For Rent By Owner: The Advantages and Disadvantages of Renting from a Private Landlord
By Jeremy Steckler
January 28, 2025
When searching for an apartment to rent, you may come across a “For Rent by Owner" sign. Typically, a property management company handles apartment rentals, but when you rent from a private landlord, you rent from an individual.
Whether you’re renting an apartment in Scottsdale or renting a home in Kansas City with plans of buying a home in Albuquerque, there are many pros and cons to renting from a private landlord, all of which you should carefully consider before signing on the dotted line of any rental agreement.
Pros of renting from a private landlord
The advantages of the “For Rent by Owner” model range from more housing options to more flexibility and beyond.
Housing choices extend beyond apartments
While you may come across a rental apartment from a private landlord, you're more likely to see single-family homes, townhomes, condos, garage apartments or even tiny homes for rent from a private landlord. These could include more space, a backyard, a private garage and other amenities.
You may have fewer restrictions when you rent from a private landlord
Renting through a property management company typically entails a detailed rental agreement with penalties (such as moving out early), specific rules (such as a no-pets policy), and a long-term rental agreement. With a private landlord, you might have more flexibility, such as the ability to move early without penalty, sign a month-to-month rental agreement or have a pet.
Enjoy a little more flexibility
David Donley of Host Starter, a property management company for AirBnB rentals in Dallas, adds that renting from a private landlord can be great for those that need that flexibility. “Move-in or move-out dates can be negotiated with a lot more cushion than a big corporation,” says David. “There are even situations where a private landlord may allow you to modify the house or add an amenity with their explicit approval. It’s definitely a great option, especially for a newer property where the chance of repairs is very low.”
John Hageman of North Path Property Management, a property management company in Minneapolis, seconds this point. “They'll likely be more willing to negotiate than a professional property manager would,” says John. “Whether that's the rent, late fees or even renter qualifications you may be able to make a ‘deal’ with them.”
It could be easier to qualify for a private rental
Property management companies often have strict requirements for potential renters to qualify for a rental. This could include a minimum credit score, confirmed employment and income requirements. A private landlord could still consider these same factors but is possibly more flexible if you have less-than-stellar credit. “Private landlords often have more lenient criteria when it comes to credit scores or rental history,” says Jordan Fortgang of LoKation Real Estate, a property management company based in Florida. “This flexibility can be a game-changer for renters who may not meet the stringent requirements of larger property management firms.”
Private rentals could be more affordable
Rent in a managed building typically includes fees for the property management company, amenities, such as a swimming pool and fitness center, landscaping and other maintenance and upkeep. With a private landlord, some of these fees go away, which could result in lower rent. You may find your landlord is willing to further reduce your rent in exchange for such services as lawn care, painting the apartment yourself, and other tasks.
You could have more privacy
Depending on the type of private rental property, you may have more privacy than living in an apartment building. For instance, if you're renting a single-family home, garage apartment, or tiny home, you'll have some distance from your neighbors. You also won't have to worry about the upstairs neighbor who waits until bedtime to vacuum the floors.
Enjoy a direct line to your landlord
If you need to reach your landlord, you can call him or her directly. You won't have to reach out to the property manager to report a maintenance issue and wait for someone to get back to you.
“A key benefit of renting from a private landlord is quicker response times and more thorough problem resolution when issues arise,” says Sierra Cullison of Wave Property Management, a property management company in Boise. Susan Pratt of 24k Property Management, another PMC in Boise, seconds this benefit. “An advantage of dealing with a private landlord would be that there is no middleman where communication is concerned,” says Susan. Likewise, if you have trouble making rent, you can talk directly with your landlord to work out a solution.
Cons of renting from a private landlord
Of course, there also are some drawbacks when you rent from a private landlord, which could discourage some renters from choosing this route for their next home.
There are few or no amenities
Private rentals typically don't have the same amenities found in apartment complexes with property management companies. “Unlike large apartment complexes that boast amenities like gyms, pools, or package lockers, private rentals may lack such features,” says Jordan Fortgang of LoKation Real Estate. “Renters must weigh the importance of amenities against their budget and lifestyle needs.”
You may have to wait for maintenance repairs when you rent from a private landlord
Having a direct line to your landlord does mean you can report an issue right away, but that does not mean they will address it right away. “Renting from a private landlord can be a mixed bag with how professional they are. Will they take care of maintenance items in a timely manner? Are they up to speed with all the latest tenant-landlord laws in Minnesota?” says John Hageman of North Path Property Management, a property management company in Minnesota. There could be a number of reasons for the delay, but the end result is the same: Your repairs could take longer.
