Landlord FAQ

You do not legally need an LLC to rent out a property, but many landlords form one for liability protection. An LLC separates your personal assets from any lawsuits or claims related to your rental property. Consult a local attorney before deciding.

Set rent based on comparable rentals in your area — search listing sites for similar size, condition, and location. Price too high and you get vacancies; too low and you leave money on the table. Factor in your expenses: mortgage, taxes, insurance, maintenance, and vacancy.

At minimum: names of all tenants, property address, lease term, rent amount and due date, late fee policy, security deposit amount and return terms, maintenance responsibilities, rules on guests and pets, and grounds for eviction. Use a state-specific lease template from a reputable source.

Use a consistent written application for all applicants. Run a credit check, background check, and verify income (typically 3x monthly rent). Check references. Follow Fair Housing laws — you cannot reject based on race, color, national origin, religion, sex, familial status, or disability.

Common deductible expenses include mortgage interest, property taxes, insurance, repairs and maintenance, property management fees, advertising, depreciation, and travel related to the rental. Keep receipts for everything. Consult a CPA who works with real estate investors.