Renting Out Your Home for the First Time: Landlord's Guide

Renting out your home for the first time can be a great source of income, but it can also be a headache if you don't prepare. Setting the wrong rent, choosing the wrong tenant, or signing a weak contract are all costly mistakes. In this guide, we walk you through everything a first-time landlord needs to know to rent with peace of mind.

1. Get the property ready

A clean, functional property rents faster and at a better price. Before you list it:

• Fix leaks, locks, electrical outlets, and any pending details.
• Paint and deep clean; good presentation raises the perceived value.
• Decide whether to rent it furnished or unfurnished based on your market.
• Take clear photos of every space in good lighting.

2. Set the right rent

Compare rents for similar properties in your area and adjust for condition, amenities, and location. A rent in line with the market reduces the time the property sits empty, which is usually more profitable than charging too much and taking months to fill it. Estimate a range with the rent calculator.

3. Choose a good tenant

The right tenant is your best insurance. Before accepting anyone:

• Ask for identification and proof of income.
• Verify their ability to pay relative to the rent amount.
• Request references from previous rentals.
• Define a guarantee: a guarantor (aval), a deposit, or a legal rental policy (póliza jurídica).

4. The contract and guarantees

Never rent on a handshake. A written lease agreement should include:

• The rent amount, payment date, and how the annual increase is calculated.
• The security deposit and the conditions for returning it.
• The term of the contract and renewal rules.
• Responsibilities for maintenance and utilities.
• An inventory of what you're handing over, if it's furnished.

5. Protect your property

• Consider a legal rental policy (póliza jurídica) that backs you up in recovering the property or unpaid rent if the tenant defaults.
• Make an inventory with photos of the condition at move-in.
• Document every payment with a receipt.
• Keep communication open and handle repairs on time: good treatment keeps good tenants.

Frequently asked questions

How much rent should I charge?

An amount in line with similar properties in your area, adjusted for condition and amenities. Charging too much lengthens the vacancy; a market-rate rent fills faster and is usually more profitable.

What guarantee should I ask for?

The most common is a security deposit and, depending on the case, a guarantor (aval) or a legal rental policy (póliza jurídica de arrendamiento) that makes recovery easier in case of default.

Is a written contract mandatory?

Highly recommended. The contract protects both parties and is your main evidence in any dispute over rent, deposit, or conditions.

Is it worth renting furnished?

It depends on your market. A furnished unit can command higher rent and attract short stays or business professionals, but it means more maintenance and replacement costs. Assess the demand in your area.