Introduction to Renting Out Your Property
When we decided to rent my property in Burien, WA, we discovered an incredible opportunity to generate passive income while maintaining our real estate investment. The rental market in Burien continues to show strong demand, making it an ideal time for property owners to consider becoming landlords. In this comprehensive guide, we'll share everything we've learned about how to rent out your house successfully, from preparation and pricing to tenant screening and ongoing management.
Should You Rent or Sell Your Property? Pros and Cons
When faced with the decision to rent my property vs sell, we carefully weighed several factors specific to the Burien market. After thorough research, we concluded that renting offered significant advantages for our situation.
Pros of Renting Your Property:
- Steady Income Stream: We enjoy reliable monthly cash flow that helps cover our mortgage and provides additional income.
- Property Appreciation: While generating rental income, our property continues to appreciate in value in the growing Burien market.
- Tax Benefits: We can deduct expenses like mortgage interest, property taxes, insurance, maintenance, and depreciation.
- Equity Building: Our tenants essentially help pay down our mortgage, building our equity over time.
- Portfolio Diversification: Rental property adds diversity to our investment portfolio beyond stocks and bonds.
- Future Flexibility: We maintain the option to move back in or sell when market conditions are more favorable.
Cons of Renting Your Property:
- Landlord Responsibilities: We must be available to address tenant concerns and property issues.
- Maintenance Costs: Unexpected repairs and regular upkeep require financial reserves.
- Potential Tenant Problems: Even with thorough screening, difficult tenants can create stress and financial loss.
- Vacancy Periods: We must budget for times when the property might sit empty between tenants.
- Regulatory Compliance: We need to stay current with Burien's landlord-tenant laws and regulations.
- Capital Gains Consideration: If we sell later, we may face higher capital gains taxes compared to selling our primary residence.
When comparing short-term versus long-term rentals, we found that long-term leases in Burien provided more stability and required less intensive management.
Step 1: Preparing Your Property for Rental
Before we could rent my property in Burien, we needed to ensure it was in optimal condition to attract quality tenants and command the best possible rental price. Here's our step-by-step preparation process:
- Comprehensive Property Assessment
- We conducted a thorough inspection of all structural elements, including the roof, foundation, and exterior walls.
- We tested all major systems (electrical, plumbing, HVAC) to identify any potential issues.
- Strategic Repairs and Renovations
- We prioritized repairs that affected safety and functionality first.
- We refreshed the property with neutral paint colors to appeal to a broader range of tenants.
- Code Compliance and Safety Updates
- We verified compliance with Burien's specific building codes and zoning regulations.
- We installed smoke detectors, carbon monoxide detectors, and fire extinguishers as required by Washington state law.
- Enhancing Curb Appeal
- We improved landscaping with low-maintenance plants native to the Pacific Northwest.
- We upgraded exterior lighting for safety and aesthetic appeal.
- Energy-Efficient Upgrades
- We installed programmable thermostats to reduce utility costs.
- We upgraded to water-efficient fixtures to reduce water bills.
- Insurance and Legal Preparation
- We updated our homeowner's policy to a landlord policy with appropriate coverage.
- We prepared a comprehensive lease agreement that complied with Washington state law.
By investing in these prepare house to rent steps upfront, we significantly reduced maintenance calls after tenants moved in and were able to command a premium rental price in the Burien market.
Step 2: Setting a Competitive Rental Price
Determining how much to rent my property for in Burien required careful market analysis and consideration of multiple factors. We wanted to maximize our return without overpricing and risking extended vacancy periods.
First, we utilized online tools like Zillow's Rent Zestimate, Rentometer, and Apartments.com to establish a baseline. While these tools offered helpful starting figures, we recognized they weren't always accurate for specific neighborhoods in Burien.
Next, we conducted our own comparative market analysis by identifying similar properties for rent in our area. We focused on listings with comparable:
- Location: Properties within a 1-mile radius in similar Burien neighborhoods
- Size: Similar square footage, number of bedrooms and bathrooms
- Age and Condition: Properties of similar vintage and renovation status
- Amenities: Similar features like parking, outdoor space, and appliance packages
We discovered that properties with energy-efficient features commanded approximately 5% higher rent in the Burien market, which justified our earlier investments in those upgrades.
To avoid underpricing, we calculated our total monthly carrying costs, including:
- Mortgage payment
- Property taxes (which are relatively high in King County)
- Insurance
- Estimated maintenance (we budgeted 1% of the property value annually)
- HOA fees (if applicable)
- Property management fees (if using a service)
For example, when we initially listed our 3-bedroom home at $2,400/month (slightly above market average), we received minimal interest. After adjusting to $2,250/month, we quickly received multiple applications from qualified tenants.
