Life doesn’t always go according to plan — and sometimes, that’s a good thing! Whether you’re relocating for work, moving in with a partner, or simply not ready to sell your current home, renting it out can be a smart financial move. Many homeowners choose this route to generate passive income, hold onto a property they expect to appreciate, or keep the door open for a future return. But while being a landlord has its rewards, it also comes with a fair share of responsibilities.
If you're asking yourself, "How do I rent out my house," this guide will walk you through every step. We’ll cover everything from deciding whether renting is right for you to preparing the property, understanding your legal obligations, finding great residents, and maintaining the home over time.
Let’s dive in!
Decide If Renting Out Your House Is the Right Move
Before you list your property for rent, it’s important to assess whether this is the best financial and emotional decision for your situation. Renting can be an excellent way to build long-term wealth, especially if your property is in a desirable location with rising home values. It can also provide ongoing income to cover your mortgage or even generate a profit. However, you’ll also want to weigh the pros and cons compared to selling. Renting means becoming a landlord — managing maintenance, responding to resident concerns, and staying on top of legal requirements.
If you're looking for a clean break or quick cash, selling might be the better route.
From a financial perspective, you’ll need to ensure you can still cover the mortgage, taxes, insurance, and any homeowners association (HOA) fees while maintaining a buffer for unexpected expenses. Keep in mind that insurance costs can increase once you switch from homeowner to landlord coverage.
Finally, take a moment to evaluate your emotional readiness. Are you comfortable with strangers living in your home? Can you detach from personal memories and treat this as a business venture? These are crucial questions that can help guide your decision.
Check Local Laws and HOA Rules
Once you’ve decided to move forward with listing your property as a rental, the next step is understanding the legal landscape of renting out your property. Rental laws vary significantly by city, county, and state, so it’s important to do your research. Your local zoning department can tell you whether your property is zoned for residential rentals and if any licenses or inspections are required. Many cities have rules specific to short-term versus long-term rentals, so you’ll want to decide how you plan to rent — on a 12-month lease or through platforms like Airbnb — and ensure you're in compliance.
Beyond zoning, you’ll need to understand the landlord-resident laws in your state. These laws govern how leases should be written, what rights residents have, how much notice is required for entry or eviction, and how security deposits should be handled. If your home is part of an HOA, check their bylaws for any restrictions on renting. Some associations limit the number of homes that can be leased or require lease agreements to be approved in advance. Failing to follow these rules can result in fines or even legal action, so it’s always best to double-check before moving forward!
Crunch the Numbers
Now it’s time to break out the calculator and take a close look at the financial side of renting.
Start by researching the rental market in your area. Look at listings for properties similar to yours in size, condition, and location. Sites like Zillow, Rentometer, and local property management companies can give you a ballpark estimate of your home’s rental value.
Once you have a sense of what your rental income could be, compare it against your monthly expenses. These expenses go beyond your mortgage. Don’t forget to account for property taxes, insurance (which may be higher for rentals), routine maintenance, occasional repairs, and any property management fees if you choose to hire help. You'll also want to plan for vacancy periods — most landlords deal with occasional gaps between residents.
An impactful process to go through when running the numbers is creating a break-even analysis. Creating a break-even analysis will help you understand how much you need to earn to cover costs and what kind of return on investment (ROI) you can expect over time. This step ensures you’re not just breaking even but ideally making a profit.
Prepare Your Property for Renters
A clean, safe, and well-maintained property will attract higher-quality residents and can warrant a higher rental rate. When preparing your property for residents, it’s important to be detail-oriented and comprehensive with your cleaning and repairing efforts. Start with a thorough deep clean to get rid of any dirt, grime, or lingering odors. Declutter each room and remove personal items to help prospective residents envision themselves in the space. Once that’s done, walk through the home and make any necessary repairs. Fix leaky faucets, squeaky doors, chipped paint, or outdated fixtures. These small touches can make a big difference in first impressions.
Next, turn your attention to the exterior of the home. Curb appeal matters, especially for online listings. Mow the lawn, trim hedges, and consider adding a fresh coat of paint to the front door. Finally, ensure the home meets local safety requirements. Test all smoke and carbon monoxide detectors, check fire extinguishers, and schedule any required inspections. If your city or state mandates a rental inspection before occupancy, be sure to complete it before marketing your home. Check out our full guide on how to get your property rent-ready for in-depth guidance!
Set a Competitive Rental Rate
Deciding on how much you will charge for your property each month is both an art and a science. If priced too high, your home may sit vacant, which means you lose money. Too low, and you leave money on the table. To strike the right balance, research comparable rentals in your area. Look at features like square footage, number of bedrooms and bathrooms, upgrades, and neighborhood amenities. Make sure you’re comparing apples to apples and try to stay realistic about what your property offers.
Online tools like Zillow’s Rent Zestimate or Rentometer can provide additional insight, but don’t rely solely on algorithms. Use them as a starting point, then factor in your property’s unique features and how it fits in amongst the local market. You’ll also want to consider current demand in your area. If demand is high, you may be able to price slightly above average; if it’s slow, competitive pricing will help you fill the unit faster. Ultimately, your goal is to price your home in a way that attracts responsible residents and keeps your property generating consistent income.
