Leasing out your home can be a smart financial move—whether you’re relocating for work, downsizing, or simply looking to generate extra income. But turning your primary residence into a rental property isn’t as easy as handing over the keys. It requires careful planning, legal awareness, and a solid strategy to ensure success. In this ultimate guide, we’ll walk you through everything you need to know about leasing out your home.
1. Understand Your Motivation and Goals
Before jumping into the rental market, ask yourself: Why am I leasing out my home? Your motivation will influence how you manage the process. Are you planning to return to the home later? Do you want to turn it into a long-term investment? Is it a temporary income solution? Having a clear goal helps you make smart decisions, from lease terms to property management options.
2. Check Local Laws and HOA Rules
Different cities, counties, and states have varying regulations for leasing a home. Start by researching:
- Zoning laws: Some neighborhoods may have restrictions on rentals.
- Short-term vs. long-term leases: Platforms like Airbnb may be limited in certain areas.
- Homeowners Association (HOA) rules: If you live in an HOA, confirm whether leasing is allowed and under what conditions.
Failing to comply with local ordinances or HOA rules can lead to fines or legal headaches.
3. Inform Your Lender and Insurance Company
If you still have a mortgage on your home, you may need to inform your lender that you’re turning the property into a rental. Some loans have occupancy clauses that could be impacted.
Additionally, update your homeowner’s insurance policy to a landlord policy. Standard coverage typically doesn’t protect rental activity. Consider requiring your tenants to carry renters insurance as well.
4. Prepare the Property for Tenants
A well-maintained home attracts better tenants and commands higher rent. Before listing your property:
- Deep clean the entire home.
- Repair any damage or deferred maintenance (leaky faucets, broken locks, etc.).
- Install safety features, such as smoke detectors and carbon monoxide alarms.
- Remove personal items and valuables.
- Consider upgrades, such as new paint, flooring, or appliances, if it increases appeal.
Think of it as preparing the home to be someone else’s comfortable and secure living space.
5. Set the Right Rental Price
Pricing your rental appropriately is key to attracting tenants quickly without leaving money on the table. Research comparable rentals in your area to determine a fair market rate. Take into account:
- Location and neighborhood desirability
- Size and layout
- Condition and amenities
- Utilities or services included
You can also consult with a property manager or real estate professional for a pricing recommendation.
6. Market Your Property
Use professional-quality photos and write a detailed, appealing description that highlights your home’s best features. List your property on popular rental websites like Zillow, Apartments.com, or Rent.com. Social media and local classifieds can also be effective.
Make sure to include key details like:
- Monthly rent
- Security deposit amount
- Lease term
- Pet policies
- Available date
Respond quickly to inquiries and schedule showings for serious applicants.
7. Screen Tenants Carefully
A thorough tenant screening process can save you from late payments, property damage, and legal trouble. At minimum, you should:
- Run a credit check
- Verify employment and income
- Contact previous landlords
- Conduct a background check
Establish clear criteria (e.g., minimum income, no prior evictions) and apply them consistently to avoid discrimination.
8. Use a Strong Lease Agreement
A solid lease protects both you and the tenant. Make sure your lease includes:
- Rent amount and due date
- Lease duration and renewal terms
- Security deposit details
- Maintenance responsibilities
- Rules on subletting, pets, and guests
- Procedures for late payments and eviction
Consider having your lease reviewed by a lawyer or using a template compliant with your state laws.
9. Decide on Property Management
Managing a rental property requires consistent time and attention—especially if you live out of town or have a full schedule. In such cases, partnering with a professional property management company can be a smart investment. In Salt Lake City, numerous reputable property managers offer comprehensive services designed to simplify your landlord responsibilities. These companies can:
- Handle tenant communication
- Collect rent
- Arrange repairs
- Enforce lease terms
- Manage turnovers
Property managers typically charge 8–12% of the monthly rent, but they bring peace of mind and professionalism to the process.
10. Maintain the Property
Being a landlord means staying on top of maintenance. Promptly address repair requests and conduct regular inspections (with proper notice) to catch issues early. Keeping the property in good condition not only retains tenants but also preserves your investment.
Final Thoughts
Leasing out your home can be a rewarding venture when done correctly. With the right preparation, reliable tenants, and clear expectations, your primary residence can become a valuable income-producing asset. Whether you choose to manage it yourself or bring in professionals, staying informed and proactive is the key to leasing success.
