Renting Out Your Property in the United States: A Landlord's Guide

A comprehensive rental agreement should include: names of all tenants, property address, lease term, rent amount and due date, security deposit details, maintenance responsibilities, rules about pets, noise, and guests, entry notice requirements, and conditions for lease termination. Consider using a state-specific template as landlord-tenant laws vary by state. Having an attorney review your lease is recommended, especially for your first rental property.

Security deposit limits vary by state. For example, California limits security deposits to two months' rent for unfurnished units, while states like Texas have no statutory limit. Check your specific state's laws as they also regulate when deposits must be returned (typically 14-30 days after move-out) and whether interest must be paid on deposits. Always provide tenants with a written receipt for security deposits and document the property's condition before move-in.

Registration requirements vary by location. Many cities and counties require landlords to register rental properties and obtain a business license or permit. Some jurisdictions also require rental inspections before you can rent out your property. Check with your local housing department, city hall, or county clerk's office to determine the specific requirements in your area. Failure to register when required can result in fines.

Landlords are legally required to maintain habitable living conditions, including functioning plumbing, electrical systems, heat, and structural integrity. You must address safety hazards promptly and comply with local building codes. Many states require landlords to make repairs within a specific timeframe after notification. Failure to maintain the property can result in tenants withholding rent, breaking the lease, or suing for damages in some jurisdictions.

You can legally screen tenants based on credit history, income verification, rental history, and criminal background checks, but you must apply the same screening criteria to all applicants. The Fair Housing Act prohibits discrimination based on race, color, national origin, religion, sex, familial status, or disability. Some states and cities have additional protected classes. Always get written consent before running credit checks, and provide adverse action notices if you deny an applicant based on their credit report.

No. Most states require landlords to give advance notice (typically 24-48 hours) before entering a rental property, except in emergencies. The notice requirement and allowable reasons for entry vary by state. Common legally permitted reasons include making repairs, showing the property to prospective tenants, and inspections. Entering without proper notice or for unauthorized reasons could constitute illegal trespassing and violation of the tenant's right to quiet enjoyment.

Rental income is generally subject to federal income tax and must be reported on your tax return. You may also owe state and local income taxes depending on your location. However, you can deduct many expenses including mortgage interest, property taxes, insurance, maintenance, repairs, and depreciation. Consider consulting with a tax professional familiar with rental properties, as tax laws are complex and change frequently. You may need to make quarterly estimated tax payments if you expect to owe significant taxes.

Yes, standard homeowner's insurance typically doesn't cover rental activities. You should obtain a landlord or rental dwelling policy that covers the building, liability protection if someone is injured on your property, and lost rental income if the property becomes uninhabitable due to a covered loss. Consider requiring tenants to obtain renter's insurance to cover their personal belongings and potential liability. Some landlords make this a condition in the lease agreement.

Eviction procedures are strictly regulated and vary by state. Generally, you must: 1) Have legal cause (e.g., non-payment of rent, lease violations), 2) Provide proper written notice with the specific timeframe required by your state, 3) File an eviction lawsuit if the tenant doesn't comply, 4) Attend the court hearing, and 5) If granted, have law enforcement remove the tenant if they don't leave voluntarily. Self-help evictions (changing locks, removing belongings, shutting off utilities) are illegal in all states and can result in significant penalties.