Let me start with a story about someone who recently visited the consultation office. They put their long-time home in Ann Arbor up for rent for the first time, but the tenant has been delaying rent payments for two months and has not been responsive. The landlord had not properly outlined the procedures for late payments in the contract, which led to a delayed response. This is a situation that first-time landlords often encounter.

Before officially renting out the property, there are preparations to be made. It's important to check that the smoke detector and carbon monoxide detector are functioning properly, and if there are any visible damages to the walls or floors, it's best to address those beforehand. Being prepared will help ensure that the photos look good and that you can instill trust in potential tenants during their first visit.

The first thing to determine is the rent amount. If you set it based on a hunch, you might end up losing money later. According to Zumper data, as of the end of June 2026, the average rent in Ann Arbor was $2,007. A one-bedroom apartment averages $1,450, a two-bedroom around $2,000, and a three-bedroom can go up to $2,800. It's worth noting that this figure has decreased by 13.5 percent over the past year, so if you set a high price based only on last year's rates, your property may remain vacant for a long time. Don't rely solely on Zumper data; it's more accurate to look for similar listings on Zillow or Rentometer that match your home's number of bedrooms and square footage. There can be significant price differences even within Ann Arbor, between downtown and the outskirts.

Once you've set the rent, it's time to post your advertisement. You can list your property on platforms like Zillow, Apartments.com, and Zumper, including photos and details. It's best to include plenty of bright photos taken during the day, and clearly state whether utilities are included and if pets are allowed to reduce inquiries.

When inquiries come in, the next step is tenant screening. Simply put, this is the process of verifying whether the person can pay rent on time. You typically look at three main factors: credit score, proof of income, and previous rental history. Many landlords use a guideline of requiring income to be at least three times the rent. When you receive applications, it's common to charge a small application fee to cover the costs of credit checks and background investigations. Skipping this step and rushing into a contract can lead to issues surfacing later, as seen in the earlier consultation case.

If the screening is successful, it's time to write the lease agreement. You must document the rent amount, payment due date, security deposit amount, lease term, pet and smoking policies, and maintenance responsibilities. If the terminology is unfamiliar, think of the lease agreement as a document that outlines the promises both the landlord and tenant must adhere to during the rental period. Relying solely on verbal agreements can leave you without evidence if disputes arise later.

There are also regulations that landlords in Michigan must be aware of. The security deposit cannot exceed 1.5 times the monthly rent and must be returned to the tenant within 30 days after they move out, along with a statement of deductions. Tenants can dispute the deductions within seven days of receiving the statement. If rent is not paid, a seven-day eviction notice must be sent before legal proceedings can begin. It's also good to remember that deductions from the security deposit are limited to actual damages, not general wear and tear. For example, faded carpet due to age is considered wear and tear, but cigarette burns or scratches from pets are considered damages.

When renting out a home, existing homeowner insurance may not be sufficient. You should consider switching to rental insurance or adding riders. These procedures can vary in detail depending on the county or situation. This article summarizes general information, and if you are drafting a lease or encounter disputes with tenants, it's advisable to consult a real estate attorney or a local property management company first.