Rules for renting a house: what landlords need to know

Last updated 2026-07-24

What is a landlord and what is landlording?

A landlord is anyone who owns residential property and rents it to someone else in exchange for payment. You're a landlord whether you own a single-family house, a duplex, or an apartment building. Landlording is the act of managing that rental relationship: finding tenants, signing leases, collecting rent, handling repairs, and complying with housing laws. ^[1] The legal term for the landlord is "lessor," and the tenant is the "lessee." Most statutes and court cases use those words, but everyone else just says landlord and tenant. You don't need a business license or real estate license to become a landlord in most states. You just need to own (or control under a lease) the property and follow the rules. That said, many cities now require a separate rental license or registration before you can legally rent out a house, especially if you're an investor or absentee owner.

How to become a landlord

You become a landlord the moment you accept money from someone in exchange for the right to live in your property. That can happen by signing a formal lease or by a simple verbal agreement, though a verbal agreement is a terrible idea. Here's the practical checklist: 1. Make sure you're allowed to rent the property. Check your mortgage (many have an "owner-occupancy" clause for the first year), your HOA rules, and local zoning. Single-family homes in some neighborhoods are zoned residential-only and can't be rented without a variance. 2. Register or license the rental if your city requires it. Hundreds of U.S. cities now mandate rental registration, licensing, or inspection before you advertise or lease a unit. Fees range from $25 to over $300 per unit per year, and operating without the permit can cost you $500 to $1,000 per day in fines. ^[2] 3. Get landlord insurance. Your homeowner's policy doesn't cover tenant damage, lost rent, or liability for tenant injuries. A landlord policy (sometimes called "dwelling fire" or "DP-3") runs about $1,500 to $2,500 per year for a typical single-family rental. 4. Write a compliant lease. Every state has different rules about what a lease must say, what it can't say, and how security deposits work. You can buy a state-specific lease form or hire a local real estate attorney to draft one. 5. Screen tenants lawfully. You can check credit, income, rental history, and criminal background, but you have to do it the same way for every applicant. The Fair Housing Act forbids different standards based on race, religion, family status, national origin, disability, sex, or (in some states) source of income. ^[3] 6. Collect a security deposit (if your state allows it) and the first month's rent. Give the tenant a written receipt and a move-in checklist documenting the condition of the property. If your city offers a rental license or inspection prep packet, it's worth the money. RentalPermitPath sells an $79 one-time packet with your city's current rules, required forms, and a pre-inspection checklist. It's not required, but it keeps you from missing a step and getting hit with a surprise fine. You can also check our landlord basics guide for a full overview of getting started, or review your tenant rights obligations before signing your first lease.

How to be a landlord: ongoing responsibilities

Once you've rented the house, state law imposes three big ongoing duties: Habitability. You have to keep the property safe and livable. That means working heat, hot water, electricity, no leaks, no mold, no vermin, and no structural hazards. The exact list is in your state's landlord-tenant statute (often called the "implied warranty of habitability"). ^[4] If you don't fix a serious habitability problem within a reasonable time after notice, the tenant can withhold rent, repair-and-deduct, break the lease, or sue you for damages. Quiet enjoyment. You can't harass the tenant, show up unannounced, or interfere with their use of the property. Most states require 24 to 48 hours' written notice before you enter, except in emergencies. ^[5] No retaliation. If a tenant complains to the health department or withholds rent for a legitimate repair issue, you can't evict them, raise the rent, or cut off utilities in response. Retaliation is illegal in every state and can get you sued for actual damages plus penalties (in California, statutory damages are $2,000 per violation). ^[6] You also have to follow every term in your lease and every rule in your state's security deposit statute. That includes returning the deposit (minus lawful deductions) within 14 to 60 days after move-out, depending on your state, along with an itemized statement of any deductions. ^[7]

What rights do tenants have without a lease?

A tenant without a written lease still has a lease. It's just a month-to-month oral lease, and every protection in your state's landlord-tenant law still applies. That means: - You still owe them habitability (heat, water, no hazards).

