With the Des Moines metro continuing to grow, many homeowners are asking: “Should I sell my house, or should I rent it out?” Whether you’re moving for work or just looking to build a real estate portfolio, turning your primary residence into a rental can be a great way to generate passive income—if you do it right. But being a landlord in Iowa involves more than just collecting a check. From 2026 rental permits to specific security deposit laws, there is a lot to manage.
Here is your step-by-step guide to successfully renting out your house in Central Iowa.
1. Get Your “Paperwork” in Order
Before you list your home on Zillow or Facebook Marketplace, you need to make sure you are legally allowed to rent it.
- The Rental Certificate: Most cities in the metro, including Des Moines, West Des Moines, and Ankeny, require a Rental Housing Certificate. This involves an application and a physical inspection by a city official to ensure the home meets the 2026 property maintenance codes.
- Insurance Shift: You must notify your insurance agent. A standard homeowner’s policy won’t cover you if a tenant is living there. You’ll need a Landlord Policy (DP-3), which typically covers the structure and provides liability protection.
2. Understanding Iowa’s Rental Laws
Iowa is generally considered a “landlord-friendly” state, but the Iowa Uniform Residential Landlord and Tenant Act (Chapter 562A) has strict rules you must follow:
- Security Deposits: In 2026, the maximum you can charge is two months’ rent. You must hold this in a separate, interest-bearing account. (Pro Tip: In Iowa, the landlord actually keeps the interest earned for the first five years of the tenancy).
- Returning the Deposit: You have exactly 30 days after a tenant moves out to return the deposit or provide a written, itemized list of damages. Missing this deadline can result in you being ordered to pay the tenant double the amount.
- Right of Entry: Unless it’s an emergency, you must give your tenant at least 24 hours’ notice before entering the property for repairs or inspections.
3. Setting the Right Price
The 2026 Des Moines rental market is competitive. To find the “sweet spot” for rent, don’t just guess.
- Run Comps: Look at similar 3-bedroom homes in your specific neighborhood (e.g., Waterbury vs. Easter Lake).
- Factor in Expenses: Remember that your rental income needs to cover the mortgage, property taxes (which are higher for non-owner occupied homes in Iowa), insurance, and a “vacancy fund” for when the house is empty.
4. Screening: Your Most Important Step
A “bad” tenant is much more expensive than a month of vacancy. In 2026, use a professional screening service to check:
- Credit History: Look for a history of on-time payments.
- Eviction Records: Iowa court records (Iowa Courts Online) are a great resource for local history.
- Criminal Background: Ensure you are complying with Fair Housing laws while still protecting your investment.
5. Maintenance: DIY vs. Professional
As a Des Moines landlord, you are legally responsible for keeping the property “habitable.” This means the heat must work in January and the plumbing must function year-round.
- The DIY Route: Great for saving money if you live nearby and have the tools.
- The Property Manager Route: If you’re moving out of state or don’t want “3:00 AM toilet calls,” a manager usually charges 8%–10% of the monthly rent.
Summary: Is Being a Landlord Right for You?
Renting out your home can be a fantastic long-term wealth builder, but it is a business, not a hobby. If the thought of inspections, late-night repairs, and tracking 2026 tax documents feels like too much, you might be better off selling.
Tired of the landlord headache before it even starts? If you have a property that needs too many repairs to pass a city rental inspection, or you just want a clean break, we can help. Des Moines Home Buyers LLC | We Buy Houses for Cash Fast buys houses cash, as-is—no inspections or “landlord permits” required.
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