We understand that navigating the complexities of renting out your property in Normandy Park, WA requires careful planning and market knowledge. The rental market in this charming Seattle suburb continues to show strong demand, making it an ideal time for property owners to become landlords. In this comprehensive guide, we'll share our first-time landlord tips and walk through everything you need to know about successfully renting your house in Normandy Park and beyond.
Should You Rent or Sell Your Property? Pros and Cons
When facing the decision to rent my property versus selling it outright, we carefully weighed several factors specific to the Normandy Park market and our personal financial goals. The Seattle metro area's strong rental demand made leasing an attractive option, but we wanted to be certain we were making the right choice.
Pros of Renting Out Your Property:
- Steady Income Stream - We found that renting provides reliable monthly cash flow that can supplement our income or cover the mortgage payments.
- Property Appreciation - By holding onto our property, we continue to benefit from Normandy Park's appreciating real estate values while someone else helps pay down our mortgage.
- Tax Benefits - We can deduct numerous expenses including mortgage interest, property taxes, insurance, maintenance costs, and even depreciation on our tax returns.
- Flexibility for Future Use - Renting allows us to maintain ownership while keeping options open for returning to the property later or passing it to family members.
- Portfolio Diversification - Our rental property serves as a tangible asset that diversifies our investment portfolio beyond stocks and bonds.
Cons of Renting Out Your Property:
- Landlord Responsibilities - We quickly learned that being a landlord means being on call for maintenance issues and tenant concerns.
- Potential Tenant Problems - Even with careful screening, there's always risk of late payments, property damage, or difficult tenant situations.
- Ongoing Maintenance Costs - We need to budget for regular upkeep, unexpected repairs, and periodic updates to keep the property competitive.
- Vacancy Periods - Between tenants, we face potential income gaps while still covering mortgage, taxes, and other expenses.
- Property Management Complexity - Managing a rental requires knowledge of local laws, proper documentation, and time commitment (or hiring a property manager).
We ultimately decided to rent our property after calculating that the monthly rental income would exceed our carrying costs by about 25%, creating positive cash flow while the property continued to appreciate.
Step 1: Preparing Your Property for Rental
When we decided to rent my property in Normandy Park, we learned that proper preparation is crucial for attracting quality tenants and maximizing rental value. Here's our step-by-step process:
- Conduct a Thorough Property Assessment
- We walked through every room with a critical eye, noting all issues that needed addressing
- We created a detailed inventory of existing features and their condition
- We took "before" photos to document the property's initial state
- Make Necessary Repairs and Improvements
- We fixed all obvious issues first: leaky faucets, broken outlets, damaged flooring
- We addressed structural concerns like roof integrity and foundation issues
- We updated outdated features that would deter potential renters
- Ensure Compliance with Building Codes
- We verified our property met Washington State building codes
- We checked Normandy Park's specific zoning laws and rental regulations
- We confirmed our property had the proper permits for any previous renovations
- Enhance Curb Appeal and Interior Presentation
- We refreshed landscaping and exterior paint to make a strong first impression
- We deep-cleaned all interior spaces, including carpets and air ducts
- We applied neutral paint colors to walls to appeal to a broader range of tenants
- Implement Energy-Efficient Upgrades
- We installed programmable thermostats to reduce utility costs
- We replaced old appliances with ENERGY STAR certified models
- We added weatherstripping and sealed air leaks to improve insulation
- Update Safety Features
- We installed new smoke and carbon monoxide detectors on every level
- We added fire extinguishers in the kitchen and garage
- We upgraded door and window locks for better security
By investing in these preparation steps, we found that our property attracted higher-quality tenants and commanded a rental price about 15% above similar but less-prepared properties in the Normandy Park area.
Step 2: Setting a Competitive Rental Price
When it came time to determine how much to rent my property for in Normandy Park, we knew that strategic pricing would be crucial. Setting the right rental price requires balancing market competitiveness with profitability.
Here are the key factors we considered when setting our rental price:
- Location specifics - We assessed our property's proximity to amenities like Normandy Park Towne Center, Marvista Park, and commute times to Seattle and Tacoma job centers
- Property size and layout - We compared our square footage, number of bedrooms/bathrooms, and floor plan functionality to comparable rentals
- Property condition and upgrades - We factored in our recent renovations, modern appliances, and energy-efficient features
- Included amenities - We considered our property's private yard, garage space, and storage options as value-adds
- Seasonal timing - We recognized that rental demand in Normandy Park peaks during spring and summer months
We ultimately settled on a price that positioned our property in the upper-middle range of comparable rentals, which allowed us to attract quality tenants while minimizing vacancy time. We also built in a modest annual increase clause in our lease to account for market appreciation and rising costs.