• You still have to give proper notice to enter (usually 24 hours).
• You still have to follow the security deposit rules.
• You can't evict them without cause and proper notice. In most states, you have to give 30 days' written notice to end a month-to-month tenancy, and even then you have to go through formal eviction court if they don't leave. ^[2] The tenant also has to pay rent and follow all the other obligations of a lease, even if nothing is in writing. If they don't pay, you can evict them through the same court process you'd use with a written lease. The real risk of no written lease is proof. If you and the tenant disagree about what the rent was, who pays utilities, or whether pets were allowed, you have no documentation. That's why every landlord should use a written lease, even for a month-to-month tenancy. Our renters rights guide covers what protections tenants have even without formal paperwork.

Federal rules: the Fair Housing Act and ADA

The Fair Housing Act (FHA) is the single biggest federal rule you have to follow. It bans discrimination in housing based on race, color, religion, sex, national origin, familial status (having kids), and disability. ^[3] In practice, that means: - You can't refuse to rent to someone because they have children, even if you'd prefer "quiet" tenants.

• You can't ask about someone's immigration status or reject them for having an accent.
• You can't advertise "perfect for a single professional" or "no children."
• You have to make reasonable accommodations for tenants with disabilities, like allowing a service animal even if you have a no-pets policy, or letting a tenant install grab bars in the bathroom at their own expense. Violations can cost you. HUD can fine you up to $19,787 for a first offense, $49,467 for a second offense within five years, and $98,935 for three or more violations. ^[5] A tenant can also sue you in federal court for actual damages, emotional distress, and attorney's fees, and juries have awarded six-figure verdicts in clear discrimination cases. Some states add protected classes. California, New York, and about a dozen other states ban discrimination based on source of income, which means you generally can't refuse a tenant just because they pay rent with a Section 8 voucher. ^[8]

State rules: leases, deposits, and notice periods

Every state has a landlord-tenant statute (sometimes called a "residential tenancy act") that sets the basic rules for leases, security deposits, entry, and evictions. The rules vary a lot, but here are the common patterns: Written lease requirement. Most states require a written lease if the term is longer than one year (this comes from an old law called the "Statute of Frauds"). ^[1] Shorter leases can be oral, but again, you shouldn't do it. Security deposit caps. About 40 states cap security deposits at one to two months' rent. The median cap is 1.5 months. A few states (Illinois, Arizona) have no cap at all, but charging more than two months is rare and hard to justify. ^[7] Deposit return deadline. States give you anywhere from 14 days (Tennessee, Hawaii) to 60 days (California for tenancies over one year) to return the deposit after the tenant moves out. You have to send an itemized list of any deductions (cleaning, repairs, unpaid rent) or you forfeit your right to keep any of it. Some states (California, Kentucky, Maryland) impose penalties if you miss the deadline or withhold the deposit in bad faith: two or three times the deposit amount. ^{[6] [7]} Notice to enter. Most states require 24 hours' notice before you or a contractor enter the rental, except in emergencies (fire, flood, gas leak). A few states (like Pennsylvania) have no statutory notice rule, but courts have recognized the tenant's right to "quiet enjoyment," which means you still can't barge in unannounced. ^[5] Notice to terminate. To end a month-to-month tenancy, you typically have to give 30 days' written notice. A few states require 60 or even 90 days if the tenant has lived there for more than a year (California is 60 days). ^[2] For a fixed-term lease, you usually don't have to give any notice; the lease just expires. But if you want to not renew, some states require notice 30 to 60 days before the end of the term, or the lease automatically converts to month-to-month. You can find your state's full statute on your state legislature's website (search "[state] landlord tenant act" or "[state] residential tenancies").

Local rules: rental registration, licensing, and inspections

Hundreds of U.S. cities now require landlords to register or license rental properties before they can legally rent them out. This is separate from your business license or any state requirements. Cities that require rental licensing or registration include: - California: Los Angeles, San Diego, Sacramento, Long Beach, Oakland, San Jose, Fresno, and about 60 others.

