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There's a lot that can go wrong when listing your rental property.
You buy it. You prep it. Someone rents it. Right?
Not exactly.
Renting your property is straightforward. But there are a few easy mistakes you can make when rushing through the prep work. The good news is that doing it right isn't hard, nor does it require years of experience under your belt. It just helps to know what to do -- and in which order.
That's why this complete guide exists for first-time landlords.
By the end of this article, you'll know:
How to research your rental market before you list
How to price your rental the right way
What to do to get your property listing-ready
Why tenant screening isn't a step to rush through
What you need to know about the legal side of being a landlord
How to manage your property after tenants move in
Do Your Rental Market Research Before You List
Your rental market is probably more competitive than you think.
As of 2023, there are approximately 2,654 new renters coming to the market every day. That's an enormous amount of renters looking for a place to live -- and it also means more landlords trying to meet that demand.
Prior to listing a rental property, understand what renters in your area are searching for. Start by doing an online rental search like your future tenants would. Look at the competition and see what their rental prices are, what keywords they're targeting with their amenities, and how long their rentals have been listed.
Browsing apartments for rent the same way your future tenants would -- and knowing exactly where your rental stands in an online rental search -- gives you a huge advantage before writing a single word of your listing.
Once again: do your homework. Know what your competition is doing -- then do better.
Price Your Rental Property Appropriately
Rent is one area where first-time landlords often miss the mark.
Price it too high and your rental will struggle to find tenants. Price it too low and you could be leaving money on the table every month. Neither scenario is ideal, obviously.
Here's a better way to price your rental:
Find comps throughout your neighbourhood.
Ensure they match in bedroom count, square footage, and property type.
Calculate the average rental price across at least 10 comparable rentals.
Note if your rental has any standout amenities your comp rental may not have.
One last thing to consider… renters have more bargaining power than they've had in recent years. 85% of landlords raised rent prices in 2024, with close to one third of landlords increasing it between 6-10%. Ignore that market trend and you risk pricing too low.
Price it right. Then evaluate your pricing strategy once a year.
Prep Your Property to Be Listing Ready
Did you know...
Most rental applicants won't ever step foot into your rental before they rent it.
Yes, online renters are seriously judging your property by its photos alone. If your rental isn't accurately represented during online rental search, it will be skipped over -- no matter how great it actually is.
Ensure your rental is listing-ready by:
Deep cleaning the property inside and out.
Fixing any visible damages (holes in walls, broken fixtures, faded paint).
Taking spacious, natural photos of each room. Wide angle lens works best.
Decluttering everything throughout the home. closets and storage spaces too!
Pro-tip: Your listing description should be equally as specific. Say "nicely decorated kitchen" instead of "nice kitchen." The smaller details give your tenants confidence and help attract better qualified renters.
Don't Skip the Tenant Screening Process
Passing on tenant screening is a rookie mistake.
Bad tenants can cause serious headaches. And by serious, that means costing thousands of dollars. Repair bills, lost rent, legal fees. It all adds up quick.
Run every potential applicant through the same screening process. Your process should include:
A credit check. Payment history is more important than the credit score itself.
Income verification. Rent shouldn't exceed 30% of their gross monthly income.
Rental history. Call past landlords to verify responsible behavior.
A background check. Triple check this with a 3rd party screening company.
Bonus tip: Apply this criteria to every applicant. Using a different measurement for "qualified" vs. "high priority" applicants leaves you vulnerable to fair housing violations.
Understand the Legalities of Being a Landlord
This isn't 'By the book' -- this is 'Buy a new book.'
Landlord and tenant laws vary from state-to-state. And in many markets, they can vary street-to-street. Assuming the rules you learn online apply to your rental property is one of the most expensive mistakes you can make.
Familiarize yourself with:
Security deposit rules. How much can landlords charge? How long to return it?
Lease requirements. Some states have specific clauses landlords must (and can) include.
Entry notice. For non-emergencies, most states require 24-48 hour notice.
The eviction process. Know how eviction works before you ever have to use it.
Here's another thing to consider… 17% of landlords list "legal compliance" as one of their biggest struggles. Don't make it yours too by diving in blindly.
Have questions? Consider hiring a local real estate attorney to help navigate the process (yes, it will cost you -- but it's worth it!).
Learn How to Manage Your Property
Moving residents in is the easy part.
Once they're moved in, proper property management is what separates the good landlords from the great ones. And by 'great,' that means landlords who actually want to rent their property again.
Here are a few things to do (and do regularly) once your residents move in:
Take their maintenance requests seriously. If your renter calls about a small maintenance issue, try your best to accommodate them quickly. Ignored tenants become difficult tenants. An extra day to fix a leaky faucet can cost you that tenant down the road.
Inspect your property. Your renters aren't the only ones who should be regularly inspecting your property. With proper notice, most states allow landlords to perform periodic inspections. Use them. Spotting that small mold spot before it grows dramatically decreases your repair bill.
Document everything. Repair requests, rent payments, inspection summaries, notes, conversations -- anything can be used against you in a dispute. So never let your tenants catch you without documentation to back up your story.
Ready for the 'wow' stat? 80% of rental properties owned by landlords are self-managed. That means 80% of landlords are doing what you're reading right now: managing their rental on their own.
Just make sure you have systems in place from day-1.
Key Takeaway
Throwing your property on the market without preparing is gambling with your deposit.
Successful landlords prepare just as much as they list. Research the local rental market online. Price your rental appropriately. Screen your tenants thoroughly. Know the law like the back of your hand. And have a management plan ready for when your tenant moves in.
Follow this framework. Your experience will thank you later.
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