How to Rent Out Your House: 14 Things to Know

Thinking about renting out your house for the first time? Maybe you’re relocating, downsizing, or still deciding between renting vs selling your home. Whatever your reason, learning how to rent a house can feel like a big task—but it doesn’t have to be overwhelming.

From setting the right rent price to creating a solid lease agreement and protecting your property, we’ll walk you through the essential steps in this Redfin article. Whether you’re renting your home in Phoenix or listing your condo for rent  in Dallas, here’s what you need to know before handing over the keys.

1. Start with a financial game plan

Before listing your home for rent, take a good look at your budget. Can you cover your mortgage, property taxes, landlord insurance, and unexpected repairs and still earn a profit? Add up the recurring costs like maintenance, updates, and possible vacancies. Then compare that with local rental rates to make sure it’s worth it. If the numbers don’t work out, renting might not be the best move right now.

“The best advice I can give is to spend some time running the numbers and figure out the potential upside is to you for renting out your home,” says Dave Meyer, head of real estate investing at BiggerPockets, a real estate investing platform offering education, support, and networking. A lot of people assume that just the cash element of it is the only thing to think about, but as a property investor, you do see other significant benefits, like appreciation and loan paydown, as well as significant tax advantages too, so you should try and look at the financial benefits holistically before deciding which is better for you.”

💡 Pro Tip from BiggerPockets: Make sure to account for ongoing costs like repairs, regular maintenance, potential vacancies, and the cost of cleaning or updating the unit between tenants. These costs can be commonly overlooked by first-time landlords.

2. Decide who’s managing the property

As the property owner, you’ll need to determine who will handle ongoing maintenance and emergency repairs—whether that’s you or a professional property manager. If you’re living out of town or simply prefer a hands-off approach, hiring a local property manager ensures your tenants have someone readily available when issues arise. Regardless of who’s in charge, create a clear plan for routine maintenance scheduling, how and when tenants will be notified, and the process for addressing urgent repair requests.

3. Look into rental property insurance

You likely already have home insurance and maybe additional flood or fire insurance, depending on where you live. However, you may also want to consider getting landlord insurance (also called rental property insurance). This insurance typically covers property damage, liability coverage, loss of rental income, and personal property protection. Rental property insurance doesn’t cover your tenant’s belongings, so it’s also a good idea to require tenants to have renters insurance.

4. Set a competitive rent price

One of the biggest questions in learning how to rent a house is: “How much should I charge for rent?” Research comparable properties in your area and factor in your own expenses. Your rental rate will also need to cover your expenses, but be competitive enough to attract tenants. And don’t forget—some cities have rent control laws, so check your local regulations before setting a price.

 “Connecting with other property managers can give you valuable insight into typical rental rates in your area and help you set a competitive price. You can also ask friends or family members who rent what they’re paying and what they expect for that price.” – Dave Meyer of BiggerPockets

5. Learn the local landlord-tenant laws

Before renting out your house, make sure you’re familiar with all applicable local and state rental laws. Landlord-tenant laws dictate everything from how much security deposit you can collect to how much notice you must give before entering the property or raising the rent. Remember that there are renter’s rights that you can’t violate.

You also have to follow the Fair Housing Act, which means you can’t reject a tenant’s application based on race, color, age, sex, religion, national origin, family status, or physical or mental disability. Local and state laws may also protect other groups. If you’re unsure of these laws, you can consult with an attorney or the Department of Housing and Urban Development (HUD).

6. Draft a lease agreement for renting a house

There are plenty of basic lease agreements you can use as a template. However, you’ll also want to consider what additional policies to include. Think about:

• Do you want to allow pets? Will you charge a pet deposit or a monthly fee? 
• Does your community have an HOA? Who will pay the HOA fees? 
• What is your policy on late rent or breaking the lease early?

There are many landlord resources to help you determine what to include. Remember that a lease agreement is a legally binding document that both parties agree to. Make sure both you and the tenant sign it—and always keep a copy on file.

7. Market your house for rent

Marketing your home for rent is just as important as it would be if you were selling your home. Great photos, a catchy listing description, and listing on popular rental platforms are key. Highlight what makes your house special: the fenced yard, updated kitchen, in-unit laundry, or proximity to public transit.

Listing your home for rent online is a great way to reach a large audience of potential renters. This allows them to view your property, see pictures, and schedule a time to view your property. You can often also accept rental applications on the same platform where you list your home for rent.

