How to Rent Your Home in 2023: The Ultimate Guide for New Landlords

How to Rent Your Home in 2023: The Ultimate Guide for New Landlords

You may want to rent your property for many different reasons. You may, for example, have inherited a home that you don’t plan to live in. You may be moving to a bigger home but want to rent out your old house as a passive source of income. You may also have invested in an excellent rental property, but are unsure of how to find and maintain great tenants.

It’s important to know how to rent a house before you jump in. You’ll need to prepare your house for renters and familiarize yourself with the rental laws before you become a landlord.

This guide will help you maximize your rental income and minimize the amount of work required.

Renting Your House Is a Smart Financial Investement

Renting your property has many benefits. If you are reading this article, then you probably know what they are. Renting your property will provide you with a regular stream of passive income, and over time help build equity in the property. Renting allows you to keep ownership of your property and benefit from its appreciation.

Learn how to rent your house with the help of others.

Renting a house is a long-term commitment that requires countless hours of learning and patience. This guide will help you to avoid costly mistakes by letting you know exactly what each step involves.

We recommend working with a property management company to help you rent your property and avoid costly mistakes. Here are some ways that they can assist:

How property managers can help first-time landlords

  • You are always aware and in compliance with all applicable laws
  • You can set the price of your property and sell it.
  • The screening process is used to identify the best tenants.
  • The company drafts and manages leasing documents
  • You can rely on them to manage all maintenance and repairs for your property.
  • The communication between tenants and vendors is handled by the property manager
  • Discover new passive income opportunities

In a future section, we’ll explain how property management firms work. Let’s get started with the steps for renting your home.

How to rent your house successfully: 7 essential steps

1. Local laws are important to research

Before renting your home, there are some things you should do. First, make sure your house is safe and up to code. State and local governments both have building codes that are mandatory to landlords. These codes set minimum standards of safety for housing conditions. These codes can cover electrical safety, maintenance, sanitation and fire safety, depending on where your property is located. Do your research on local and state laws and update them as necessary.

The easiest way to ensure that your home is compliant is to have it inspected by your local building department. Some departments provide a free service while others charge a fee. Many cities offer online scheduling of inspections. You can avoid thousands of dollars in fines by ensuring that your rental property is up to code and ready for rent. Have a professional inspect the property and give their stamp of approval.

2. Calculate a price that is competitive

You must do market research to determine how to rent your home and then choose the price to charge. Assess the different neighborhoods around you. Then, compare your neighborhood to others. Is your home near a good primary school, for example? Are there parks and supermarkets nearby? Is it closer to these amenities or further away? When setting your rental price, you should consider these factors.

If you’re still wondering “How much rent can I charge for my home?” then check out rental websites to see how other owners list their properties.

Most landlords charge their tenants a percentage based on the home’s value. Rents are usually between 0.8% to 1.1% of a home’s total value. If a house is worth $180,000 then the monthly rent will be between $1440 and $1800. You can charge higher rent if your home is in an excellent location or you have recently made improvements to the landscaping.

However, sometimes property values can rise faster than the rent price. You can determine a fair rent price by comparing the rents of your property to those of other properties in your neighborhood. Here is our rental calculator.

3. Plan your advertising campaign

The days of putting a sign on your lawn to rent your home are long gone. You’ll probably have to advertise your rental property on rental websites in order to attract tenants. You may also find paid listings. are all excellent options.

List your property on different websites to get the best possible mix of applicants. Marketing and advertising are challenging for new landlords. Continue reading to learn more about rental advertising and marketing.

4. Meet and screen prospective tenants

You’ll be inundated with applications after successful marketing and advertising. Maybe even some personal showings. The Federal Fair Housing Act and common courtesy dictate that all applicants must be treated equally. Some applicants will be more qualified than others.

  • Financial Information. You want to find a tenant with a high credit score and who is financially responsible.

    You should first run a credit report on your applicants to ensure that they have a good credit score. You can also find their debt-to-income ratio in their credit report. Even if their income is high and they have good credit, you might not be able to count on them to pay the rent on time if their monthly debt payments exceed their income.