Step 3: Listing and Marketing Your Property Effectively
When it came time to find the best sites to list my rental property in Normandy Park, we developed a comprehensive marketing strategy that went beyond simply posting a basic listing. Here's our step-by-step process:
- Create Compelling Property Descriptions
- We crafted detailed descriptions highlighting our property's unique features like the updated kitchen, energy-efficient appliances, and proximity to Normandy Park's waterfront
- We incorporated keywords potential renters search for, such as "pet-friendly," "private yard," and "quiet neighborhood"
- We emphasized nearby amenities including Marvista Elementary School, Normandy Park Towne Center, and easy access to SeaTac Airport
- Capture High-Quality Photos and Visual Content
- We hired a professional photographer who specialized in real estate to capture our property in the best light
- We created a virtual tour using a 360-degree camera, which significantly increased prospect engagement
- We included floor plans to help potential tenants visualize the space
- List on Multiple Rental Platforms
- We posted on mainstream sites like Zillow, which automatically syndicated to Trulia and HotPads
- We utilized Apartments.com and its network (including Apartment Finder and ForRent.com)
- We listed on Avail and Zumper to reach different tenant demographics
- Leverage Social Media and Community Networks
- We created a dedicated Facebook post that we shared in Normandy Park community groups
- We utilized Nextdoor to reach nearby residents who might know potential renters
- We posted in Seattle-area Facebook housing groups where many prospective tenants search
By implementing this multi-channel marketing approach, we received 27 inquiries within the first week and had multiple qualified applications to choose from by day 10. This allowed us to be selective in our tenant screening process and minimize our vacancy period.
Step 4: Screening Tenants and Signing Leases
When it came time to screen tenants for my rental property in Normandy Park, we developed a systematic approach that helped us find reliable, responsible renters while staying compliant with fair housing laws.
- Initial Phone Screening
- We prepared a consistent set of questions to ask every prospective tenant
- We verified basic requirements like move-in timeline, pet needs, and household size
- This pre-screening saved us time by eliminating clearly unsuitable matches before showings
- Property Showings
- We observed how prospects treated the property during viewings
- We noted whether they arrived on time and asked thoughtful questions
- We paid attention to their reaction to property features and rules
- Formal Application Review
- We required income verification showing earnings of at least 3x the monthly rent
- We reviewed credit reports looking for patterns rather than just scores
- We conducted background checks for criminal history and eviction records
- We verified employment by speaking directly with employers
- Reference Checks
- We contacted previous landlords (not just the current one) to ask about payment history, property care, and whether they would rent to the applicant again
- We verified personal references to build a more complete picture of the applicant
Once we selected a tenant, we created a comprehensive lease agreement using a Washington-specific template that we customized for our property. We included clear terms regarding rent amount, security deposit, maintenance responsibilities, pet policies, and renewal terms.
Before move-in, we conducted a detailed property inspection with the tenant present, documenting the condition with photos and a written report that both parties signed. This established a clear baseline for comparison at move-out.
Legal and Financial Considerations for Renting Your Property
Understanding the legal and financial landscape is crucial for success and compliance when renting property in Normandy Park.
Key Legal Considerations
- Washington State Landlord-Tenant Laws - We familiarized ourselves with the Residential Landlord-Tenant Act (RLTA), which governs rental relationships in Washington. This comprehensive law covers everything from security deposits to eviction procedures.
- Fair Housing Compliance - We learned that both federal and Washington State fair housing laws prohibit discrimination based on protected classes including race, color, national origin, religion, sex, familial status, disability, sexual orientation, gender identity, veteran/military status, and source of income.
- Security Deposit Regulations - Washington law limits what we can charge for deposits and requires us to provide itemized statements when making deductions. We keep security deposits in a separate interest-bearing account.
- Eviction Procedures - We've educated ourselves on the proper legal process for evictions in Washington, which requires specific notices, waiting periods, and court filings.
- Local Ordinances - Normandy Park has specific regulations regarding rental properties, including inspection requirements and rental registration.
Financial Considerations
- Tax Implications - Rental income must be reported on our federal tax returns, but we can deduct numerous expenses including mortgage interest, property taxes, insurance, maintenance, depreciation, and professional services.
- Insurance Requirements - We converted our homeowner's policy to a landlord policy (also called dwelling fire or DP3 policy), which covers the structure, liability, and loss of rental income.
- Business License and Registration - We obtained a Washington State business license for our rental activity and registered with the Department of Revenue for tax purposes.
- Reserve Funds - We established a dedicated reserve fund equal to approximately six months of expenses to cover unexpected repairs, vacancies, or other emergencies.
For first-time landlords, we strongly recommend consulting with professionals who specialize in rental properties, including a real estate attorney, a CPA familiar with rental property taxation, and an insurance agent experienced with investment properties.
Ongoing Management: Collecting Rent and Handling Maintenance
After successfully listing our property and finding quality tenants, we discovered that the real work of being landlords was just beginning. Here's how we approach ongoing property management:
Rent Collection Systems
- Online Payment Platforms - We implemented an online rent collection system through Avail that automatically deposits funds directly to our account.
