you cut the grass before move-in day and either hire a regular landscaper, cut the grass yourself, or ask your tenant if they can cut the grass
- Deep clean: It is essential you deep clean the house before anyone moves in. You can do this yourself or hire a cleaning company.
After you have completed everything on your to-do list, make sure you schedule a move-in date with your tenant and you’re ready for your new role as a landlord.
Stay Organized and Document Everything
Being unorganized will not only cause a headache, but it could also lead to several consequences including loss of income and litigation. If you’re managing the property yourself, remember these three words: document, document, document! Every task you complete should be documented in a physical file and/or digitally.
You should keep photos and videos showing the state of the property before and after tenants move in and out. Also be sure to keep track of any tax-related documents as well as any copies of additional legal notices.
Although DIY management is cost-effective, don’t be afraid to reach out to professionals for advice and help.
Retain Your Tenants
Retaining tenants is the easiest way to ensure your rental property remains profitable. If your current tenants renew their lease, you won’t have to worry about finding new tenants to fill the vacancy. The longer your house sits vacant, the more money you will lose. Providing a welcome basket, handling maintenance issues quickly, and allowing pets are just a few ideas to increase resident retention.
Putting It All Together for Success
Renting out your house is can provide an additional source of income. When you manage your rental using Apartments.com Rental Tools, you'll have one convenient portal to manage all aspects of landlording—from applications and tenant screening to leases, rent collection, and maintenance tracking, and more. Get started today!
FAQs
How do I rent out my house for the first time?
Start by confirming you’re allowed to rent (mortgage/HOA rules), then budget for ongoing costs (repairs, vacancies, insurance, taxes). Next, get the home rental-ready, research nearby rentals of similar size to set a competitive price, and create a clear listing.
Use a consistent application and screening process, choose a qualified tenant, sign a lease that follows local laws, collect the security deposit, and document the home’s condition at move-in.
How much should I charge to rent out my house?
A good starting point is to see what similar homes nearby are renting for (same bed/bath count, size, condition, and amenities). Adjust for differences like parking, yard, renovations, and whether utilities are included.
Make sure the rent aligns with your budget—covering your mortgage and typical expenses plus a cushion for maintenance and vacancy—while still staying competitive for your property's location. You can also consult a real estate professional for assistance.
Published on March 27, 2025 and has been updated.
