Becoming an Accidental Landlord

Sometimes you move before you sell, and your Spring home becomes a rental almost by accident. If that's you, here's what changes.

Update your insurance

A standard homeowners policy may not fit a rental. Ask your agent about a landlord policy, and encourage tenants to carry renters insurance.

Expect tax changes

Once the home is no longer your primary residence, your homestead exemption may no longer apply, and rental income has tax effects. Talk to a CPA.

Use a solid lease

A clear written lease protects both sides. It should cover rent, deposits, repairs, pets and entry.

Know the deposit rules

Under Texas law, a landlord must generally refund a security deposit within 30 days after the tenant moves out, once the tenant gives a written forwarding address. Normal wear and tear can't be deducted. Document the home's condition at move-in and move-out.

Plan for repairs

Tenants will call when something breaks. Keep a reserve and a list of reliable contractors, or hire a property manager.

Check community rules

Your association may have leasing requirements, such as minimum lease terms.

Revisit the decision

If being a landlord isn't for you, selling remains an option. I'll show you what you'd net either way.

How long does a Texas landlord have to return a security deposit? Generally 30 days after the tenant moves out, once the tenant has provided a written forwarding address.

Do I need different insurance to rent out my home? Usually, yes. A landlord policy is designed for rentals. Talk to your insurance agent before your first tenant moves in.