Published by REALTOR.com | June 17, 2025
Want to become a landlord? With rents rising, becoming the one collecting those checks could be a smart investment move.
In today’s housing market, rents are on the rise, and many people hoping to keep their living expenses affordable are opting to rent over buy.
Given the trend, you maybe wondering whether it’s time to consider becoming a landlord. Maybe you have a spare room to rent out or better still, you’re in the position to buy a rental property.
While the idea of raking in rent checks from tenants every month might sound nice, being a landlord isn’t a cakewalk; it takes work, and sometimes being a landlord may seem like you’re shelling out more than you’re bringing in from rent.
It’s best to know what you’re getting into before you start down this path, so here are some tips on becoming a landlord who not only makes money from rent but also keeps tenants happy.
Can you afford to become a landlord?
Renting out real estate on which you’re paying a mortgage is a balancing act. To be a successful landlord, you have to make sure that the money coming in from rent covers what goes out—or else you’re operating at a loss on your real estate.
Prepare for the worst: Since your rental property may sit vacant occasionally or require repairs, having a decent financial cushion is a smart move. Most real estate experts say that properties should be able to rake in enough rent in 10 months to cover your yearly costs.
Pick the right kind of property
Many components go into rental property selection, so make sure you identify your primary goal as a landlord, says Ed Laine, partner/broker of Miller Laine Properties, in the Seattle area.
“Is it good cash flow that you’re looking for, or do you just want something that’s low maintenance?” he asks. All other things being equal, you will want to choose a rental property close to your home, which allows you to check on tenants and house maintenance easily, to maximize your rental income.
As a landlord, Laine recommends asking yourself, “If the wind blew a tree limb through my tenant’s window at 2 a.m., how far would I be willing to drive to deal with it?”
You’ll also want to make sure the rental property meets all applicable codes. This handy rental property checklist helps you to assess your real estate with a critical eye to make sure it’s “rent-worthy” for tenants and—later on—helps you to double-check the property once your renter leaves to make sure it was left in the condition in which it was found.
Having good tenants can make or break your experience as a landlord, Laine notes. Make sure to interview and screen tenants thoroughly before offering them a lease.
Tenant screening companies make that easy, but there are some steps you can take yourself to prevent the need for eviction later. First, ask prospective tenants to agree for you to check their credit before signing a lease: Section 604 of the Fair Credit Reporting Act requires that landlords ask permission before running a credit check on renters. You can also check your state and county’s website, since most court information about renters is public record.
Last but not least, you will want tenants to sign a lease delineating the rent, when it’s due, and actions that could lead to late fees and eviction.