- Payment Policies - Our lease clearly outlines rent due dates, grace periods, and late fee structures. We've found that a small discount for early payment (2%) encourages timely rent payments.
- Record Keeping - Our online system automatically generates receipts and maintains payment histories, which has proven invaluable for both tax purposes and resolving any payment disputes.
Maintenance Management
- Maintenance Request System - We use a tenant portal that allows renters to submit maintenance requests with descriptions and photos.
- Vendor Network - We've built relationships with reliable contractors including a plumber, electrician, HVAC specialist, and general handyman who can respond quickly to issues.
- Preventative Maintenance Schedule - We conduct seasonal maintenance like gutter cleaning, HVAC servicing, and exterior inspections on a regular schedule.
- Emergency Protocols - We've established clear procedures for after-hours emergencies and provided tenants with appropriate contact information.
Self-Management vs. Property Managers
We initially debated whether to manage our Normandy Park property ourselves or hire a professional property manager. After careful consideration, we decided to self-manage because:
- Our property is located close to our primary residence, making site visits convenient
- We wanted to maintain direct control over tenant selection and property care
- The management fee (typically 8-10% of monthly rent) represented a significant expense
- Modern property management software made many tasks more streamlined than in the past
However, we recognize that professional management makes sense in many scenarios, particularly for out-of-state owners, those with multiple properties, or landlords with demanding primary careers.
Common Mistakes to Avoid When Renting Your Property
Throughout our journey as landlords in Normandy Park, we've made our share of mistakes and learned valuable lessons along the way. We're sharing these insights so you can avoid the same pitfalls:
- Inadequate Tenant Screening
- The Mistake: In our eagerness to fill a vacancy quickly, we once rushed the screening process and accepted a tenant without thoroughly checking references.
- The Solution: We now follow a comprehensive screening protocol that includes credit checks, background checks, income verification, employment confirmation, and speaking with previous landlords.
- Improper Pricing Strategy
- The Mistake: We initially priced our property based on our mortgage payment and desired profit rather than market realities, leading to an extended vacancy period.
- The Solution: We now conduct thorough market research using multiple sources to set competitive rates based on comparable properties in Normandy Park.
- Inadequate Documentation
- The Mistake: Our first lease agreement was a generic template that didn't address specific Washington State requirements.
- The Solution: We invested in a comprehensive, state-specific lease drafted by a real estate attorney that clearly outlines all terms, policies, and legal requirements.
- Neglecting Preventative Maintenance
- The Mistake: We once postponed replacing an aging water heater to save money, only to have it fail and cause water damage that cost far more to repair.
- The Solution: We now follow a proactive maintenance schedule and budget for regular system updates.
Key Takeaways for Renting Out Your Property
As we reflect on our experience renting our property in Normandy Park, we've compiled these essential takeaways to help guide your success as a landlord:
- Preparation Is Crucial - We found that investing time and resources in property preparation pays dividends through higher rental rates and better tenants.
- Market Research Determines Success - By thoroughly researching comparable rentals and understanding local market dynamics, we positioned our property competitively.
- Tenant Screening Is Your Best Protection - Our comprehensive screening process has been our most effective tool for preventing problems. Quality tenants are the foundation of a profitable rental experience.
- Legal Compliance Cannot Be Overlooked - Understanding and following Washington State and Normandy Park rental regulations has protected us from potential legal issues.
- Systems Streamline Management - Implementing efficient systems for rent collection, maintenance requests, and communication has transformed our property management experience.
- Financial Planning Prevents Surprises - Our dedicated reserve fund and careful budgeting for both routine and unexpected expenses have ensured our rental property remains profitable.
- Documentation Protects All Parties - Thorough documentation—from detailed lease agreements to move-in inspections with photos—has prevented disputes and provided clarity in all tenant interactions.
Conclusion: Start Renting Your Property Today
Our journey to rent my property in Normandy Park has been both challenging and rewarding. What began as an uncertain venture into the world of landlording has evolved into a reliable income stream and a valuable addition to our investment portfolio. The Seattle metro area's strong rental market continues to provide excellent opportunities for property owners willing to take the plunge into rental management.
If you're considering renting your property in Normandy Park or the surrounding area, we encourage you to take action now. Begin by assessing your property's rental potential, researching the local market, and consulting with professionals who can guide you through the initial setup process.
We proudly serve landlords throughout the surrounding areas and King County, including:
To get started with renting your property, consider these immediate next steps:
- Schedule a property assessment to identify necessary improvements
- Research current rental rates for similar properties in your area
- Consult with a real estate attorney about creating a Washington-specific lease agreement
- Contact insurance providers to obtain landlord policy quotes
- Begin preparing your property for professional photographs
By taking these initial steps, you'll be well on your way to successfully renting your property and enjoying the benefits of real estate investment. We wish you the best of luck on your landlord journey and are confident that with the right approach, renting your property can be a rewarding and profitable venture.