• Illinois: Chicago and nearly every suburb in Cook County.
• New York: All of New York City (certificate of registration or multiple dwelling registration), plus Ithaca, Binghamton, and others.
• Ohio: Cleveland, Columbus, Cincinnati, Toledo, Akron.
• Pennsylvania: Philadelphia, Pittsburgh, Allentown, Reading, Erie.
• Minnesota: Minneapolis, St. Paul, Duluth, Rochester.
• Maryland: Baltimore, Montgomery County, Prince George's County. Fees range from $25 to $350 per unit per year. Some cities charge a flat fee; others tier it by the number of units or inspection results. Chicago charges $60 per unit per two years. Los Angeles charges $43.32 per unit per year for buildings with two or more units. ^[2] Most programs also require an initial inspection and periodic re-inspections (every one to three years). The inspector checks for code violations: smoke detectors, carbon monoxide alarms, GFCIs in kitchens and baths, handrails, egress windows in bedrooms, proper ventilation, no peeling paint (lead hazard), and so on. If you fail, you get a re-inspection deadline (usually 30 days) and a re-inspection fee ($50 to $150). Operating without a license can cost you $500 to $1,000 per day in fines, and in some cities you can't evict a tenant or collect rent until you're licensed. ^[2] You can look up your city's program by searching "[city name] rental property registration" or calling your city's housing or building department. Our rental permit requirements page walks through the process city by city.

How much notice does a landlord have to give?

The notice period depends on what you're doing: Entering the property. Most states require 24 hours' written notice, though a few allow oral notice or require 48 hours. The notice has to state the reason (inspection, repair, showing the unit) and the approximate time. ^[5] Ending a month-to-month tenancy. Typically 30 days' written notice. California requires 60 days if the tenant has lived there more than a year. New Jersey has no set rule but courts generally expect 30 days. Vermont requires 60 days. ^[2] Not renewing a fixed-term lease. Some states require 30 to 60 days' notice before the lease expires, or the lease automatically renews or converts to month-to-month. Other states say the lease just ends on the expiration date with no notice required. Check your state statute and your lease (many leases require notice even if state law doesn't). Raising the rent. For month-to-month tenancies, most states require 30 days' written notice. Rent-controlled cities (San Francisco, New York, Los Angeles, Oakland) have separate rules about how much you can raise rent and when. Evicting for cause. If the tenant doesn't pay rent, you typically have to give a "pay or quit" notice (three to five days in most states). If they violate the lease (unauthorized pet, damage, nuisance), you give a "cure or quit" notice (usually 10 to 30 days). If they still don't comply, you file an eviction lawsuit (called "unlawful detainer" or "summary possession"). You can't just lock them out or shut off utilities; that's illegal "self-help" eviction and it will get you sued. ^[2]

What can a landlord look at during an inspection?

You can inspect anything that affects the safety or condition of the property. That means: - Smoke detectors, carbon monoxide detectors, fire extinguishers.

• Plumbing (leaks, drips, running toilets).
• HVAC filters and operation.
• Appliances (stove, fridge, dishwasher, washer/dryer if you provide them).
• Walls, floors, and ceilings for damage or signs of leaks.
• Windows and doors (operation, locks, weatherstripping).
• Pest evidence (droppings, nests, damage).
• Unauthorized alterations (painted walls if your lease forbids it, holes, removed fixtures).
• Lease violations (unauthorized occupants, pets, smoking if the lease says no smoking). You can't search the tenant's personal belongings (drawers, closets, boxes) unless you have a specific reason to believe there's a lease violation or safety hazard (like a gas smell or evidence of drug manufacturing). You also can't take photos of personal items or snoop through mail, documents, or electronics. You should document the inspection with photos or a checklist, especially if you see damage or a lease violation. Send the tenant a written summary within a few days. If you find a serious problem (mold, a broken heater in winter, a roof leak), you have to fix it promptly, even if the tenant caused it (you can charge them for it later if the lease allows). Some states require a formal move-in inspection and a move-out inspection with the tenant present. California requires landlords to offer a pre-move-out inspection two weeks before the lease ends, so the tenant has a chance to fix any problems before you deduct from the deposit.

