Renting a Long-Term Property in the USA

Published on April 25, 2026 and written by Cyril Jarnias

Renting out a property long-term in the United States can prove to be a highly profitable venture for savvy investors. With a dynamic rental market and attractive yields in many American cities, overseas rental investment is increasingly appealing to foreigners. However, embarking on long-term rentals in the USA requires a solid understanding of local market specifics and mastery of the legal and practical aspects of property management.

In this article, we guide you step by step to succeed in your long-term rental project in the United States. From administrative formalities to daily tenant management, including setting the rent, discover all our expert tips to optimize your American rental investment.

Finding the Ideal Property: Keys to Choosing Your Rental Property Wisely

The first crucial step to succeeding in your rental investment in the United States is selecting the right property. Several criteria must be considered to maximize your chances of success:

Location is paramount. Prioritize areas with high rental potential, such as major dynamic metropolises (New York, Los Angeles, San Francisco, etc.) or college towns. According to Zillow data, average rental yields in these areas can reach 6 to 8% per year.

Carefully study local demographic and economic trends. Fast-growing cities like Austin, Nashville, or Raleigh often offer great opportunities. According to the US Census Bureau, these metropolises experience annual population growth exceeding 2%.

The type of property is also crucial. Medium-sized apartments and houses (2-3 bedrooms) are generally the most in demand on the American rental market. According to a RentCafe study, 40% of renters are looking for 2-bedroom homes.

Finally, the property’s condition and its appreciation potential should be considered. A property needing some work can offer a nice capital gain down the line. According to the National Association of Realtors, a kitchen renovation yields an average return on investment of 80%.

Establishing a Rock-Solid Lease: Key Points Not to Overlook

Once you’ve found your property, establishing a solid lease agreement is essential to secure your investment. In the United States, the lease agreement must follow certain specific rules:

The lease term is typically one year, renewable automatically. Some states allow shorter (6 months) or longer (2-3 years) leases. Check local legislation before setting the duration.

The rent amount and payment terms must be clearly stated. Specify the payment due date and penalties for late payment. According to an Apartment List study, 90% of American landlords require rent payment by the 5th of the month.

The security deposit is limited in many states. In California, for example, it cannot exceed 2 months’ rent for an unfurnished unit. Check the legal caps in effect.

The respective obligations of the landlord and tenant must be detailed: maintenance, repairs, utilities, etc. The allocation varies by state and local customs.

Lease termination clauses should be carefully specified. Provide for legitimate reasons for early termination and the required notice periods.

Don’t forget to include specific clauses like the prohibition of subletting or the policy regarding pets. According to the American Apartment Owners Association, 65% of landlords allow pets with an additional deposit.

Setting the Right Price: How to Determine a Competitive and Profitable Rent

Setting the rent is a delicate exercise that requires finding the right balance between profitability and attractiveness in the local rental market. Here are the main factors to consider:

Study rents charged in the neighborhood for similar properties. Sites like Zillow or Rentometer provide precise data on average rents by area. In New York, for example, the median rent for a 2-room apartment is $3,500 in 2025.

Account for the specific characteristics of your property: size, number of rooms, amenities, general condition, etc. A renovated or furnished unit can justify a higher rent. According to an Apartment List study, a furnished apartment rents for an average of 20% more than an unfurnished one.

Include utility costs in your calculation. In the United States, it is common for the tenant to cover certain utilities like electricity or water. Clarify this point in the lease.

Anticipate vacancy periods in your profitability calculation. The average vacancy rate in the USA is around 6% in 2025 according to the US Census Bureau.

Account for local taxes on rental income. Tax rates vary significantly by state. In California, for example, the marginal rate can reach 13.3% for high incomes.

Don’t hesitate to adjust your rents regularly based on market changes. According to the National Apartment Association, 61% of American landlords increase their rents each year.

Managing the Tenant Relationship Effectively: Keys to a Stress-Free Rental

Good management of your relationship with tenants is essential to ensure the longevity and profitability of your rental investment in the United States. Here are the key points to master:

The tenant screening process is crucial. Systematically perform a background check (credit check) and professional references. According to TransUnion, 95% of American landlords consider the credit score a determining criterion.

Conduct a detailed move-in inspection with a thorough condition report. Document the property’s condition with photos to avoid any future disputes. According to an Apartment List survey, 73% of rental disputes concern the condition of the unit at move-out.

Be reachable and responsive to your tenants’ requests, especially for urgent repairs. The law imposes intervention deadlines depending on the nature of the problem (24 hours for life-threatening emergencies, for example).

Scrupulously respect your tenants’ privacy. Landlord visits must be announced in advance (usually 24 to 48 hours depending on the state) unless it’s an emergency.

Handle any conflicts professionally. Always prioritize dialogue and mediation before considering legal action. According to the National Apartment Association, 80% of rental disputes are resolved amicably.

Anticipate lease renewal by contacting your tenants 60 to 90 days before the expiration. This is an opportunity to negotiate a potential rent increase.

If property management seems too time-consuming, consider hiring a specialized agency. Their fees (typically 8 to 12% of the rent) can be offset by better occupancy and fewer headaches.

Optimizing the Taxation of Your American Rental Investment

Taxation is a crucial aspect to master to optimize the profitability of your rental investment in the United States. Here are the main points to know:

Rental income is taxable in the USA, whether you are a US tax resident or not. The tax rate varies depending on your status and the amount of income. For non-residents, a flat rate of 30% generally applies.

Many expenses are deductible from rental income: mortgage interest, property taxes, insurance, management fees, etc. According to the IRS, depreciation of the property over 27.5 years is also deductible, which can significantly reduce your taxable base.

The US-France tax treaty helps avoid double taxation for French tax residents. Rental income is taxable in the USA, but a tax credit is granted in France.

The legal structuring of your investment can impact taxation. Creating a US LLC (Limited Liability Company) is often recommended to optimize taxation and limit your liability.

The sale of the rental property is subject to capital gains tax in the USA. The rate varies depending on the holding period. A partial exemption is possible if the property was your primary residence for at least 2 of the last 5 years.

The Foreign Investment in Real Property Tax Act (FIRPTA) imposes a 15% withholding tax on the sale price for non-residents. This amount is refundable if the actual tax due is lower.

Securing Your Investment: Essential Insurance Policies

To effectively protect your rental property in the United States, several types of insurance should be considered:

Landlord insurance is essential. It covers damage to the building, liability, and loss of rent in the event of a claim. According to the Insurance Information Institute, the average cost is $1,200 per year for a single-family home.

Natural disaster insurance should be taken out separately in high-risk areas (floods, earthquakes, hurricanes). In Florida, for example, hurricane insurance can cost up to 3% of the property’s value per year.

Rent guarantee insurance can be wise, especially for a first investment. It typically covers up to 12 months of unpaid rent and legal costs. The cost is around 2.5% of the annual rent.

Legal protection insurance covers you in the event of a dispute with a tenant. It covers lawyer and court costs. Expect to pay around $200 per year for this type of coverage.

Life and disability insurance on your mortgage is highly recommended if you financed your purchase with a loan. It guarantees loan repayment in case of hardship.

Don’t forget to require renters insurance from your tenants. This protects them and limits your liability in the event of a claim. According to an Insurance Information Institute study, only 41% of American renters are insured in 2025.