How to Rent a House to Someone

Learn as much as you can before you rent out your home. There are books, websites and forums on the topic. Check with the Housing and Urban Development agency office in your town so that you know what your legal obligations will be and how to handle applications, approvals, evictions and deposits.

Get a lawyer. A lawyer specializing in landlord/tenant issues will help you create your landlord policies, write up applications and contracts and help you to understand fair housing law.

Set your price. Figure out what to charge based on what other landlords in the area are charging, and how much your mortgage plus all repairs and maintenance will cost you. Calculate your cost and what your profit might be. Prepare for the worst case scenario as well.

Determine how you will handle maintenance issues. You are responsible for providing a fully functioning home for your tenant, and should problems arise you must respond in a timely fashion. You can do the repairs yourself or find a carpenter, plumber, electrician, lawn care provider and heating and air person who you can trust.

Get the property ready to show to potential tenants. Will it be furnished or unfurnished? Will you be providing appliances? Make sure these are all in good repair.

Advertise the rental and screen potential applicants. There are legal restraints for how you decide to approve or deny an applicant. Be sure to disclose credit and rental history checks to the potential tenant in advance.

Accept rental monies but do not treat it as your own. Set up a separate account for these funds as well as an account to which you regularly contribute to pay mortgages, utilities, and maintenance costs as they arise. Ask your lawyer if there are any issues in your state regarding how to handle rental money before you do anything with it and get yourself into hot water.