Renting out a home you own — whether you are moving, inheriting or deliberately building a rental portfolio — is a business with a handful of rules that most first-time landlords learn the expensive way. This guide covers them in order: deciding whether the numbers work, getting the property and your paperwork ready, pricing and listing, screening tenants fairly and legally, writing a lease that protects you, handling deposits and rent, and running the property month to month. MLS9 handles the listing, applications, screening, lease and rent collection, so you can run one door or ten without a property manager's fee.
Decide if the numbers work
A rental has to pay for itself. Start with realistic market rent, then subtract vacancy (budget 5–8%), maintenance (5–10% of rent), a capital reserve for big items like the roof and HVAC (another 5%), property taxes, insurance (a landlord policy costs more than a homeowner policy), HOA dues and your mortgage. What is left is your cash flow.
Slightly negative cash flow is not automatically a deal-breaker if the property is appreciating and you are paying down the loan, but you need to be able to carry it comfortably. Positive cash flow of $150–$300 per month on a single-family home is a healthy target in most markets.
Also compare the rental to simply selling. If your equity would earn more elsewhere, or you would rather not be a landlord, selling for 0% commission on MLS9 may be the better use of the asset. Run both numbers before deciding.
Checklist
- Estimate market rent from 3–5 comparable rentals
- Budget vacancy, maintenance, reserves, taxes, insurance and HOA
- Run the Rental Cash Flow calculator
- Compare against selling and investing the equity
Get the legal and financial setup right
Call your mortgage servicer. Most owner-occupied loans allow you to convert to a rental after you have lived in the home for a year; some require notice. Then call your insurance agent and switch to a landlord (dwelling fire) policy — a homeowner policy will deny claims on a tenant-occupied property.
Check local rules: some cities require a rental license or inspection, many have limits on security deposits and specific notice periods, and HOAs sometimes restrict or cap rentals. Ten minutes on your city's website now saves fines later.
Open a separate bank account for the rental so income and expenses are clean at tax time. Many landlords also form an LLC for liability protection; talk to an attorney or CPA about whether that makes sense for you and how it interacts with your mortgage.
Checklist
- Confirm your mortgage allows renting; give any required notice
- Switch to a landlord insurance policy; require renters insurance from tenants
- Check city rental licensing, deposit limits and HOA rules
- Open a dedicated bank account for the property
Make the property rent-ready
Tenants pay more for clean, functional and safe. Walk the property as a renter would: every light works, every outlet has a cover, faucets do not drip, doors lock, smoke and carbon monoxide detectors are new and in every required location, the water heater is strapped where codes require, and the HVAC has a fresh filter and a recent service.
Neutral paint, clean or new flooring and a professionally cleaned kitchen and bathrooms are where you spend. Avoid over-improving — granite and high-end appliances rarely raise rent enough to pay back in a typical rental. Durable and clean beats luxurious.
Photograph everything in detail once it is ready. These photos are your listing and your move-in condition record. Date-stamped photos of every wall, floor, appliance and fixture are what settle deposit disputes.
Checklist
- Complete all safety items: detectors, locks, railings, GFCI outlets
- Service HVAC, test appliances, fix all leaks
- Fresh neutral paint and professional cleaning
- Photograph every room for the listing and the move-in record
Price the rent
Search current rental listings within a mile for homes with the same bedroom count and similar size and condition. Note what has been listed for more than three weeks — that is the overpriced tier. Your target is the price where a well-presented home rents in 7–14 days.
Vacancy is the most expensive mistake. Every month empty costs you a full month of rent; pricing $100 higher and sitting an extra month costs you $1,200 to gain $1,200 over the year. Price to fill, then raise modestly at renewal.
Decide your policies before you list: pets (a pet deposit or monthly pet rent expands your applicant pool significantly), smoking, who pays which utilities, lawn care, minimum lease term. Writing them into the listing filters applicants and saves everyone time.
Checklist
- Compare 5–8 active and recently rented comps within a mile
- Price to rent within 14 days
- Set pet, smoking, utility and lawn-care policies
- Choose a lease term (12 months is standard)
List it and handle inquiries
Create the rental listing on MLS9 with your photos, rent, deposit, policies and available date. Lead with the strongest photo and a description that covers what renters ask first: bedrooms and baths, parking, laundry, pets, utilities included and move-in date.
Pre-screen in the listing by stating your criteria plainly — for example, income of three times the rent, no evictions in the last seven years, positive landlord references. Renters who do not qualify will self-select out, and stating the same criteria for everyone is your first fair-housing safeguard.
Respond to every inquiry the same day with the same information. Schedule showings in blocks — several prospective tenants in one afternoon — so you are not driving over daily. Bring an application link and be ready to answer questions about the neighborhood and the lease.
Checklist
- Publish the listing with photos, rent, deposit, policies and date
- State your qualification criteria in the listing
- Answer inquiries within hours, consistently
- Group showings into blocks
Screen tenants fairly and thoroughly
Every applicant fills out the same application and pays the same application fee. You run credit, criminal and eviction checks, verify income with pay stubs or bank statements, and call the current and previous landlords. Ask previous landlords the important question: would you rent to them again?