Who is responsible for the rental property walk-through inspection in California?

In California, the landlord is responsible for offering a pre-move-out inspection (also called an "initial inspection") no earlier than two weeks before the lease ends. You have to notify the tenant in writing of their right to request this inspection, and if they request it, you have to schedule it and give them 48 hours' notice of the date and time. During the inspection, you walk through the property with the tenant (or without them if they choose not to attend) and identify any damage or cleaning issues that you might deduct from the security deposit. You give the tenant a written list of those items, and the tenant then has until move-out to fix them and avoid the deduction. The law says you "shall" offer this inspection, which means it's mandatory, not optional. If you don't offer it, you don't lose your right to deduct from the deposit, but the tenant can argue in small claims court that you acted in bad faith, which could cost you up to twice the deposit amount in penalties. ^[6] The final move-out inspection (after the tenant is completely out and has returned the keys) is also the landlord's responsibility. You have 21 days from that date to return the deposit or send an itemized statement of deductions. ^[7] If you don't, the tenant can sue you for the full deposit plus up to twice the deposit amount in bad-faith penalties.

Why do landlords require renters insurance?

Landlords require renters insurance (also called "tenant insurance" or HO-4 coverage) because your landlord insurance policy doesn't cover the tenant's belongings or liability for injuries the tenant causes. If the tenant's candle starts a fire, your policy will pay to rebuild the house but won't replace the tenant's furniture, clothes, or laptop. If the tenant's guest slips on the tenant's rug and breaks an arm, your policy won't cover the medical bills or lawsuit. The tenant would be personally liable, and if they don't have insurance, they're judgment-proof (broke) or they'll drag you into the lawsuit claiming the injury was your fault (bad stair, loose railing, etc.). A typical renters insurance policy costs $15 to $30 per month and includes $20,000 to $50,000 in personal property coverage, $100,000 in liability coverage, and loss-of-use coverage (hotel costs if the unit becomes uninhabitable). Many policies also cover the tenant's security deposit deductible if they accidentally cause damage. About 60% of landlords now require renters insurance in the lease. It's legal in every state, and courts have upheld it as a reasonable lease term. You can require a minimum liability amount (most landlords ask for $100,000) and ask to be named as an "interested party" on the policy, which means the insurance company will notify you if the policy is canceled.

What a landlord cannot do in Ohio

Ohio is a landlord-friendly state with relatively weak tenant protections compared to California or New York, but landlords still can't do the following: Lock out the tenant or shut off utilities. Even if the tenant owes rent, you have to evict them through court. Self-help eviction is illegal, and the tenant can sue you for actual damages plus attorney's fees. Retaliate for a complaint. If the tenant reports a code violation to the health department or withholds rent for a legitimate repair issue, you can't evict them or raise the rent in response for at least 90 days. Ohio Revised Code § 5321.02 bans retaliation. Keep the security deposit without an itemized statement. You have 30 days after the tenant moves out to return the deposit or send a written list of damages with receipts or estimates. If you don't, you forfeit your right to keep any of it. Ohio Rev. Code § 5321.16. Discriminate under the Fair Housing Act. You can't refuse to rent to someone because of race, religion, family status, disability, or any other protected class. Ohio also bans discrimination based on ancestry and military status. Waive the tenant's rights in the lease. You can't include a clause that says "tenant waives the right to a habitable dwelling" or "landlord is not responsible for repairs." Those clauses are void under Ohio law. Charge excessive late fees. Ohio has no statutory cap, but courts have struck down late fees that are clearly punitive (like $50 per day). A reasonable late fee is 5% to 10% of the monthly rent. Enter without notice for non-emergencies. Ohio has no specific statute on entry notice, but courts recognize the tenant's right to quiet enjoyment, which means you should give at least 24 hours' notice except in emergencies. ^[5]

What happens if you violate the rules?

