How to become a landlord: the first steps
You become a landlord by owning a home or unit and renting it to a tenant under a written lease. In order: decide what you will rent, learn the rules that apply to every landlord, insure the property, set up separate records, write the lease, and screen applicants the same way every time. None of it needs a license in most places, but your city or state may ask you to register.
The steps in order
Most first time landlords either buy a property to rent or keep a home they used to live in. Either way the same short list applies.
- Choose the property and be honest about the numbers: rent you can expect, taxes, insurance, repairs and the months it might sit empty.
- Learn the rules that apply to every rental: fair housing, lead paint disclosure for older homes, and your state's deposit and notice rules.
- Buy the right insurance. A standard homeowners policy usually does not cover a home that is rented out.
- Open separate records, ideally a separate bank account, before the first rent comes in.
- Write a lease that fits your state, and decide your screening rules before you take applications.
- Get the unit ready, take dated photos, and only then start showing it.
The order matters. People who find a tenant first and sort out insurance and records later tend to rebuild their paperwork after the fact, which is harder.
The rules you cannot skip
Federal fair housing law applies to almost every rental decision. 42 U.S. Code 3604 makes it unlawful to refuse to rent or to set different terms because of race, color, religion, sex, familial status or national origin. Many states and cities add more protected groups, so check yours.
If the home was built before 1978, the EPA says that before a renter signs you must give the renter the lead-based paint pamphlet, disclose any known lead hazards, share records you have, include the lead warning statement in the lease and keep a signed copy of the disclosures for three years. See the EPA page.
Everything else is local: how much deposit you can take, when you must return it, how much notice a rent increase needs, and whether the city wants a rental registration. Look up your state and city before you write the lease, not after.
Insurance before the first tenant
Progressive's landlord insurance page says that standard homeowners policies typically do not cover homes being rented out, and that landlord policies typically cover the building, liability, your own belongings at the property and lost rent when a covered event makes the home unlivable. Tenants' belongings are not covered; they need their own renters policy. Call your insurer or agent before the tenant moves in and tell them the home will be rented.
Records and taxes from day one
The IRS says rental income is generally reported on Schedule E, and that depreciation starts when the property is placed in service. That means the date you first make the unit available to rent is worth writing down. Keep every receipt, the closing statement and a log of what you spend, split by property if you own more than one.
Example a made-up owner collects $1,600 in rent in March and pays $140 for a plumber and $60 for a smoke alarm. With one account and a short note on each payment, March shows $1,600 in and $200 out in a minute. Mixed into a personal account, the same month takes an evening to rebuild at tax time.
How DoorKeeping handles it
DoorKeeping gives each property its own books: a ledger, a bank account feed and the deposits you hold. You can ask Claude or ChatGPT, for example, "What did I spend on the Maple Street house this month?" Leases are e-signed in DoorKeeping, and anything that touches money or a legal step waits for your approval. It costs $2 per unit per month with every feature included.
Tenants pay rent to your own bank account by bank transfer, free from DoorKeeping, and DoorKeeping marks rent paid when the deposit matches.
Sources
- 42 U.S. Code 3604, Discrimination in the sale or rental of housing, Cornell Law School, read Oct 30, 2026
- Real estate disclosure of lead-based paint, EPA, read Oct 30, 2026
- What is landlord insurance?, Progressive, read Oct 30, 2026
- Topic no. 414, Rental income and expenses, IRS, read Oct 30, 2026
Questions
- Do I need a license to be a landlord?
- In most places a person who rents out their own property does not need a state license, but some cities require a rental registration or inspection. Check with your city and state.
- Can I rent out the house I live in?
- Yes, usually. Tell your mortgage lender and your insurer first, because both may have rules for rented homes.
- What is the first thing a new landlord should do?
- Learn the fair housing rules and your state's deposit and notice rules, then insure the property before anyone moves in.