From Homeowner to Landlord

If you're trying to sell your house, get in line.

At the end of August, there were close to 4.3 million homes on the market, according to the National Association of Realtors . So what do you do with your house? One choice is to stay put. But not everyone has that option. Perhaps your family is relocating because of a new job, or a baby necessitates a larger home. If you have no choice but to move, there's another way to make that property work for you: rent it out.

Renting has its upsides, including regular income in the form of rent checks. In the short term, deciding to rent your house rather than sell it will help you avoid the current traffic jam in the real estate market.

But before you hang out a sign that says "Tenants Wanted," here are a few things to consider.

The laws

Landlords are bound by rules and regulations that outline their rights and responsibilities. For example, as landlord you must keep the premises in a habitable state. Another rule concerns security deposits -- one month, according to federal law, but some states allow two months' equivalent. These landlord-tenant rules include federal laws, state statutes, local ordinances and specific code requirements.

Check out federal laws on the Cornell University Law School Web site. For state laws, take a look at the landlord law section of Landlord.com, a clearinghouse for landlord-related information. You can also search for state-specific statues on the state laws section at FindLaw.com. And for local ordinances, check with your local housing authority or town hall.