Whether you plan to self-manage your rental or hire a professional property management service, it’s essential to navigate the process with clarity and confidence. Below are key steps to help ensure a seamless and profitable rental experience.

Consult with a CPA

Before becoming a landlord, speak with your Certified Public Accountant (CPA) to fully understand the tax implications of rental income. Proper financial planning will help you maximize deductions and remain compliant with IRS regulations.

Understand Landlord-Tenant Laws

Familiarizing yourself with Texas property laws is crucial to maintaining compliance and protecting your investment. Key regulations include:

·         Required security features—non-keyed locking devices, peepholes (including the garage door), smoke detectors, etc.

·         Tenant rights & responsibilities—outlined under Texas Property Code §§ 91 & 92.

·         Additionally, verify your Owner’s Association (HOA) rules and deed restrictions to confirm leasing eligibility. Some communities prohibit or limit short-term rentals (Airbnb, VRBO, etc.)—so be sure to check before listing your property.

Need guidance on property improvements? Consult your EC Real Estate Group for expert recommendations!

Insurance Considerations

Insuring a rental property differs from a homeowner’s policy. It’s essential to have landlord insurance, which typically covers:

·         Property damage

·         Liability protection

·         Loss of rental income

Additionally, require tenants to carry renter’s insurance and submit a declaration page as proof of coverage. Your insurance agent can provide the best policy options—or ask us for a trusted referral!

Set the Right Rental Price (CMA Report)

Your Realtor® will conduct a Comparative Market Analysis (CMA) to determine the most competitive rental rate based on:

·         Current market trends

·         Comparable properties

·         Location and amenities

Proper pricing helps prevent overpricing (which leads to extended vacancies) or underpricing (which reduces your ROI).

Prepare Your Home for the Market

Before listing, ensure your property is move-in ready with:

·         Serviced major systems (HVAC, plumbing, electrical, etc.)

·         Professional cleaning

·         High-quality listing photos

Additionally, discuss key policies with your Realtor®, such as:

·          Pet policy – Will you allow pets? If so, which breeds, how many, and under what terms?

·         ESA & Service Animals – Federal law prohibits charging deposits or pet rent for Emotional Support Animals (ESA) and Service Animals (SA).

Finding the Right Tenant

Your Realtor® will screen potential tenants by conducting:

·         Credit and background checks

·         Employment verification

·         Rental history review (No evictions, unpaid balances, or issues with previous landlords)

A strong candidate should have a combined household income of at least 3X the monthly rent. Ultimately, the final selection is your decision—your Realtor® will guide you in choosing the best fit.

Build a Trusted Maintenance Referral List

Whether you self-manage or hire a third-party property manager, having reliable service professionals on hand is essential. Keep a vetted list of specialists for:

·         HVAC repairs

·         Roofing

·         Plumbing

·         Pool maintenance

·         Foundation issues

·         Electrical work

Need a trusted vendor? Ask us for referrals to our preferred service providers.

If you ever decide to sell your property, our team at EC Real Estate Group is here to guide you through a smooth, profitable sale. Contact your Realtor® today for a consultation on maximizing your return on investment.