"We're relocating for work, but we don't want to sell. Can we just rent the house out?"
I get that call a lot from homeowners in Keller, Roanoke and Northlake. A job transfer comes up, a military assignment lands, or you're moving in with family for a while, and the house you bought to live in is suddenly the house you're thinking about renting. Nobody planned to become a landlord. That's why people call it being an "accidental landlord."
Here's my honest, step-by-step read on what to do first, so the house protects your finances instead of becoming a headache from 1,000 miles away.
The Short Answer
Yes, renting out your DFW home can be a smart move, but treat it like a small business from day one. Before you hand anyone a key, sort out five things: your mortgage and insurance, your property tax exemption, a realistic rent price, a Texas-compliant lease and move-in, and who will handle problems after you're gone. Get those right and most of the horror stories never happen.
Step 1: Run the Numbers Honestly
Start with what the house will actually rent for, not what a neighbor says theirs got last year.
- Price off real rental comps: Keller, Roanoke and Northlake are mostly owner-occupied, so true rental comps can be thin. Compare homes with similar size, age, school zone and finishes that actually leased recently.
- Add up your monthly costs: Include your mortgage payment, property taxes, insurance, HOA dues, a maintenance reserve and some vacancy time between tenants.
- Know what you'll net: If the rent barely covers the mortgage, a single water heater or HVAC repair can put you in the red that month. Know that going in.
Step 2: Call Your Lender and Your Insurance Agent
- Your mortgage: Many home loans include an occupancy requirement, especially if you bought recently. Read your loan documents and talk to your lender before you move out, so there are no surprises.
- Your insurance: A standard homeowner's policy is written for a home you live in. Ask your agent whether your policy covers a home you rent to someone else. Most owners need to switch to a landlord or dwelling policy, and it's worth asking about loss-of-rent coverage and liability limits while you're at it.
- Your tenant's belongings: Your policy won't cover the resident's stuff. We require renters insurance for that reason, and it protects owners too.
Step 3: Deal With Your Homestead Exemption
This is the one most accidental landlords miss. In Texas, a homestead exemption is for your principal residence. Under Texas Tax Code § 11.13(l), a home can keep its homestead status during a temporary absence of less than two years, but only if you don't establish a different principal residence and you intend to move back.
If you're moving for good, or you buy or settle into another primary home, your entitlement ends. Texas Tax Code § 11.43(g) says you must notify the appraisal office in writing before May 1 after your entitlement to the exemption ends. For Keller homes, that's the Tarrant Appraisal District; for most of Roanoke and Northlake, it's the Denton Central Appraisal District. Plan for a higher tax bill once the exemption comes off, and build it into your rent math. I'll cover this in more depth in an upcoming post on turning a homestead into a rental.
On the federal side, rental income and expenses go on your tax return. The IRS explains the basics in Publication 527, Residential Rental Property. Talk to your CPA before your first rent check arrives.
Step 4: Check Your HOA's Leasing Rules
A lot of homes in Keller, Roanoke and Northlake sit in HOA communities. Texas Property Code § 209.016 limits what an HOA can demand about your tenants (it can't require that applicants be submitted for HOA approval or require their credit reports), but it also says the HOA can still adopt and enforce leasing and occupancy restrictions. Read your deed restrictions for minimum lease terms, rental caps or registration requirements before you list.
Step 5: Get the Home and the Lease Texas-Ready
- Rekey the locks: Texas Property Code § 92.156 requires the landlord to rekey key-operated security devices at the landlord's expense no later than the seventh day after each tenant turnover.
- Smoke alarms: Texas has specific smoke alarm rules for rentals. I covered them in my post on smoke alarms in Texas rentals.
- A real Texas lease: Use a current, Texas-specific lease with clear rules on rent, late fees, maintenance requests, pets and move-out, not a generic form from the internet.
- Document the condition: Take dated photos and video of every room before move-in. When the lease ends, Texas generally requires you to refund the security deposit, minus any lawful itemized deductions, within 30 days after the tenant surrenders the home (§ 92.103). Good move-in records make that process clean.
- Screen with written criteria: Apply the same standards to every applicant. Our tenant screening process is built around that.
This is general information, not legal or tax advice. Talk to a Texas attorney or CPA about your specific situation.
Step 6: Decide Who Answers the 2 A.M. Call
Here's the part people underestimate. When you live in Colorado or Virginia and the AC quits in a Keller August, someone local needs to answer the call, line up a vendor and follow up. Texas law also gives tenants remedies when a landlord doesn't respond to repair requests properly, so slow or sloppy follow-up is a real risk for owners.
You can self-manage from a distance if you have a trusted local handyman and a lot of patience. Or you can hand it to a local manager with 24/7 maintenance coordination, so you get updates instead of emergencies.
How We Help Accidental Landlords
Parker and I bring 22+ years of combined property management experience. We've leased more than 500 homes, average about 12 days on market and have earned 70+ five-star reviews. We handle residential homes only, so homes like yours are all we do.
Our pricing is simple. Full-service management is an 8% monthly management fee plus a leasing fee of 50% of the first month's rent. If you only need a great tenant placed, Placement Only is 100% of one month's rent. There are no other fees. Our agreements are month-to-month and can be canceled anytime, which is a good fit if you might move back someday. And if we placed the tenant, we handle the eviction for free. See the details on our pricing page.
If you're moving and want to keep your home in Keller, Roanoke, Northlake, Haslet or Flower Mound, I'm happy to put together a free, no-obligation rental analysis and give you an honest read on what it should rent for and what you'd net. Call (304) 878-8629 anytime, or learn more about our Keller property management, Roanoke property management and Northlake property management services.