Susan Pratt of 24k Property Management, a property management company in Boise, adds that renters discussing repairs or upgrades with the owner could lead to less quality work being done. “A property management company would handle that for the tenant,” says Susan. “A property management company would first come up with a thought-out plan of action with actual estimates at the ready for the homeowner and would be able to negotiate on the tenants' behalf with details on the necessity of repairs, the legality surrounding it or any benefits to an upgrade as applicable."
Your landlord might be your neighbor
When renting a private unit, such as a duplex or garage apartment, your landlord may live just a few feet away. While this is convenient if you need to report an emergency repair, it's intimidating if you want to host a party. Some landlords also may pay close attention to who comes and goes from your home and are not afraid to discuss it with you or others. Even if they're not nosy, you may encounter them more often, which could be uncomfortable for some renters.
Maintaining boundaries can be difficult
Having such a personal relationship with your landlord can make maintaining boundaries challenging. “Landlords may struggle to say no, and renters may face resistance to personal changes they want to make,” says Sierra Cullison of Wave Property Management, a property management company in Boise. “Private landlords often have emotional attachments to their properties, which can lead to pushback on significant requests.”
There could also be the potential for personal bias when renting from a private landlord. “Interactions with a private landlord can sometimes feel more personal, for better or worse,” says Jordan Fortgang of LoKation Real Estate. “While this can foster goodwill, it might also lead to less professional handling of disputes or disagreements.”
Private rentals might be hard to find
Unlike rentals handled by property management companies, private rentals usually aren't advertised, making them harder to find. If you want a private rental, you'll need more time to find one, and you'll likely have to widen where you search.
For instance, in addition to asking friends, family and coworkers if they know anyone renting a private unit, you'll need to scout out “For Rent by Owner" signs. Some online neighborhood groups also may advertise private rentals, but it's important to thoroughly vet any rental listing before signing a rental agreement or handing over any cash to avoid rental scams.
Your landlord may not be knowledgeable about your state’s laws
Depending on who you’re renting from, your landlord may not be up to date on state and local laws around a landlord-tenant relationship. “To be a successful landlord, you must deeply understand state and local legal regulations,” says David Bennett of PMI Equitas, a property management company in Bothell. “You must use proper documentation to ensure you comply with the law, while also knowing the tenant's rights and responsibilities. Property Managers are trained to understand these laws, do background checks, manage payments and address late payments, handle finances and accounting, and mediate disputes between landlords and tenants. Renting a property is a regulated business and many private landlords get into trouble because they do not know enough to be compliant with all the laws that apply in their jurisdiction.”
Randy Cox of Hearthside Rentals, a property management company in North Carolina, agrees with David that renters could be taken advantage of if they are not well-versed in the law. “Renters need to understand that not all private landlords understand all ordinances and laws regulating rental property,” says Randy. “Renters need to ensure they find assistance when they are having issues with their landlords to ensure the landlord is acting within the law. Private landlords may also have different lease documents and if they are not state-approved, there could be missing or inaccurate information. Renters need to be proactive and read these leases carefully and find legal or real estate advisors to help them determine if they are being treated fairly.”
Questions for a private landlord
Before signing any rental agreement, it's important to know all the specifics regarding the property, your responsibilities, and the landlord's responsibilities. Therefore, make sure to ask the following questions:
How much is the rent?
Does the rent include any utilities? If so, which ones and any maximum amounts?
When is rent due? Is there a late fee? If so, is that immediate or is there a grace period?
How can I pay my rent? Cash, check, credit card, online, etc.
Do I have to pay a deposit? If so, how much? Is it refundable when I move out?
Are there any other fees? If so, what are they and how much?
How long is the rental agreement?
What's the application process? Background check, credit check, etc.
Can I have a pet?
Can I have a roommate?
Is it possible to break the rental agreement early? If so, is there a penalty for doing so?
Do I have first rights for renewing the rental agreement?
What are my options for parking? Am I allowed to have guests park here, too?
How much notice do you provide before entering the home?
How do I place a maintenance request?
Can I paint?
Do you require me to carry renters insurance?
Are there house rules?
How much notice should I give if not renewing the rental agreement?
It's also important to have specifics regarding rent, utilities, what to do for maintenance and so on in writing so there's no confusion if a problem arises.
"For rent by owner" is not for everyone
There are many advantages when renting from a private landlord, but it isn't for everyone. It's important to review all the pros and cons to see if a private rental is really what you want for your next home.
We were named a local expert on ApartmentGuide. Read the full article here: For Rent By Owner: The Advantages and Disadvantages of Renting from a Private Landlord
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