    You’ll need to collect evidence of their income. You can ask for copies of pay stubs.
  • Criminal Background. You should check criminal history after checking your credit and income. Some states forbid landlords to discriminate against tenants with criminal convictions. Look up the local laws that govern landlords and renters.
  • Understand Your Rights and Theirs. After you have chosen your ideal resident, you may begin to develop your lease. You should first familiarize yourself local, state and national laws governing landlords and tenants.

    Both renters and landlords are protected by Landlord Tenant Laws. These laws define how landlords and renters interact, the rights and obligations of both parties. Every landlord, for example, has the right charge a deposit.

    How landlords manage that money is governed by state and local laws. Before you draft your lease, it is important to know your state’s rental laws and the federal rental laws.

5. Investigate insurance.

You should require or at least encourage all tenants to be insured as a precaution. This information should be included in your lease. Renters Insurance protects your residents’ personal property from theft or damage. Renters insurance also includes liability coverage, which means that if your tenants have guests over and they are injured, they will be covered if they are sued.

Your tenant’s insurance pays for temporary relocation in the event that your home is rendered uninhabitable by a natural catastrophe or other catastrophes. You can concentrate on fixing your home while your tenant has a place to stay and doesn’t need to terminate their lease. This will save you from the hassle of finding a tenant and money while your house is being repaired.

6. Create a lease agreement

Your tenants will be informed of the rules and expectations in a lease or rental agreement. To avoid future misunderstandings and conflicts, make your lease as detailed as possible. You can choose a lease that has a specific end date or one that is month-to-month. Both automatically renew until the landlord or tenant decides to terminate the agreement.

There are many online resources to assist you in drafting a lease. You can also hire an attorney to guide you through the process. Every lease should contain certain basic information.

  • Name and contact details of the landlord
  • Address of the house
  • Names and contact details of all tenants
  • List of appliances included in the house
  • The landlord is responsible for all utilities and services.
  • The tenant must pay for all utilities and services
  • Early termination of a lease by the landlord or tenant
  • Rent, payment date and method
  • Tenant parking information
  • Permissions within a lease agreement

The lease should include any additional services and special permissions. You must, for example, describe if you intend to allow tenants to have pets on your property. You must include information on pet rent and deposits if you plan to accept pets.

7. Implement a strategy for management and maintenance

The landlord’s job is not over once the lease has been signed and tenants have moved in. It’s now time to maintain and manage your real estate investment. Landlords must expect to perform regular inspections, upgrades, and repairs to maintain the property’s value and condition.

It is important to establish a system that allows you to handle tenant requests, and address any issues promptly. Hire a property manager if you are unable to manage the maintenance yourself.

Some other tips for first-time landlords

Maximize rental income and investment with less work

It may seem overwhelming to manage everything you have learned so far. Although it is possible to manage a rental property, including the leasing, maintenance, and management, on your own, many landlords choose to partner with a professional local property manager.

A property manager has the experience and expertise to quickly turn your home into a profitable rental. They are familiar with the local market and know how to attract quality tenants.

A property manager will also be able to handle your responsibilities in any way you choose. This means that you decide how active or passive you want to become as a landlord.

You want to vet and find tenants, but you don’t have time to maintain your property. A property manager will fill in any gaps. You’d rather leave the entire tenant screening and contract creating process to an expert. Property management companies can help.

Hiring a professional property management company can be a great option if you want to turn your rental property into a passive income source. This will make it easier to follow the tips below.

Prepare Your Property for Renting and Showings

There are some things you should do before renting your home. You’ll want to spend some time preparing your house for the new tenants.

This step will not only ensure that your home is in compliance with the law, but also attract potential renters. When your house is updated and refreshed you can also raise the rent to make a profit.

  • Renovations and Upgrades. Renovations and Upgrades.

    Pandemic has changed how people live at home. Many people have permanently switched from working in an office to working from home.

    Installing shelving or a desk corner in a spare room can help you attract renters. Consider installing fiber-optic Internet in your area if you have the option. Fast internet is essential for at-home workers.
  • Landscaping. They say you only get one chance to make a good first impression. You want to make a good impression on prospective tenants when they visit your single family home.