Apply your written criteria identically to everyone. Fair housing law prohibits decisions based on race, color, religion, national origin, sex, disability or familial status, and many states add source of income, age and more. Decide using income, credit, rental history and references, document your reasons, and take applicants in the order received.
MLS9 collects applications, runs screening and verifies income for you, so every applicant is evaluated the same way and you have a clean record of the process. Notify applicants you decline in writing; if a credit report was part of the reason, an adverse-action notice is required.
Checklist
- Use one application and one process for every applicant
- Run credit, criminal and eviction screening; verify income at 3x rent
- Call current and previous landlords
- Document decisions; send adverse-action notices where required
Write a lease that protects both sides
Use a state-specific lease — landlord-tenant law varies widely, and a generic template can leave required disclosures out. Your lease should cover rent amount and due date, late fee (within your state's limits), deposit amount and how it is held, who pays utilities, maintenance responsibilities, entry notice, pet terms, occupancy limits, subletting rules and what happens at the end of the term.
Attach the required disclosures: lead-based paint for homes built before 1978, plus any state-specific forms (mold, bed bugs, flood zone, and so on). Include a move-in condition checklist that you and the tenant sign together with the photos from Step 3.
Walk through the lease with the tenant before signing. Tenants who understand the rules break fewer of them. Sign electronically so everyone has a copy, and collect the deposit and first month's rent by verified funds before handing over keys.
Checklist
- Use a state-specific lease with all required disclosures
- Attach a signed move-in condition checklist with photos
- Collect deposit and first month by verified funds before keys
- Give the tenant a signed copy
Handle deposits and rent collection correctly
Security deposits are regulated in almost every state: how much you can collect, whether it must be in a separate or interest-bearing account, and how quickly you must return it with an itemized statement after move-out (often 14–30 days). Missing that deadline can cost you two or three times the deposit in penalties.
Collect rent electronically. Automatic payments on the first mean fewer late payments and no cash to track. Apply late fees exactly as the lease states, every time; inconsistent enforcement is how small problems become large ones.
MLS9 collects rent, posts charges and late fees automatically, and matches bank deposits to your ledger, so you always know who has paid and your tax records are already done.
Checklist
- Hold the deposit as your state requires
- Set up automatic electronic rent collection
- Enforce late fees consistently per the lease
- Keep a running ledger of every charge and payment
Manage the property month to month
Respond to repair requests fast. A leaking pipe on Tuesday is a $200 plumber call; the same leak discovered Saturday is a $5,000 floor. Build a short list of a plumber, an electrician, an HVAC tech and a handyman before you need them, and give tenants a clear way to report problems.
Inspect the property twice a year with proper notice. Check under sinks, around water heaters, at the roof line, the HVAC filter and the smoke detectors. This is maintenance, not snooping — tenants generally appreciate a landlord who keeps the house in good shape.
Track every expense: repairs, insurance, taxes, mileage, supplies. Nearly all of it is deductible, along with depreciation on the structure. Good records turn a decent rental into a good one at tax time.
Checklist
- Line up a plumber, electrician, HVAC tech and handyman
- Respond to maintenance requests within 24 hours
- Inspect twice a year with proper notice
- Log every expense for taxes
Renewals, rent increases and move-outs
Ninety days before the lease ends, decide whether you want the tenant to stay. Good tenants who pay on time and take care of the place are worth keeping even at slightly below-market rent — turnover costs you a month of vacancy, cleaning, paint and time. Offer a renewal with a modest increase, typically 3–5%.
If the tenant is leaving, give the move-out instructions in writing: cleaning expectations, key return, forwarding address, and the date of your final inspection. Walk the property with the move-in photos and checklist in hand.
Return the deposit within your state's deadline with an itemized list of any deductions and receipts. Normal wear and tear — small nail holes, light carpet wear, faded paint — is not deductible. Damage beyond that is. Then repeat from Step 3 for your next tenant.
Checklist
- Send renewal offers 90 days before lease end
- Provide written move-out instructions
- Inspect against the move-in checklist and photos
- Return the deposit with itemization within the legal deadline
Common questions
How much rent should I charge?
Whatever comparable homes within a mile actually rent for, priced to fill within two weeks. Vacancy costs far more than a slightly lower rent. MLS9 shows estimated rent for your address and comparable rentals nearby.
Do I need a property manager?
Not necessarily. Managers charge 8–10% of rent plus a leasing fee. MLS9 handles listing, applications, screening, leases and rent collection, which is most of what a manager does. You handle maintenance calls or hire out individual jobs.
How big a security deposit can I collect?
It depends on your state; many cap it at one or two months' rent. Check your state's landlord-tenant statute, and hold the deposit as required.
Can I refuse pets?
You can decline pets generally, but you must allow assistance animals for tenants with disabilities. Allowing pets with a deposit or pet rent expands your applicant pool and often raises total income.
What insurance do I need?
A landlord (dwelling fire) policy on the property and, ideally, an umbrella liability policy. Require tenants to carry renters insurance; it protects their belongings and reduces claims against you.