Find a suitable location in an open area. Choose a field, garden area or even a large, open yard. Avoid locations where pesticides and herbicides are used, and don't place a birdhouse near a bird feeder where other birds may bother it.
Mount the birdhouse on a fence post, in a tree or --- better yet --- a freestanding metal pole or PVC pipe. Predators have a difficult time climbing these type of poles. Place the house at least 6 feet from the ground, but not so high that you can't reach it to clean it after the birds have left for the season.
Entice a bird to occupy the birdhouse by putting a bird bath near it. A shrub that bears fruit, such as a wild cherry or mulberry, also lures birds, assuming it is bearing ripe fruit.
Place the birdhouse so the hole is facing either to the north or the east if the summers in your area are stifling hot. This helps keep the house cooler.
Place the birdhouse by February if you live in a Southern state and by the middle or last of March if you live in a Northern state.