Tips for first time landlords

1. Legal & Compliance

• Understand Landlord-Tenant Laws – Familiarize yourself with federal, state, and local laws (e.g., security deposit limits, eviction procedures, tenant rights).

• Lease Agreement – Use a legally sound lease with clear policies on rent, maintenance, pets, late fees, etc. Consider consulting an attorney.

• Fair Housing Laws – Avoid discrimination in tenant selection based on race, religion, family status, disability, etc.

• Required Disclosures – Be aware of lead-based paint disclosures (for homes built before 1978) and any local rental ordinances.

• Licensing & Permits – Some cities require rental property licenses or registration. Check local regulations.

• Proper Notices – Learn notice periods for rent increases, lease termination, and entry into the unit.

2. Tenant Screening & Lease Agreements

• Create a Tenant Screening Process – Require applications, credit checks, background checks, and rental history.

• Income Verification – Ensure tenants make at least 3x the rent (varies by market). Ask for pay stubs or bank statements.

• Check References – Call previous landlords to ask about payment history, lease violations, and property care.

• Security Deposits – Follow legal guidelines for collection, storage, and return. Keep funds in a separate account.

• Have a Solid Lease Agreement – Clearly define:

  • Rent amount and due date

  • Late fees & penalties

  • Maintenance responsibilities

  • Pet policy

  • Lease termination clauses

• Move-in Checklist – Document property condition before the tenant moves in with photos/videos.

3. Rent Collection & Finances

• Set Market Rent – Research comparable properties to set competitive rent.

• Use an Online Payment System – Reduce the hassle by using platforms like Zillow, Apartments.com, or Avail for automated payments.

• Enforce Late Fees – Be consistent with policies to avoid tenants taking advantage.

• Keep an Emergency Fund – Set aside 3-6 months of expenses for repairs, vacancies, and unexpected costs.

• Track Income & Expenses – Use software like Stessa, Buildium, or QuickBooks for accounting.

• Understand Tax Deductions – Write off mortgage interest, property taxes, repairs, insurance, depreciation, and more.

4. Property Maintenance & Repairs

• Routine Inspections – Schedule periodic inspections to ensure the property is maintained.

• Respond Promptly to Maintenance Requests – Delays lead to bigger problems and unhappy tenants.

• Have a Reliable Handyman & Vendors – Build relationships with contractors for plumbing, electrical, and HVAC repairs.

• Landscaping & Curb Appeal – First impressions matter, even for rentals.

• Pest Control Plan – Preventative treatments save money over time.

5. Dealing with Tenants & Lease Violations

• Set Clear Expectations – Communicate house rules and enforce them consistently.

• Address Issues Early – Don’t let late payments, noise complaints, or lease violations slide.

• Maintain Professionalism – Treat tenants as clients, not friends.

• Handle Evictions Properly – If necessary, follow legal eviction procedures—never take matters into your own hands (e.g., locking out tenants).

• Cash for Keys Option – Instead of eviction, offer a small payout for tenants to leave voluntarily (saves time and legal fees).

6. Insurance & Risk Management

• Landlord Insurance – Standard homeowner’s insurance does not cover rental properties. Get landlord-specific coverage.

• Require Renter’s Insurance – Protects your property in case of tenant negligence (e.g., fire, water damage).

• Liability Coverage – Ensure your policy includes liability protection in case of tenant injuries.

• Umbrella Policy – Extra protection for landlords with multiple properties.

7. Vacancy & Tenant Retention

• Market Your Rental Effectively – List on Zillow, Craigslist, Facebook Marketplace, and local rental sites.

• Professional Photos & Staging – Well-lit photos and clean spaces attract better tenants.

• Competitive Lease Renewals – Offer small rent increases to retain good tenants instead of risking vacancy.

• Improve Tenant Experience – Quick responses, good maintenance, and respect lead to long-term tenants.

8. Long-Term Strategy & Scaling

• Plan for Future Investments – Use profits to reinvest in more properties.

• Build a Team – Consider a property manager as you scale.

• Network with Other Investors – Join local real estate meetups or online groups.

• Learn Creative Financing – House hacking, BRRRR, and partnerships can help expand your portfolio.

Final Advice for First-Time Landlords

• Stay organized with documents, leases, and tenant communications.

• Be firm but fair—don’t let tenants push boundaries.

• Treat your rental as a business, not a hobby.

• Continue learning—real estate laws and market trends change over time.