Renting out a property can be exciting – and a bit nerve-wracking – if you’re doing it for the first time. Whether you’re in the U.S. or Canada, there are common pitfalls to avoid. Start by doing your homework: know your local landlord-tenant laws, prepare a solid rental agreement, and budget for maintenance. These 10 easy-to-follow tips cover everything from legal basics to tenant screening and property management. By following this rental property advice, new landlords can stay organized, protect their investment, and create a positive rental experience (and maybe even earn a little extra income)!
1. Understand Landlord-Tenant Laws in Your Area
Every state, province or territory has its own rules for landlords. In Canada, “each province and territory has its own residential tenancy act” defining landlord and tenant rights . In the U.S., federal laws (like the Fair Housing Act) and your state’s landlord-tenant statutes apply. For example, the Fair Housing Act bans discrimination against tenants based on race, religion, family status, disability, etc. , and the Americans with Disabilities Act requires reasonable accommodations for disabled renters. Bottom line: Learn the key rules in your jurisdiction – notice requirements, eviction procedures, rent increase limits, deposit rules, and safety standards – so you can comply and avoid legal trouble.
2. Screen Tenants Carefully
Finding reliable tenants is one of the most important “landlord tips” for success. Thoroughly vet applicants by checking references, income, and credit. In Canada, landlords can ask for references (like a past landlord or employer), proof of income, and even do a credit check . In the U.S., you can use tenant screening services or credit reports (just be careful to follow Fair Housing guidelines!). Create a consistent screening process – require the same documents from everyone – to avoid accusations of unfairness or bias. Good screening reduces the risk of late payments and property damage, and helps keep your rental running smoothly.
3. Create a Solid Lease Agreement
Always put your agreement in writing. A clear written lease (rather than a handshake deal) protects both you and the tenant. It should spell out the rent amount, lease term, what utilities or furnishings are included, and rules (pets, maintenance duties, subletting, etc.). As Canada’s housing experts note, a written lease “clearly specifies what a landlord and tenant are agreeing to when renting a property” . If a dispute arises, a lease lets everyone refer back to the agreed rules. Many online tools (including RentMouse.com) offer customizable lease templates with e-signature support, making it easy to include all key terms and have both parties sign securely. Keep copies of the signed lease in your records.
4. Set Rent Wisely
Research similar rentals in your neighborhood to set a competitive price. If your rent is too high, you may have trouble finding tenants; too low, and you leave money on the table. Check rental listings, vacancy rates, and sites like Rentometer to see what the local market will bear. Factor in your costs (mortgage, taxes, insurance, expected maintenance) when choosing a rent that’s fair yet covers expenses. Be transparent in your listing, and consider offering a small discount for the first month or including a utility to make your unit more attractive. A well-priced property often rents faster to better tenants.
5. Budget for Repairs and Maintenance
Treat your rental like a business and set aside funds for upkeep. Landlords are generally expected to keep the property safe and in good condition . Plan for routine maintenance (cleaning, lawn care, HVAC servicing) and unexpected repairs (broken furnace, plumbing leaks). A common rule of thumb is to save 1–2% of the property’s value each year for maintenance, or roughly 50% of rent for all expenses combined. Regularly check smoke detectors, locks, and appliances to prevent small issues from becoming costly. Promptly address tenant repair requests — not only is it the law in many places, but a well-maintained property attracts happy tenants and can justify charging higher rent.
6. Get the Right Insurance
Don’t rely on standard home insurance – buy landlord insurance. This specialized policy typically covers property damage (from fire, floods, vandalism) and liability (if a tenant or visitor is injured on your rental). It may also cover lost rental income if the unit becomes unlivable after a covered event. Even if a province or state doesn’t require it, landlord insurance gives you peace of mind. Compare quotes (some major insurers and banks offer landlord coverage in both the US and Canada) to find a policy that fits your type of property and location. Proper insurance ensures that one accident or natural disaster doesn’t wipe out your rental investment.
7. Keep Detailed Records
Stay organized by tracking every dollar and document. Keep copies of the lease, any addendums, rent receipts, maintenance invoices, and correspondence with your tenant. In fact, after each rent payment it’s best practice to provide the tenant with a receipt and file a copy for your records . Use accounting software or a spreadsheet to record rent payments and expenses. Save receipts for repairs and upgrades (these may be tax-deductible), and note the dates and details. Good record-keeping makes taxes easier, helps you spot trends (like rising repair costs), and provides evidence if a dispute ever goes to small claims court.
8. Handle Security Deposits Properly
Follow the rules for deposits in your area. In many provinces and states, landlords can charge a deposit (or first and last month’s rent) to cover damage or unpaid rent, but there are limits and rules. For instance, you usually cannot keep the deposit for normal “wear and tear” on paint or carpets . Read your local regulations: some places require you to pay interest on the deposit or keep it in a separate account. When the lease ends, inspect the unit with the tenant (taking photos if possible) and provide an itemized list of any deductions. Return any remaining deposit promptly and in writing, per the legal timeline. Clear deposit practices build trust and avoid deposit-related disputes.
9. Communicate Clearly and Professionally
Good communication goes a long way. From Day 1, be clear about how and when you can be contacted (email, phone, landlord portal, etc.) and stick to it. Lay out rules in writing – for example, send formal notices for rent increases or lease renewals rather than verbal reminders. In fact, it’s wise to familiarize yourself with notice requirements: there are laws governing how landlord and tenant notices (like payment reminders or eviction notices) must be written and delivered to prevent misunderstandings . Responding quickly to tenant messages or maintenance requests shows professionalism and can prevent small issues from escalating. Friendly, respectful communication helps tenants feel comfortable reporting problems early – which can save you money and headaches later.
10. Use Tech Tools and Seek Help When Needed
You don’t have to manage rentals the hard way. Consider using modern property-management software to streamline tasks. For example, RentMouse.com offers an all-in-one platform where you can post listings, screen tenants, sign digital leases, collect rent online, track expenses, and handle maintenance requests – all in one place. These tools automate routine work (sending rent reminders, for instance) so you can focus on the big picture. If managing feels overwhelming, you might also hire a professional property manager or virtual assistant for day-to-day help. Above all, remember there are landlord communities and resources (online forums, local landlord associations, and government housing agencies) ready to answer questions. Ready to simplify renting? List or manage your property with RentMouse.com to take advantage of easy listings and digital leasing – making the landlord experience smoother for you and your tenants.
Sources
Canada Mortgage and Housing Corporation (CMHC) – Renting Your Property: Landlord and Tenant Responsibilities.
U.S. Department of Housing and Urban Development (HUD) – Fair Housing Act Overview.
Government of Canada – Rights and Responsibilities of Landlords and Tenants.
https://www.canada.ca/en/services/finance/manage/housing.html
Canada Mortgage and Housing Corporation (CMHC) – Leases and Rental Agreements in Canada.
Ontario Landlord and Tenant Board (LTB) – Maintenance Obligations and Repair Requirements.
Insurance Bureau of Canada (IBC) – Landlord Insurance Coverage Explained.
U.S. Small Business Administration (SBA) – Record-Keeping for Small Landlords.
Government of Alberta – Residential Tenancies Act (RSA 2000, c R-17).
Government of British Columbia – Residential Tenancy Branch: Serving Documents and Notices.
