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🏠 What Every New Landlord Needs to Know Before Renting Out a Property

Becoming a landlord can be a rewarding way to build wealth—but it’s not as simple as handing over the keys and collecting rent. Whether you’re renting out a single-family home or an investment property, it’s crucial to understand your responsibilities, legal requirements, and how to protect your investment.


Here’s what every new landlord should know before renting out a property:


1. Understand Your Legal Responsibilities

Landlords are subject to local, state, and federal laws that protect both tenants and property owners.

  • Fair Housing Laws: You must treat all applicants equally regardless of race, religion, gender, familial status, or disability.

  • Habitability Standards: The property must be safe, clean, and meet basic living standards (e.g., functioning plumbing, heating, and smoke detectors).

  • Security Deposit Limits: Know how much you can legally collect and how quickly it must be returned after the lease ends.


📍 In California, for example, the security deposit for an unfurnished rental can’t exceed 2 months’ rent.


2. Create a Strong Lease Agreement

A well-written lease protects you and your tenant by outlining expectations and legal boundaries.


🔐 Key clauses to include:

  • Rent amount and due date

  • Length of lease term

  • Late payment penalties

  • Maintenance responsibilities

  • Rules on pets, smoking, subletting, etc.

  • Procedures for termination and eviction


Tip: Always have a lawyer or property manager review your lease to ensure it complies with local laws.


3. Screen Tenants Thoroughly

Don’t rush the tenant selection process. The wrong tenant can cost you thousands in unpaid rent, legal fees, or property damage.


✅ Your screening process should include:

  • Rental application with references

  • Credit check

  • Employment and income verification

  • Background check (if permitted in your area)

  • Interview or phone conversation


Always apply the same process to every applicant to avoid discrimination claims.


4. Set the Right Rent Price

Research comparable properties in your area to determine a fair market rent. Pricing too high may leave your unit vacant—too low and you could lose money.


Tip: Consider using tools like Zillow Rental Manager or Rentometer to help with rental comps.


5. Plan for Maintenance and Repairs

Even with great tenants, things will break or wear out. As a landlord, it’s your responsibility to handle repairs quickly and maintain the property’s condition.


🧰 Be prepared to:

  • Budget for ongoing maintenance

  • Handle emergency repairs 24/7 (or hire a property manager)

  • Keep up with seasonal maintenance (HVAC, gutters, landscaping)


6. Keep Detailed Records

Good documentation is essential for taxes, legal protection, and evaluating your investment’s performance.


📁 Track:

  • Lease agreements

  • Rent payments

  • Repair receipts

  • Communication with tenants

  • Property-related expenses


7. Know When to Get Help

Managing a rental property takes time and effort. If you’re not comfortable handling maintenance, screening, or lease enforcement, consider hiring a professional property manager.


Final Thoughts

Becoming a landlord can provide steady cash flow and long-term equity growth, but success depends on preparation and good management. Start with clear expectations, know your legal responsibilities, and treat your rental like a business.


👉 Ready to rent out your property or have questions about being a landlord in Sacramento? Let’s talk!


Scott Sweeney

Your NorCal Realtor

M&M Real Estate

BRE Lic# 01938720

Cell: Call/Text 707-330-2324


About Scott Sweeney


SweeneySells

Full Time Realtor 13 Years +

Over 100 Families Served

Top 5% Producing Agent

Buying & Listing Specialist

Contract & Negotiation Ninja

CSUS Business & Marketing Graduate 2006


With quickly serving over a 100 families, Scott Sweeney has become a top 5% producing Realtor in the greater Sacramento area who has helped clients from the Bay Area to South Lake Tahoe. Scott has a Bachelor Of Science in Business Administration, with a concentration in Marketing from CSUS. His education, and extensive background in the hospitality, marketing, and real estate industries, have helped Scott to become one of the leading, and most sought after agents in the area.


Reach out to SweeneySells today, and take the first step towards your real estate goals!

📞707-330-2324




Top Producer 2016-2023


"I appreciate your business & referrals!"


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