Short answer: Before you list, check your mortgage and insurance, talk to a CPA about the tax impact, get the property rent-ready, and make sure your lease, disclosures, and city registrations are in place. In California, a few things are newer than most online checklists: working stove and refrigerator requirements (AB 628, effective January 1, 2026), the City of LA's updated renter protections notice (July 2026), and move-in photo documentation for deposits (tenancies starting July 1, 2025 or later).
Plenty of people end up renting out their home without planning to: a job move, a new baby and a bigger place, a purchase before the old house sells, an inheritance. If that's you, the goal isn't to do everything at once. It's to do things in the right order so a fixable oversight doesn't turn into an expensive one.
If you're still deciding whether to rent or sell, start with Should I Sell or Rent My House in Los Angeles?. If you've decided to rent, here's the checklist.
Step 1: Check the money and paperwork first
These are the items people skip and regret.
Your mortgage. Most owner-occupied mortgages assume you'll live in the home. Read your loan documents for occupancy terms, and talk to your lender about what they expect if you move out and rent. Don't guess.
Your insurance. A standard homeowner's policy often doesn't cover a rental. You'll typically need a landlord (dwelling fire) policy, and you may want liability coverage beyond the minimum. Tell your agent before the tenant moves in.
Your HOA. Some HOAs limit rentals, require minimum lease terms, or need registration. Get the rules in writing.
Your taxes. Renting can affect your home sale tax exclusion. Generally, to exclude a large portion of gain when you sell a primary residence, you need to have lived in it for two of the last five years, and that clock keeps running while you rent. Rental income also brings depreciation and recapture rules. This is a conversation for your CPA before you sign a lease, not after.
Your goals. Ask yourself how long you plan to rent, what monthly cash flow you need, and what you'd do if the house sat empty for two months.
Step 2: Understand which rules apply to your home
Not every rental in LA has the same limits. Whether your property is under the City of LA's RSO, California's AB 1482, or exempt from both changes your rent increase limits and your options later. Read Is My Los Angeles Rental Rent Controlled? before you write the lease.
One detail that matters a lot for homeowners: a single-family home or condo may be exempt from the state rent cap, but only if you meet the ownership requirements and the lease includes the required written notice.
Step 3: Register and get licensed, if required
In the City of Los Angeles:
Rental units covered by the Rent Stabilization Ordinance or Just Cause Ordinance generally need to be registered with the Los Angeles Housing Department, with an annual fee. LAHD has listed that fee at $31.05 per unit.
Rental property owners generally need a business tax registration certificate through the City's Office of Finance.
Requirements differ by city. If your property is in Santa Monica, West Hollywood, Beverly Hills, Pasadena, or another city, check that city's registration and licensing rules. Confirm current fees and requirements with the city directly.
Step 4: Get the home rent-ready
A rent-ready home rents faster, rents for more, and attracts better applicants. Every vacant day costs you. (Here's the math in How Do You Reduce Vacancy Loss on a Los Angeles Rental Property?)
Safety and habitability
Working smoke detectors, and carbon monoxide detectors where required
Water heater braced and strapped
Working heat, plumbing, electrical, and hot water
No active leaks, pests, or mold
Secure locks, with locks changed or rekeyed at turnover
New in 2026: appliances
California's AB 628 amended the habitability statute so that landlords must provide a working stove and refrigerator in leases entered into, amended, or renewed on or after January 1, 2026. Some terms in the law, such as what counts as "working," are not fully defined, so keep records of the appliance's condition at move-in.
Presentation
Deep clean, paint touch-ups, and minor repairs
Professional photography
A clear inspection of anything you've been meaning to fix for years
We see this over and over: the owners who do a careful make-ready before listing have fewer problems later. Buyers of rentals and good tenants both notice.
Step 5: Price it with data, not hope
Don't pick a number from a Zillow estimate or a neighbor's listing. A good rent is based on current comparable rentals, how long similar homes are taking to rent, the cost of vacancy, and the condition of your property. We walk through this in How Do You Know If Your Los Angeles Rental Is Priced Right?, and you can request a free rental analysis if you want a second opinion.