    You can give your house an boost by powerwashing the sidewalks and gates. Consider adding flowers and shrubs to the exterior of the house, as well as removing weeds, stumps, trimming the trees and mowing your lawn.

    A good first impression can encourage prospective tenants to rent your property right away!
  • How to Prepare Your Home for Showings. Think of your home as if you were expecting company. Your house should be cleaned from top to bottom. Clean your house from top to bottom.

    You should then stage your house. You can show your home empty, but you want potential tenants to imagine themselves living there. You can do this by helping them imagine how the house looks, styled and furnished.

    Last but not least, the home should feel warm and inviting. Use the old trick of the realtor to bake cookies just before the show. You can also keep the house well lit and set the thermostat to 70 degrees.

Find the Best Tenants to Rent Your Property

There is a lot of information available on Google about “how to rent a home” for new landlords. This can be overwhelming. There are many digital tools available for real estate today.

If you are looking for a better way to market your rental properties online, we recommend Buildium. This software is recommended by many major software review websites, such as Capterra or G2.

But technology is only one part of the equation when it comes to finding tenants. You can use digital marketing techniques, like:

  • SEO Investment
  • Posting on multiple rental websites
  • Social media marketing
  • Managing your online reputation
  • Offer other incentives such as discounts on referrals or $100 off your first month’s rent

Renter screening is important

Owners and managers of rental properties should use a high-quality screening method or service to screen prospective tenants. If you are not comfortable with your screening method, continue reading to learn the key steps.

  • Screen tenants before submitting rental applications. This will help determine whether an applicant meets basic requirements for tenancy. According to the Fair Housing Act, landlords are not allowed to screen tenants on the basis of ethnicity, gender or disability.
  • Check your credit history and background. It is important to take into account recent foreclosures as well as large credit card debt and late payments when evaluating your credit score. Also, criminal records must be checked.
  • Verify the income and employment for prospective tenants. According to best practice, the monthly rent of a prospective rental tenant should not be more than one-third their gross monthly income.
  • Verify all information on your application, including previous addresses, landlords and evictions.
  • Interview by phone. The landlord will then decide if he wants to proceed based on the information gathered. You can make the interview as formal or as informal as you want to create a clear image of the applicant.

Renting a Property? Here’s How to Manage and Maintain It

The landlord is responsible for a large portion of the maintenance during a rental agreement. The state-by-state requirements for maintenance may vary, so make sure you are up to date on the local laws.

A landlord’s responsibility is to anticipate the needs of tenants in relation to their property. This includes scheduled maintenance and repairs in the event of an emergency.

This checklist will help you to stay on top of maintenance for your property or unit every six months.

  • Replace the batteries on smoke alarms and carbon dioxide detectors.
  • Replace your air filters.
  • Compare the utility bills for the same month in the previous year. This will help you quickly determine if the property is still working well. It’s especially important to do this if utility bills are included in the tenant rent.
  • Building Maintenance. You should not go longer than six months between inspections if you do not visit the property frequently or if you live close by. It’s best to inspect the property once a month, but it may not be convenient for you to do so. Make sure the common areas are cleaned, that the laundry units work, the security system is working, the lawn, garden, and roof are maintained, and there are no leaks or weak points.
  • Check in with Tenants. It doesn’t need to be an official meeting, but you can check up on them by email or in person. You’ll be able to catch the issues that arise on a daily basis.
  • Consider seasonal requirements. You’ll want to be aware of seasonal changes based on the climate in your area. These resources can be useful if you live somewhere that gets a lot snow.
    The Winterizing of Your Rental Property: A Step-byStep Guide
    Landlords’ Frequently Asked Question about Generators to Prevent Winter Outages

You can avoid costly repairs by identifying minor issues through routine maintenance and inspection.

It’s Not a Problem to Learn How to Rent a House

Renting your property is a big decision. It can be both exciting and overwhelming. With these tips, you will be able to start your rental property career in no time.

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