Check the mortgage, HOA and insurance before you rent

Renting out your home touches three agreements you already have: the insurance policy, the mortgage and the HOA's rules. Each has its own terms about renting, and each is easier to sort out before the first listing than after a tenant moves in.

The insurance policy

Call your insurance agent first, and ask how the policy treats a home that is rented out.

A landlord policy is mainly for traditional long-term leases. It covers physical damage to the structure of the home, but not the tenant's belongings.

The mortgage

Read the occupancy section of your mortgage. Then call your servicer, ask whether renting the home changes anything, and ask for the answer in writing. Note the date of the call, the name of the person you spoke to and what they said, and keep the written answer with your mortgage papers.

The HOA or condo association

If the home is in an HOA or a condo association, read its governing documents for anything about rentals. Ask the management company what applies to your home before you sign a lease, and keep its answer in writing with the governing documents.

A house built before 1978

Before a tenant signs a lease on a house built before 1978, the landlord gives the tenant the pamphlet Protect Your Family From Lead in Your Home. The landlord also discloses any known lead-based paint or lead hazards. A lease of 100 days or less with no renewal is exempt. Lead-based paint in good condition is usually not a hazard. Paint that is peeling, chipping, chalking or cracking is a hazard and needs prompt attention.

The money record

Keep the rental's money separate from the start: rent received, repairs, insurance and the other costs of renting. Record each payment with its date, the amount and what it was for, and keep the receipt with it. A photo of each receipt in one folder is enough.

An annotated example

What to do next

Make the insurance call first, then read the mortgage and the HOA's rules. Start the money record before the first rent arrives.