5 Things Every First-Time Landlord Should Know Before Buying a Rental Property

Mar 11

So, you're thinking about buying your first rental property? That's a big move—and a smart one if you play it right. But before you dive in, let’s hit pause and cover a few essentials that could save you some serious stress (and cash). Consider this your friendly, no-fluff guide to getting started.

1. Know Your Rental Market

Before you buy, research the local rental market. This includes knowing the average rent prices, popular neighborhood amenities, and your ideal tenant profile.

Search rental listings on sites like Zillow, Rentometer, or Zumper to get a sense of what properties rent for in the area.
Look into amenities such as proximity to schools, public transportation, shopping centers, or parks.
Consider your target demographic: Are you near a college town (student renters)? Is it a family-friendly suburb (long-term tenants)?

Understanding your rental market helps you make informed decisions about pricing, marketing, and property features.

2. Account for ALL Expenses

It’s not just the mortgage payment you need to worry about. Many first-time landlords underestimate the total cost of owning a rental.

Property taxes and insurance can vary widely.
City-specific landlord fees or rental property certifications may be required.
Maintenance and repairs should be budgeted at around 1-2% of the property value annually.
Don’t forget about property management fees if you won’t be managing the property yourself.

Use a rental property calculator or create a spreadsheet to tally up all potential costs and ensure positive cash flow. Rental Care Co. is working on templates and tools to help simplify your planning.

3. Price for Your Ideal Tenant

Setting the right rent isn't just about covering your costs; it's about attracting and keeping your ideal tenant.

Compare rents for similar properties in the same neighborhood.
Consider what amenities or features justify a higher price (e.g., in-unit laundry, fenced yard, smart home tech).
Make sure the rent you charge aligns with your tenant pool’s income range and expectations.

4. Understand Seasonality in Rentals

Timing still matters when listing a rental, but the good news is that today’s strong rental demand means you can often find tenants year-round. That said, rental demand does fluctuate with the seasons:

Spring and summer remain the busiest times for tenant turnover and moves.
Mid-school year or during the holidays, it may take a bit longer to fill a vacancy.

If you’re listing during a slower season, consider offering move-in incentives or flexible lease terms to attract renters more quickly.

5. Learn Local Landlord Regulations

Every city or state has different rules for landlords. Before buying, familiarize yourself with the local laws and requirements.

Are rental licenses or inspections required?
What are the tenant rights and eviction laws?
Do you need to register the property with the city?

Final Thoughts: Buying your first rental property is more than just a financial decision—it’s the start of building a business and becoming part of a community. The most successful landlords plan ahead, know their market, and pay attention to the details that make tenants feel at home.

At Rental Care Co., we’re here to help landlords do exactly that. Our goal is simple: give you practical tools, helpful templates, and thoughtful resources that make it easier to be a landlord tenants want to stay with, resulting in fewer vacancies and a stronger bottom line for you.

Krystle Lilliestierna