Congratulations on your first rental property. Whether you've inherited a home, converted your primary residence, or purchased an investment property, becoming a landlord is a significant step. Here's everything you need to know to get started right.
Before You List
Legal Preparation
- Obtain a business license if required by your city
- Register with the city — Seattle requires landlord registration
- Create an LLC (recommended) to protect personal assets
- Get landlord insurance — standard homeowner policies don't cover rental activities
- Review local landlord-tenant laws — especially notice requirements and just-cause eviction rules
Property Preparation
- Complete all necessary repairs — the property must meet habitability standards
- Install smoke and carbon monoxide detectors on every floor
- Change all locks and provide new keys
- Deep clean the entire property
- Document the property's condition with photos and a written checklist
- Consider a pre-rental inspection to identify potential issues
Financial Setup
- Open a separate bank account for rental income and expenses
- Set up a security deposit trust account (required in Washington)
- Create a budget that includes mortgage, insurance, taxes, maintenance reserves, and vacancy allowance
- Understand your tax obligations — rental income is taxable, but many expenses are deductible
Setting Your Rent
Research comparable rentals in your area to determine a competitive rate. Look at similar properties in terms of size, condition, location, and amenities. Consider using a property management company's market analysis or AI pricing tools for data-driven pricing.
Finding Tenants
Marketing
- List on major rental platforms (Zillow, Apartments.com, Redfin, Craigslist)
- Take high-quality photos — this is not optional
- Write a detailed, honest description
- Respond to inquiries quickly
Screening
- Use a consistent, documented screening process
- Run credit, criminal, eviction, employment, and reference checks
- Apply the same criteria to every applicant
- Follow fair housing laws strictly
Lease
- Use a Washington state-compliant lease template
- Include all required disclosures (lead paint, mold, etc.)
- Clearly state rent amount, due date, late fees, and pet policies
- Conduct a thorough move-in inspection with the tenant
Managing the Property
Ongoing Responsibilities
- Collect rent on time every month
- Respond to maintenance requests promptly
- Conduct periodic property inspections (with proper notice)
- Maintain accurate financial records
- Stay current on changing laws and regulations
When to Consider Professional Management
- You own multiple properties
- You live far from the rental
- You don't have time for day-to-day management
- You're uncomfortable with legal compliance requirements
- You want to scale your portfolio
Common First-Time Landlord Mistakes
- Not screening tenants thoroughly — this is the number one mistake
- Underestimating expenses — budget for the unexpected
- Being too lenient on late rent — consistency protects you legally
- Neglecting maintenance — small problems become big ones
- Not knowing the law — ignorance can be extremely expensive
You've Got This
Being a landlord is a learning process. Start with solid systems, stay organized, and don't be afraid to ask for help when you need it. The landlords who succeed are the ones who treat it like a business from day one.