The Ultimate Guide to What to Expect as a Landlord

Posted by Onassis Krown on March 26, 2025

Everything You Need to Know About Being a Landlord

Becoming a landlord can be a rewarding way to generate income and build long-term wealth, but it also comes with responsibilities, challenges, and legal considerations. Whether you’re renting out a single-family home, a multi-unit property, or an apartment, it’s essential to understand what to expect. This guide covers everything from tenant screening to property maintenance, legal obligations, and handling difficult situations.

1. Understanding the Role of a Landlord

Being a landlord is more than just collecting rent. You’re responsible for:

Property Maintenance – Ensuring the rental unit is habitable and in good condition.
Tenant Management – Screening, leasing, and handling tenant concerns.
Legal Compliance – Following federal, state, and local laws regarding fair housing, safety, and evictions.
Financial Oversight – Budgeting for expenses, handling rent collection, and dealing with taxes.

If you’re considering this path, be prepared for the time and effort required to manage the property effectively.

2. Setting Up Your Rental Property

A. Preparing the Property

Before renting out a unit, ensure it meets local housing codes and is attractive to tenants. This may involve:

Making necessary repairs (e.g., fixing leaks, updating appliances).
Deep cleaning the space.
Adding safety features like smoke detectors and secure locks.
Painting walls in neutral colors for broad appeal.

B. Determining Rent Price

To set a competitive rent:

Research comparable properties in the area.
Factor in expenses like mortgage payments, taxes, insurance, and maintenance.
Consider demand—higher rent may be possible in sought-after locations.

A rent that’s too high may lead to vacancies, while one that’s too low can reduce profitability.

3. Finding and Screening Tenants

A. Advertising the Property

List your rental on platforms like Zillow, Craigslist, or Facebook Marketplace. Include:

High-quality photos.
A detailed description of the property.
Clear rent and lease terms.

B. Tenant Screening Process

To find reliable tenants, perform thorough screening, including:

Credit Check – A strong credit score suggests financial responsibility.
Income Verification – Ensure they earn at least 3x the rent amount.
Rental History – Contact previous landlords to check for late payments or issues.
Background Check – Look for criminal records or eviction history.

Avoid discrimination—adhere to Fair Housing Laws and apply the same criteria to all applicants.

4. Signing a Lease Agreement

A. Key Lease Terms

A lease should be legally sound and include:

Rent amount, due date, and late fees.
Security deposit details.
Lease duration (e.g., 12 months, month-to-month).
Rules regarding pets, smoking, and maintenance responsibilities.
Procedures for repairs and emergency contacts.

B. Security Deposits

State laws dictate how much you can charge for a security deposit and when it must be returned. Keep funds in a separate account and provide an itemized list of deductions when returning the deposit.

5. Managing Tenants and Rent Collection

A. Rent Payment Methods

To streamline rent collection, offer:

Online payments (Zelle, Venmo, PayPal, or a property management platform).
Direct bank transfers or checks.
Automated payment reminders.

Consider implementing late fees to encourage timely payments.

B. Handling Tenant Issues

Tenants may contact you about:

Maintenance requests (leaky pipes, broken appliances).
Noise complaints.
Disputes with neighbors.

Respond promptly to maintain good relationships and comply with legal obligations.

6. Property Maintenance and Repairs

A. Regular Maintenance Responsibilities

Landlords must ensure the property remains safe and functional. Regular tasks include:

HVAC servicing.
Pest control.
Roof and plumbing inspections.
Checking smoke detectors and carbon monoxide alarms.

B. Emergency Repairs

Certain issues require urgent attention, such as:

No heat or water.
Gas leaks.
Structural damage.

Failure to address these quickly can result in legal consequences and unhappy tenants.

7. Dealing with Late Payments and Evictions

A. Handling Late Payments

If a tenant misses rent:

Send a Reminder – Politely remind them of the due date.
Issue a Late Fee – If allowed by your lease.
Offer a Payment Plan – For short-term financial hardships.

B. Eviction Process

If rent is consistently unpaid or lease terms are violated:

Issue a Pay or Quit Notice – A legal warning that eviction will proceed if rent isn’t paid.
File for Eviction – If the tenant doesn’t comply.
Court Hearing – A judge will decide the case.
Tenant Removal – If approved, a sheriff may enforce eviction.

Always follow local laws to avoid illegal eviction claims.

8. Legal Considerations and Compliance

A. Fair Housing Laws

Landlords cannot discriminate based on:

Race, religion, or nationality.
Gender or familial status.
Disability.

Follow federal and state fair housing laws when selecting tenants and handling disputes.

B. Landlord-Tenant Laws

Each state has specific laws regarding:

Security deposit handling.
Lease termination notice periods.
Required property disclosures.

Know your state’s landlord-tenant regulations to avoid legal pitfalls.

9. Taxes and Financial Planning

A. Tax Deductions

Landlords can deduct expenses, including:

Mortgage interest.
Property taxes.
Maintenance and repairs.
Depreciation.

Keep detailed records for tax filing and consult an accountant if needed.

B. Budgeting for Unexpected Costs

Set aside funds for:

Emergency repairs.
Tenant turnovers.
Legal expenses (if needed).

A good rule is to save 10-20% of your rental income for unexpected costs.

10. When to Hire a Property Manager

If managing a rental feels overwhelming, consider hiring a property manager. They handle:

Tenant screening.
Rent collection.
Maintenance requests.
Legal compliance.

Property managers typically charge 8-12% of monthly rent, but they can save you time and stress.

Things to Know Before Becoming a Landlord

Becoming a landlord can be lucrative but requires effort, legal knowledge, and financial planning. By understanding your responsibilities, staying proactive with property maintenance, and handling tenants professionally, you can build a successful rental business.

If you’re just starting, take your time learning the process, and don’t hesitate to seek professional advice when needed. Be sure to read "Wear Your Krown" for more help!

Tags: landlord, real estate

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Onassis Krown