Market Your Rental Property
Once you have determined the best price for your rental and the property is rent-ready, it’s time to get the word out to potential residents! We always recommend that you start by listing the property on popular rental platforms like Zillow, Apartments.com, and Facebook Marketplace. Each site has its strengths and weaknesses, so casting a wide net will help you reach more potential renters.
When writing your property listing, be clear, honest, and engaging. Highlight your home’s best features—whether that’s a renovated kitchen, a spacious backyard, or its proximity to good schools. A well-written listing can make your property stand out in a sea of options.
Along with an honest and engaging description should be great property photos, both inside and outside. Take high-quality, well-lit pictures of each room and each main outdoor space, and consider staging the home to make it more inviting. Open the blinds, clean up clutter, and add simple decor to make the space feel warm and welcoming. Good visuals help potential residents picture themselves in the home, which can increase inquiries and speed up the leasing process.
Screen Residents Carefully
If all goes to plan, you should receive plenty of applications from residents who want to rent your property. How you review and screen these applicants is absolutely crucial to the success of your rental property.
A thorough and well-designed screening process helps protect the overall condition of your property, reduce resident turnover, and ensure consistent income. We recommend that landlords start by creating a comprehensive rental application that collects basic personal details, employment and income information, rental history, and references from both previous landlords and personal contacts who can speak to a potential resident’s character.
Once you’ve received applications, run background and credit checks to assess financial reliability and spot any red flags. Contact previous landlords to ask about payment history, care of the property, and overall behavior. These references are often more valuable than any credit score in painting a full picture of a resident.
It’s equally important to understand what you can’t do during the screening process. Fair Housing Laws prohibit discrimination based on race, religion, national origin, sex, familial status, disability, and other protected classes. Focus your evaluation on factors like income, credit history, and prior rental behavior to ensure you’re staying compliant and giving applicants a fair chance. Once you’ve gathered all the information and done your due diligence, choose the applicant who best fits your criteria and feels like a trustworthy, responsible match for your home!
Draft a Strong Lease Agreement
An element that is equally important to selecting a reliable resident is creating a solid lease agreement. A great lease agreement sets the foundation for a successful rental relationship and protects all parties. It should clearly outline all the important details of a tenancy including the monthly rental rate, rent due date, lease length, security deposit amount and other fees, resident vs. landlord maintenance responsibilities, and any rules about pets, smoking, or subletting.
It’s also important to ensure that a lease complies with your state’s specific laws. These laws may dictate how much you can charge for a deposit, when you must return it, and how notice periods should be handled. You can often find state-specific lease templates online, but it’s a good idea to have an attorney or property manager review the document to ensure it’s legally sound
Don’t forget to include policies around lease renewals, late fees, utilities, and property access. The more thorough your lease, the fewer surprises (and disputes) you’ll face later on.
Handle Move-In Logistics
With the lease signed, it’s time to officially welcome your new resident! Before handing over the keys, collect the security deposit and first month’s rent. Ensure funds have cleared, especially if your resident is paying by check or bank transfer.
Schedule a walk-through of the property with your resident on move-in day and use a condition checklist to document the home’s state upon move-in, noting any existing wear and tear. The information from this checklist protects both parties when your resident moves out. Take photos for extra documentation, and have the resident sign off on the checklist so everyone is on the same page.
Finally, provide keys, garage remotes, and any important information about utilities, trash pickup, maintenance contacts, and emergency procedures. A smooth, professional move-in sets the tone for the rest of the lease term and goes a long way in establishing trust with your brand-new resident.
Maintain the Property and Be a Good Landlord
Your relationship with your resident doesn’t end after move-in; it is only beginning! Efficient communication and reliable support are key to long-term success during a tenancy. Stay on top of routine maintenance like HVAC servicing, gutter cleaning, pest control, and landscaping. Preventative property care keeps your property in good condition and minimizes costly repairs later. Be responsive, professional, and respectful when interacting with your resident and make it easy for them to report issues and address concerns in a timely manner. Be sure to establish a clear emergency plan (and have reliable vendors on call) to ensure you're prepared when urgent issues arise.
Lastly, stay up to date with landlord-tenant laws and compliance requirements in your area. Laws can change, and staying informed protects your investment and your resident.
Consider Going With a Pro
At this point, we hope it’s clear that the ins and outs of managing a rental property are rewarding while also being time-consuming and stressful. If the idea of screening residents, handling repairs, or navigating legal requirements sounds overwhelming, hiring a property manager might be the right choice for you.
A good property management company will handle marketing, leasing, maintenance, inspections, rent collection, and legal compliance on your behalf. While you’ll pay a fee for these services, many landlords find it well worth the cost, especially if they live out of town or simply prefer a more hands-off approach. Whether you choose to self-manage your property or hire a professional, we hope this guide will help you make the right decision for you!
Final Thoughts: Setting Your Rental Property Up for Success
Renting out your home is a major step, and like any worthwhile endeavor, it takes planning and effort. But if you approach it thoughtfully and follow the right steps, it can lead to long-term financial stability and growth.
From prepping your home and researching rental laws to finding great residents and maintaining the property, every part of the process contributes to your success.
Take it one step at a time, stay informed, and don’t hesitate to reach out for professional support when needed. Evernest is a great option if you are ready to bring a team of professionals with national and regional expertise on your side.
Reach out to the Evernest team in your area to get started today!
