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Renting out your house can be a great way to make extra money, build long-term wealth, or keep a home you’re not ready to sell. But becoming a landlord takes planning and responsibility. If you’re new to renting out a home, this guide will walk you through the process so you can do it the right way.
How to Rent Out Your House: A Step-by-Step Guide
Step 1: Know What It Means to Be a Landlord
Before you rent out your home, it’s important to understand what a landlord does. Renting out a house is more than just collecting rent each month—it requires time, effort, and responsibility. As a landlord, you will need to:
Take care of the property – Fix things when they break and keep the home in good condition.
Communicate with tenants – Answer questions, handle concerns, and make sure rent is paid on time.
Follow the law – Learn about rental rules in your area so you don’t run into legal trouble.
Manage money wisely – Set a fair rent price, track expenses, and plan for repairs.
If this sounds like too much work, you can hire a property management company to handle these tasks for you.
Step 2: Get Your Home Ready for Renters
Before you list your house for rent, make sure it’s in great shape. A well-maintained home attracts better tenants and lets you charge a higher rent.
Make Necessary Repairs
Walk through your house and fix anything that’s broken or worn out, such as:
Leaky faucets or plumbing issues
Outdated appliances that don’t work well
Holes in the walls or peeling paint
Worn-out carpets or damaged floors
Heating and cooling system issues
Clean and Improve the Home
A clean and well-kept home looks more appealing to renters. Be sure to:
Deep clean the carpets and floors
Wash windows and remove stains
Get rid of any odors
Improve the yard and front entrance for better curb appeal
Tip: Small upgrades, like a fresh coat of paint or new cabinet handles, can make your home look modern and well-kept without spending a lot of money.
Step 3: Learn the Rental Laws in Your Area
Each city and state has different rules for landlords and tenants. It’s important to understand these laws to avoid legal issues. Some things to check include:
Security deposits – How much can you charge, and when must you return it?
Fair housing laws – You can’t refuse to rent to someone based on race, religion, gender, disability, or family status.
Lease agreements – What terms must be included in the contract?
Eviction rules – What steps must you follow if a tenant stops paying rent or breaks the lease?
You can check government websites or talk to a real estate lawyer to learn about the laws in your area.
Step 4: Set the Right Rent Price
Choosing the right rent price is important. If you charge too much, you might struggle to find tenants. If you charge too little, you could lose money.
Here’s how to find the right price:
Check rental prices in your area – Look at similar homes on Zillow, Craigslist, or local rental sites.
Think about your home’s features – A house with a garage, modern appliances, or a big backyard may be worth more.
Use a rental calculator – Websites like Zillow and Rentometer can help you find a fair price.
Tip: A well-priced home will attract more renters and get filled faster.
Step 5: Create a Strong Lease Agreement
A lease agreement is a contract that sets the rules for your rental. It protects both you and your tenant. A good lease should include:
The rent amount and due date
Lease length (month-to-month or one-year lease)
Security deposit amount and refund terms
Rules for repairs and maintenance
Pet policies (if pets are allowed)
What happens if a tenant doesn’t pay rent
You can find lease templates online, but it’s a good idea to have a lawyer check it to make sure everything is legal.
Step 6: Advertise Your Rental Property
Now that your home is ready, you need to find a tenant. The best way to do this is to market your property effectively.
List Your Home Online
Post your rental on popular websites like:
Facebook Marketplace
Take Good Photos
Listings with clear, high-quality photos get more attention. Be sure to take bright, well-lit pictures of each room, including the kitchen, bathrooms, and outdoor areas.
Write a Great Description
Your listing should include:
The number of bedrooms and bathrooms
Any special features (e.g., hardwood floors, new appliances, fenced backyard)
The location and nearby attractions (e.g., schools, parks, public transport)
The monthly rent amount and lease terms
Step 7: Choose the Right Tenant
Finding the right tenant is one of the most important parts of renting out your house. A good tenant will pay rent on time, take care of the home, and follow the lease rules.
Screening Tenants
Before choosing a tenant, check their:
Credit score – A good credit score (usually 650 or higher) means they are more likely to pay rent on time.
Income – Tenants should earn at least three times the monthly rent to afford payments.
Rental history – Call past landlords to ask if they paid rent on time and took care of the property.
Background check – Make sure they have no history of serious crimes.
Tip: There are online services like SmartMove that can help with tenant screening.
Step 8: Sign the Lease and Collect Rent
Once you’ve found the right tenant, it’s time to sign the lease and collect payments.
Go over the lease in person so the tenant understands the rules.
Collect the security deposit and first month’s rent before giving them the keys.
Use an online rent collection system (like Porchlio, Zillow, or Buildium) to make payments easier.
Setting clear expectations from the start reduces confusion and potential problems.
Step 9: Maintain the Property and Be a Good Landlord
Your job isn’t over once a tenant moves in! Keeping your property in good shape and maintaining a positive landlord-tenant relationship is key to long-term success.
Stay on Top of Maintenance
Respond quickly to repair requests.
Do regular inspections to check for hidden issues.
Have a list of trusted contractors for plumbing, electrical, and other repairs.
Keep Good Communication
Be friendly and professional with tenants.
Use a tenant portal (like Porchlio) for easy communication.
Offer lease renewal incentives to keep good tenants longer.
Happy tenants are more likely to stay longer, pay rent on time, and take care of the home.
Final Thoughts
Renting out your house can be a great way to earn extra money, but it requires planning and effort. By preparing your home, setting a fair price, screening tenants carefully, and staying on top of maintenance, you can make renting out your home a smooth and profitable experience.
If managing a rental property seems too overwhelming, using a property management tool like Porchlio can help make everything easier and stress-free.
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