Step 6: Screen tenants carefully and fairly
Screening is the single highest-leverage thing you'll do as a landlord. Set written criteria before you advertise, apply them to everyone the same way, and know the fair housing rules. Read How Do You Screen Tenants in Los Angeles Without Breaking Fair Housing Laws? before you take your first application.
Step 7: Use a solid lease and the required disclosures
A California lease isn't one document. It's a lease plus a stack of disclosures and notices. Common ones include:
Lead-based paint disclosure (for homes built before 1978)
Megan's Law database notice
Mold disclosure
Bed bug disclosure
Smoke and carbon monoxide detector notices
Pest control, shared utility, and other property-specific notices
The City of Los Angeles Renter Protections Notice, which LAHD updated for July 1, 2026 through June 30, 2027
The written notice that the property is exempt from AB 1482 (if you're relying on the single-family or condo exemption)
Use current, attorney-reviewed or C.A.R. forms, not a template you found online. Forms change, and a missing disclosure can cost you later. Tip: keep a dated copy of everything you gave the tenant.
Step 8: Plan the money side
Security deposit: California generally limits it to one month's rent, with a limited exception for some small landlords. We break down the rules in How Much Security Deposit Can a Landlord Charge in California?
Move-in documentation: For tenancies starting on or after July 1, 2025, California requires photos documenting the unit's condition at or before move-in. Do a detailed walk-through with photos, date-stamped.
Rent collection: Decide how rent will be collected, what a late fee looks like within the lease and the law, and what your plan is if a payment doesn't come in. (See What Happens If a Tenant Stops Paying Rent in Los Angeles?)
A reserve: Set aside money for repairs. We'd rather you over-prepare than be surprised.
Step 9: Decide who's going to run it
This is the question under all the others. You can manage the rental yourself, and some owners do it well. But it means being available for maintenance calls, knowing the notice rules, keeping records, and handling the hard conversations. For owners who are relocating, working full-time, or managing more than one property, a property manager can be the difference between a stress-free income stream and a second job.
For what to look for, read How to Choose the Right Property Manager in Los Angeles and How Much Does Property Management Cost in Los Angeles?.
Frequently asked questions
What do I need to do before renting out my house in Los Angeles?
Check your mortgage, insurance, HOA rules, and tax situation. Then determine which rent rules apply, get the property rent-ready, register with the city if required, prepare a compliant lease and disclosures, and set up tenant screening and move-in documentation.
Do I need a business license to rent out my house in Los Angeles?
The City of Los Angeles generally requires rental property owners to hold a business tax registration certificate. Requirements vary by city, so check with your city's finance or licensing office.
Do I need to tell my mortgage lender I'm renting out my house?
Most lenders expect owner-occupancy when you take out an owner-occupied loan. Review your loan documents and speak with your lender before renting.
Will I lose my capital gains exclusion if I rent my house?
Not necessarily, but it can be affected. The exclusion generally depends on living in the home for two of the last five years before you sell. Talk to a CPA about your timeline.
What disclosures are required to rent a home in California?
There are several, including lead-based paint (pre-1978 homes), Megan's Law, mold, bed bugs, and others depending on the property, plus local notices like the City of LA's Renter Protections Notice. Use current compliant forms.
Does California require a landlord to provide a stove and refrigerator?
For leases entered into, amended, or renewed on or after January 1, 2026, AB 628 requires a working stove and refrigerator in a rental unit.
How much should I charge to rent my house in Los Angeles?
It depends on comparable rentals, condition, location, and timing. A rental analysis based on current comps is a better guide than an automated estimate.
Renting out your home for the first time?
We work with a lot of owners in this exact situation. If you'd like a clear plan, request a free rental analysis or reach out to us. You can also see how our Los Angeles property management works, and what's covered by our guarantees.
This article is general information, not legal, tax, or financial advice. Requirements vary by city and property and change often. Please consult a California attorney and a CPA about your situation. Last updated September 30, 2026.
Crystal Ferris, Realtor, DRE #02182639 | PMI Angel City, DRE #02440828