Step 3: Listing and Marketing Your Property Effectively
When it came time to list my rental property in Burien, we developed a comprehensive marketing strategy to attract high-quality tenants quickly. Here's our process:
- Creating Compelling Property Descriptions
- We crafted headlines that highlighted our property's most desirable features, such as "Spacious 3BR Home with Private Backyard in Heart of Burien"
- We wrote detailed descriptions emphasizing unique selling points like proximity to Burien Town Square, renovated kitchen, and energy-efficient appliances
- Capturing Professional-Quality Photography
- We scheduled photo sessions during daylight hours when natural light was optimal
- We thoroughly cleaned and staged each room before photographing
- We created a virtual tour using the Matterport app, which significantly increased prospect engagement
- Selecting the Right Listing Platforms
- We listed on major rental sites including Zillow (which syndicates to Trulia and HotPads), Apartments.com, and Redfin
- We posted on Burien-specific Facebook groups and Nextdoor neighborhoods, which yielded several qualified local applicants
- Hosting Effective Showings
- We scheduled both private showings and open houses on weekends
- We prepared an information packet with property details, rental terms, and application process
One strategy that proved particularly effective was creating a short video walkthrough tour that we could send to interested prospects before in-person showings. This pre-screening step saved us significant time by ensuring visitors were genuinely interested before scheduling viewings.
Step 4: Screening Tenants and Signing Leases
Developing a thorough process to screen tenants for my rental property in Burien proved to be one of the most crucial steps in our landlord journey. Here's our comprehensive approach:
Our Tenant Screening Process:
- Pre-Screening Communication
- We created a standard email response with detailed property information and our basic requirements (income, credit score, move-in date)
- We conducted brief phone interviews before scheduling showings to assess communication style and verify serious interest
- Formal Application Collection
- We used Avail's online application system to collect consistent information from all applicants
- We required proof of income (pay stubs, offer letters, tax returns) demonstrating 3x the monthly rent
- We charged a reasonable application fee ($45) to cover screening costs and ensure serious applicants
- Comprehensive Background Checks
- We ran credit reports to verify financial responsibility (we looked for scores above 650)
- We conducted criminal background checks in compliance with Washington state and Burien fair housing laws
- We verified employment directly with employers, not just with provided documents
- Landlord References
- We prepared specific questions about payment history, property care, and lease compliance
- We asked about noise complaints, neighbor issues, and overall tenant behavior
- Fair Housing Compliance
- We maintained consistent screening criteria for all applicants to avoid discrimination claims
- We familiarized ourselves with protected classes under Washington state law, which extends beyond federal protections
After selecting a tenant, we implemented a thorough lease signing process:
- We used a Washington state-specific lease template that we customized for Burien's local ordinances
- We reviewed every clause with tenants in person or via video call to ensure understanding
- We conducted a detailed move-in inspection with date-stamped photographs
By implementing this rigorous screening process, we've maintained a 0% eviction rate and minimal late payments across our Burien rental properties.
Legal and Financial Considerations for Renting Your Property
When we decided to rent my property legally in Burien, we quickly realized the importance of understanding the complex legal and financial landscape. Washington state has some of the most tenant-friendly laws in the country, and Burien has additional local ordinances that landlords must follow.
Essential Legal Considerations:
- Washington Residential Landlord-Tenant Act (RLTA): We studied this comprehensive law that governs most rental relationships in the state.
- Fair Housing Compliance: Beyond federal protections, Washington state adds additional protected classes including marital status, sexual orientation, gender identity, and source of income.
- Security Deposit Regulations: We learned that Burien landlords must provide itemized receipts, store deposits in a separate interest-bearing account, and return them within 21 days of move-out.
- Eviction Moratoriums and Just Cause Requirements: Recent changes in Washington law require landlords to provide legally valid reasons for ending tenancies, even after lease expiration.
- Habitability Standards: We familiarized ourselves with our legal obligation to maintain the property in a habitable condition.
Critical Financial Considerations:
- Rental Income Taxation: We consulted with a tax professional to understand how rental income is reported on Schedule E and what deductions we could claim.
- Depreciation Benefits: We learned how to depreciate our rental property over 27.5 years, creating a significant tax advantage.
- Business License Requirements: We obtained the necessary Washington state business license and Burien city business license for our rental activity.
- Landlord Insurance: We upgraded from homeowner's insurance to a comprehensive landlord policy that covers liability, loss of rental income, and property damage.
- Record-Keeping Systems: We established organized systems for tracking income, expenses, and communications for both tax purposes and potential dispute resolution.
For first-time landlords in Burien, we strongly recommend:
- Consulting with a local real estate attorney to review your lease and policies
- Joining the Rental Housing Association of Washington for ongoing education and resources
- Working with an accountant familiar with rental property taxation in Washington state
Ongoing Management: Collecting Rent and Handling Maintenance
After successfully placing tenants in our Burien property, we quickly learned that effective ongoing management is crucial to maintain profitability and tenant satisfaction. Here's our approach to day-to-day operations:
Rent Collection Systems:
- Online Payment Platforms: We use Buildium for automated rent collection, which deposits funds directly into our account.
- Payment Policies: We established clear due dates, grace periods, and late fee structures in our lease agreement, consistent with Washington state regulations.
- Rent Increase Procedures: We follow Burien's requirements for notice periods (typically 60 days) when implementing annual rent adjustments based on market conditions.
Maintenance Management:
- Request Systems: We implemented a tenant portal through Innago where tenants can submit maintenance requests with photos and urgency levels.
