Real estate has always been a top long-term investment strategy for Americans. It was chosen by 24% of respondents in Bankrate’s 2025 Long-Term Investment survey. It held the top spot at 29% in the 2022 survey.
Be careful if you’re about to get into this profitable venture with your first property. Being a first-time landlord has at least one phenomenon in common with being a first-time parent. You’ll hear all kinds of advice.
Narrow your focus and look at your property like a business. Only listen to advice that will help you make it more profitable.
Read our San Diego landlord guide to learn seven of the best tips for succeeding with your first property.
1. Prepare the Property for Rent
Conduct a thorough inspection before you put the property on the market. Look for any maintenance issues or structural damage. Check that all the essential systems are working, including:
- Plumbing
- Heating
- HVAC
- Electricity
Once you’ve verified that everything’s up to code, it’s time to turn to the aesthetic part of the property. Do a deep cleaning to make it appealing to renters.
A few property upgrades may also be in order. They’ll provide a high return on investment by helping you attract higher-paying tenants.
2. Market and Set a Competitive Rental Rate
When your property is ready to rent, it’s time to let the world know by marketing it.
One of the most difficult parts is deciding what rental rate to charge.Do a comparative market analysis of other similar properties in the area. Factor in:
- Age
- Condition
- Amentities
- Location
- Market trends
It’ll help you settle on a just-right rental right. It won’t be low enough to have you leaving money on the table or high enough to scare away potential renters.
Remember that your rate doesn’t have to be static. As long as you don’t disobey rental increase laws, you can raise or lower it whenever necessary, depending on market conditions.
When you have your rate, what do you do with it? Put it on one of your most powerful marketing tools: property listings.You should also include detailed, enticing descriptions and professional photographs.
Show the property off in other ways. Create a website for it and use the power of social media. Host open houses, including virtual tours for those who can’t show up in person. Network with other local investors.
3. Brush Up on Landlord-Tenant Laws
Think back to when you were a student and that classic complaint went through your mind; “when will we ever use this in real life?” A first-time landlord may not realize how often they’ll need to refer to the landlord-tenant laws in their state.
You don’t need to become a legal expert overnight. You do need to get familiar with the regulations that affect your daily operations, such as:
- Security deposit limits
- Rent control and rent increases
- Fair housing
- Evictions
The laws are also constantly changing, so keep up with any new developments. Non-compliance comes with major financial consequences and hurts your reputation.
4. Draft Comprehensive Lease Agreements
One of the best pieces of beginner landlord advice is to refer to your tenant’s lease if anything goes wrong.
It needs to be a rock-solid document that outlines everything expected from you and your tenants. This includes but is not limited to:
- Lease duration
- Rent amount
- Acceptable payment methods
- Due date
- Grace periods
- Late fees
- Maintenance responsibilities
- Eviction procedures
Consider getting the lease professionally reviewed before you give it to your tenants. You want to make sure it’s clear and includes everything you need it to. You also want to make sure it doesn’t have any illegal and unenforceable clauses.
5. Screen Tenants Thoroughly
Remember to always screen your tenants thoroughly. It’s more than one of the best rental property tips. It’s an essential step to protect you and your property. Start by verifying all the information they give you in the rental application. Then, look into their:
- Criminal history
- Credit history
- Employment history
- Rental history
Ask for at least two references from previous employers or landlords and verify their identities. Tenants may list family members or friends. If you can prove they’ll provide an unbiased opinion, call them up to get a clear picture of the tenant’s past behavior.
Screening is a powerful preventative measure. It protects you from the types of applicants you’d eventually need to evict due to issues such as property damage or late payments. A bit of extra time going through their details now saves you the financial headaches and wasted time later.
6. Get Landlord Insurance and Require Renter’s Insurance
Many pieces of landlord advice involve preparing you for potential dangers, and that includes emphasising the importance of insurance.
Landlord insurance isn’t the same as traditional homeowner’s insurance. It protects you from liability in case of any damages or disputes.
It also prevents the loss of rental income. That can have a major impact during long periods of vacancies.
Require your renters to carry renter’s insurance as well for added protection. It covers their belongings in case of damage and protects you from liability.
7. Consider Hiring Property Management
A property management company can remove the fear of the exciting but overwhelming step of being a first-time landlord.
They can take care of everything, including:
- Property maintenance
- Property marketing
- Tenant screening
- Lease management
- Rent collection
- Financial management
- Legal compliance
Think of the manager as your partner in the rental process.They can ease your burden and offer property management tips to help you become a more experienced landlord.
Get Help as a First-Time Landlord Today
Being a first time-landlord doesn’t have to be frightening. Remember to prepare and market the property, draft comprehensive leases, screen tenants, get insurance, and hire property management.
Next Level Property Management is a team of licensed professionals with the best tools on the market. Our comparison tools help you set rental rates, and our tenant screening system helps you quickly find qualified tenants. We also help you navigate legal issues such as evictions and HOA regulations.
Contact us to start maximizing the return on your investment today, whether you’re a new investor or have a large portfolio.