The consequences depend on which rule you break and how badly: Fair Housing Act violation. HUD can fine you up to $98,935 for multiple offenses, and the tenant can sue you in federal court for actual damages, emotional distress, punitive damages, and attorney's fees. Defense costs alone can run $50,000 to $100,000 even if you win. ^[5] Security deposit violation. Most states let the tenant sue you for two to three times the wrongfully withheld amount plus attorney's fees. In California, that's up to twice the deposit plus $600 statutory damages. ^{[6] [7]} Habitability violation. If you don't fix a serious problem (no heat in winter, sewage backup, mold), the tenant can withhold rent, repair-and-deduct (hire someone to fix it and deduct the cost from rent), break the lease and move out, or sue you for damages (cost of a hotel, medical bills, property damage). In extreme cases (like a tenant getting sick from mold), juries have awarded tens of thousands. Retaliation. The tenant can sue for actual damages (moving costs, rent differential, emotional distress) plus statutory penalties. California awards up to $2,000 per violation. ^[6] Illegal eviction (lockout or utility shut-off). The tenant can sue for actual damages, get a court order forcing you to let them back in, and recover attorney's fees. Some states (like New York) also impose criminal penalties: up to $1,000 fine and 30 days in jail for illegal lockout. ^[2] Operating without a rental license. Fines range from $250 to $1,000 per violation, and some cities treat each day as a separate violation. In Chicago, you can't evict a tenant or collect rent if your building isn't properly registered, and the tenant can withhold rent until you comply. ^[2] If you're not sure whether something you want to do is legal, talk to a local landlord-tenant attorney before you do it. An hour of advice ($250 to $400) is cheaper than a lawsuit.

Frequently asked questions

Do I need a real estate license to be a landlord?

No. You don't need any license to rent out property you own. A real estate license is only required if you're managing property for someone else in exchange for a fee (that's property management, which is regulated separately). You may need a city rental registration or license, but that's different from a real estate license.

Can I rent out a house with a mortgage?

Usually yes, but check your mortgage documents. Some loans (especially FHA and first-time buyer programs) require you to live in the property as your primary residence for at least one year. Converting it to a rental before that period ends can trigger an acceleration clause, meaning the bank can demand immediate repayment of the full loan balance.

How do I set the rent amount?

Look at comparable rentals in your neighborhood (same size, same condition, same amenities) and price yours within 5% to 10% of the median. Zillow, Apartments.com, and Craigslist are decent starting points. You can charge whatever the market will bear, except in rent-controlled cities (San Francisco, New York, Los Angeles, Oakland, and a few others) where annual increases are capped.

What if the tenant stops paying rent?

You have to evict them through court. Start by giving a pay-or-quit notice (three to five days in most states). If they don't pay, file an unlawful detainer lawsuit in your county's housing or municipal court. The process takes 30 to 90 days depending on the state and how backlogged the court is. You cannot lock them out or shut off utilities; that's illegal and will get you sued.

Can I refuse to rent to someone with bad credit?

Yes, as long as you apply the same credit standard to every applicant. It's legal to require a minimum credit score, verify income (most landlords want rent to be no more than 30% of gross monthly income), and reject applicants who have recent evictions or unpaid judgments. Just document your criteria and apply them consistently.

Can I ban pets?

Yes, except you have to allow service animals and emotional support animals as a reasonable accommodation for tenants with disabilities under the Fair Housing Act. You can require documentation (a letter from a doctor or therapist for an ESA, training certification for a service animal), but you can't charge a pet deposit or pet rent for assistance animals.

How often can I raise the rent?