- Vendor Network: We've built relationships with reliable contractors in Burien for plumbing, electrical, HVAC, and general repairs.
- Preventative Maintenance Schedule: We conduct seasonal inspections and maintenance for gutters, HVAC systems, and appliances to prevent costly emergency repairs.
- Emergency Protocols: We created a detailed emergency response plan for after-hours issues like water leaks or heating failures.
Property Inspections:
- Regular Check-ups: We conduct semi-annual inspections with proper notice (as required by Washington law) to identify potential issues before they become serious problems.
- Documentation Process: During inspections, we use a standardized checklist and take date-stamped photos to track property condition over time.
Self-Management vs. Property Managers:
After initially managing our Burien property ourselves, we evaluated the pros and cons of hiring a property manager:
- Self-Management Benefits: Greater control, higher profit margins, and direct tenant relationships
- Self-Management Challenges: Time commitment, 24/7 availability for emergencies, and staying current with changing laws
- Property Manager Benefits: Professional expertise, established systems, and buffer between owner and tenant
- Property Manager Costs: Typically 8-10% of monthly rent in the Burien area, plus leasing fees
Common Mistakes to Avoid When Renting Your Property
Throughout our years as landlords in Burien, we've made our share of mistakes and observed others make even costlier ones. Here are the most common pitfalls we've identified:
- Inadequate Tenant Screening
- Mistake: Rushing the screening process or accepting the first applicant who seems financially qualified.
- Solution: We now use a comprehensive screening process that includes credit, criminal, eviction, and employment verification, plus calls to previous landlords.
- Improper Pricing Strategy
- Mistake: Setting rent based on mortgage payments or arbitrary numbers rather than market research.
- Solution: We conduct quarterly competitive analyses of similar Burien rentals and adjust our pricing strategy accordingly.
- Insufficient Documentation
- Mistake: Using generic leases or failing to document property condition thoroughly at move-in.
- Solution: We invest in Washington state-specific lease agreements updated annually to reflect changing laws.
- Neglecting Legal Requirements
- Mistake: Overlooking Burien's specific landlord-tenant ordinances, which can be stricter than state laws.
- Solution: We attend quarterly workshops hosted by the Rental Housing Association of Washington and subscribe to legal update services.
- Poor Maintenance Planning
- Mistake: Reactive rather than preventative maintenance, leading to larger repairs and tenant dissatisfaction.
- Solution: We implement a seasonal maintenance schedule and budget approximately 1.5% of the property's value annually for repairs and updates.
- Inadequate Insurance Coverage
- Mistake: Maintaining a standard homeowner's policy rather than proper landlord insurance.
- Solution: We upgraded to a comprehensive landlord policy that includes liability protection, loss of rental income coverage, and higher property damage limits.
Key Takeaways for Renting Out Your Property
As we reflect on our journey of renting out property in Burien, we've compiled these essential takeaways to help you succeed in your landlord venture:
- Thorough Preparation Pays Off: We've found that investing time and resources in property preparation before listing attracts better tenants and commands higher rent.
- Market Research Drives Success: By thoroughly researching the Burien rental market before setting our price, we positioned our property competitively while maximizing our returns.
- Comprehensive Tenant Screening Is Non-Negotiable: Our rigorous screening process has been the single most important factor in our success as landlords.
- Legal Compliance Creates Protection: Staying current with Washington state and Burien-specific landlord-tenant laws has helped us avoid costly legal issues.
- Systematic Management Reduces Stress: Implementing organized systems for rent collection, maintenance requests, and communication has streamlined our property management and improved tenant satisfaction.
- Proactive Maintenance Saves Money: Our preventative maintenance schedule has repeatedly demonstrated that addressing small issues early prevents costly emergency repairs later.
- Professional Relationships Build Longevity: By treating our rental business professionally and maintaining respectful tenant relationships, we've enjoyed higher retention rates and fewer vacancies.
We proudly serve landlords throughout the surrounding areas and King County, including:
Ready to start your landlord journey? Contact us today to learn how we can help you maximize your rental property's potential.
Conclusion: Start Renting Your Property Today
When we first decided to rent my property in Burien, WA, we were uncertain about the journey ahead. Today, we can confidently say it was one of the best financial decisions we've made. Our rental property has become a reliable source of passive income, building our wealth while the property continues to appreciate in value in the thriving Burien market.
What we've learned is that successful property rental isn't about luck—it's about careful planning, consistent execution, and ongoing education. By following the framework we've outlined, you can avoid the common pitfalls that trip up many new landlords and position yourself for long-term success in the Burien rental market.
If you're ready to start your landlord journey, here are the immediate next steps we recommend:
- Assess your property's current condition and create a preparation checklist
- Research comparable rentals in Burien to determine your optimal pricing strategy
- Consult with a real estate attorney familiar with Washington landlord-tenant law
- Contact your insurance provider to obtain appropriate landlord coverage
- Begin assembling your team of reliable contractors for property maintenance
The rental market in Burien continues to show strong demand, making this an excellent time to rent your property. By implementing the strategies we've shared, you can create a profitable, sustainable rental business that serves both your financial goals and the housing needs of your community.