8. Screen potential tenants and show the property

There are a few ways that you can screen potential tenants before offering a lease agreement. It’s likely that prospective renters will want to tour the property, which gives you the opportunity to meet them in person. You can also screen tenants through the application process.

• Tenants submit an application: This likely includes an application fee, typically anywhere from $30-$150, which may indicate that an applicant is seriously considering your property. 
• Ask for their social security number to conduct a credit check: Requesting a credit check from one of the three major credit bureaus – Equifax, Experian, and TransUnion – allows you to see any gaps in their credit history. 
• Ask for references or past addresses: By speaking with references like an employer or a past property manager, you can find out additional information about a prospective tenant. Did they pay rent on time? Are they consistently employed? 
• See if they’re employed: Checking to see if a renter has consistent employment and is able to make monthly payments can be an indication that they will pay rent on time. 

There are plenty of reasons why you cannot reject a tenant’s application, so make sure that you’re following the fair housing guidelines. Find out what you can include in a rental application denial letter if the tenant isn’t right for your property.

9. Sign a lease agreement

Once you’ve found your ideal tenant, the next step is to offer them a lease agreement that you’ll both sign. As previously mentioned, a lease agreement is a legally binding document that both you and your tenant must abide by. Include:

• Rent amount and due date
• Late fees
• Maintenance responsibilities
• Duration of lease

10. Collect the security deposit

As part of the lease agreement, you’ll want to collect a security deposit. This amount is typically the equivalent of one month’s rent but can be higher or lower depending on the circumstances. A security deposit can be used to cover any property damage, unpaid utilities or rent, taxes, or other breaches of the lease agreement. 

Keep it in a separate account, and be ready to return it—minus any deductions—when your tenant moves out.  If you’re unsure about the security deposit and how much to charge, you can consult with an attorney.

11. Change the locks before tenants move in

This is an easy one to overlook, but it’s crucial. Change the locks and garage codes before a new tenant moves in. You never know who still has a copy of the old keys.

12. Setup a move-in inspection

Before your tenant moves in, do a walkthrough together and document the property’s condition. Use a checklist, take photos, and have both parties sign off. This protects both of you if there are damages and makes security deposit disputes less likely when move-out time comes around.

13. Collect monthly rental payments

The last step is to begin collecting monthly rental payments. You may choose to have your tenant pay the first and last month’s rent in advance, but this is up to you. Whether you’re collecting rent through a check in-person or an online payment system, you’ve officially rented your home.

The last step is to begin collecting monthly rental payments. You may choose to have your tenant pay the first and last month’s rent in advance, but this is up to you. Whether you’re collecting rent through a check in-person or an online payment system, you’ve officially rented your home.

14. Know when and how to evict a tenant

No one wants to evict a tenant, but sometimes, it’s the only option. If you’re learning how to rent a house, it’s important to know the situations that might lead to eviction. Here are some of the most common reasons:

• The tenant is involved in illegal activity on your property
• They’re a safety risk to you, neighbors, or other tenants
• They’re breaking the terms of the lease
• They consistently pay rent late—or stop paying altogether
• They’ve caused serious damage to the home

Before moving forward, double-check the lease to confirm there’s been a violation. Most lease agreements outline the eviction process step by step. Also, make sure you’re up to speed on your state’s landlord-tenant laws. It’s smart to talk to a local attorney, so you stay on the right side of the law and avoid costly mistakes.

Mastering how to rent a house takes planning, but it pays off

Learning how to rent a house involves more than just handing over the keys—it means preparing financially, following legal requirements, and finding the right tenant. By taking the time to create a solid plan, draft a strong lease, and protect your property, you’ll set yourself up for long-term success as a first-time landlord. Whether you’re renting out your house temporarily or investing long term, these steps will help you do it confidently and legally.

FAQs about how to rent a house

What is the first step in renting out a house?

The first step is creating a financial plan to ensure renting is profitable. Account for mortgage payments, property taxes, insurance, maintenance, and potential vacancies.

Do I need special insurance to rent my house?

Yes. Consider landlord insurance, which provides coverage for liability, property damage, and loss of rental income. Require your tenants to carry renters insurance as well.

How do I screen tenants legally?

Use consistent screening criteria for all applicants. Perform credit and background checks, verify employment, and call references. Always follow Fair Housing laws to avoid discrimination.

Can I rent out my house if I still have a mortgage?

Yes, but check your mortgage agreement for any restrictions on renting. Some lenders or HOAs may require notice or approval.

How much rent should I charge?

Research similar properties in your area to determine a competitive rental rate. Consider your expenses and check for rent control laws in your city.