Once per year is the norm for month-to-month leases and lease renewals. You have to give 30 days' written notice in most states (60 days in California if the increase is more than 10%). Rent-controlled cities cap annual increases at 3% to 8% depending on inflation. During a fixed-term lease, you can't raise the rent unless the lease specifically allows it.

What repairs am I required to make?

Anything that affects habitability: heat, hot water, electricity, plumbing, roof leaks, broken windows, mold, pest infestations, and structural hazards. You also have to maintain appliances you provide (stove, fridge, dishwasher) and ensure smoke detectors and carbon monoxide detectors are working. Cosmetic issues (chipped paint, worn carpet) generally aren't required unless they're a health hazard.

Can I show the property to prospective tenants before the current lease ends?

Yes, but you have to give the current tenant proper notice (24 to 48 hours in most states) and schedule showings at reasonable times (not late at night or early morning). The tenant can't unreasonably refuse, but they can ask you to limit showings to certain days or times. Some leases allow you to show the property in the last 30 days of the term.

What if the tenant damages the property?

Document it with photos and repair estimates. If the damage is beyond normal wear and tear, you can deduct the repair cost from the security deposit. You have to send an itemized statement within 14 to 60 days (depending on your state) with receipts or invoices. If the damage exceeds the deposit, you can sue the tenant in small claims court for the balance.

Do I have to allow Section 8 tenants?

It depends on your state. California, Connecticut, Colorado, Delaware, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, North Dakota, Oklahoma, Oregon, Utah, Vermont, Virginia, Washington, and Wisconsin all ban "source of income" discrimination, which means you can't refuse a tenant just because they pay with a housing voucher. Other states allow you to decline Section 8 tenants.

Can I require the tenant to pay for utilities?

Yes, as long as the lease clearly states which utilities the tenant pays and which you pay. Most single-family rentals have the tenant pay all utilities (electric, gas, water, trash, internet). In multi-family buildings where utilities aren't separately metered, the landlord usually pays and includes the cost in the rent. You can't shut off utilities as punishment for nonpayment of rent.

What is normal wear and tear?

Normal wear and tear is deterioration that happens from ordinary use over time, like faded paint, worn carpet in high-traffic areas, small nail holes from hanging pictures, or scuffed floors. You can't deduct from the security deposit for normal wear and tear. Damage is different: large holes in walls, burns, broken fixtures, stains, pet damage, or anything that requires repair beyond routine maintenance.

Can I evict a tenant for having guests?

Only if the guest stays long enough to become an unauthorized occupant (usually more than 14 consecutive days or 30 days total in a year) and you have a lease clause limiting occupancy. You can't evict someone for having occasional overnight guests or visitors. If a guest moves in and isn't on the lease, you can give a cure-or-quit notice requiring the tenant to remove the guest or face eviction.

Sources

1. Cornell Legal Information Institute, Landlord-Tenant Law: Definition of landlord/lessor and tenant/lessee; Statute of Frauds requirement for leases over one year
2. U.S. Department of Housing and Urban Development, Fair Housing Act: Protected classes under the Fair Housing Act: race, color, religion, sex, national origin, familial status, disability
3. National Multifamily Housing Council, Implied Warranty of Habitability: State habitability requirements: heat, hot water, structural safety, pest control
4. Nolo, State Laws on Landlord's Right to Enter Rental Property: 24-hour notice requirement in most states; emergency exception
5. California Civil Code § 1950.5: California security deposit return deadline (21 days); bad-faith penalty of up to twice the deposit
6. Nolo, State Security Deposit Limits and Deadlines: State-by-state security deposit caps (1-2 months' rent typical) and return deadlines (14-60 days)
7. Legal Aid Society, State Laws on Terminating Tenancies: 30-day notice requirement to terminate month-to-month tenancies in most states; 60-day requirement in some states for long-term tenants
8. Ohio Revised Code, Chapter 5321 Landlords and Tenants: Ohio security deposit return deadline (30 days), retaliation ban (90 days), and prohibition on self-help eviction