Thinking About Renting Your Home Instead of Selling? Read This First
If your home has been sitting on the market without an offer you feel comfortable accepting, you might be asking yourself: What’s my next move if it doesn’t sell? For many homeowners, that question leads to another: Should I just rent it out instead?
There’s actually a name for this situation in real estate—it’s called becoming an accidental landlord. Yahoo Finance defines it this way:
“‘Accidental landlords’ are homeowners who tried to sell but couldn’t get the price they wanted, so they’ve chosen to rent their homes until market conditions improve.”
Why More Homeowners Are Becoming Accidental Landlords Today
This trend is picking up steam. Business Insider explains:
“While accidental landlords have always existed . . . today’s slower home sales, fueled by higher borrowing costs, are creating more reluctant rental owners.”
In short, many buyers are struggling with affordability, which means sales are lagging. Some homes are staying on the market longer, and rather than lowering the price, owners are opting to lease their properties instead.
But here’s the key point: renting wasn’t your original plan—and that may be for a reason. Taking on the role of landlord comes with unexpected responsibility, expenses, and risks. If you’re considering this path, take time to reflect on these important questions:
1. Is Your Home a Good Candidate for a Rental?
Not every house is suited for the rental market. Ask yourself:
Are you relocating far away? Managing repairs from another city or state can be very difficult.
Does your property need repairs or upgrades before tenants can move in? Do you have the budget and time for those fixes?
Is your neighborhood attractive to renters, and would the rent you can charge be profitable?
If you hesitate on any of these, selling might still be the smarter decision.
2. Are You Prepared To Be a Landlord?
Many people imagine rental income as “easy money,” but the reality often looks like this:
Middle-of-the-night phone calls about plumbing issues or broken air conditioning
Chasing tenants for late rent payments
Covering the cost of damage or wear and tear between leases
As Redfin puts it:
“Landlords have to handle things like broken pipes, HVAC repairs, and even structural issues. Without a reserve fund of several thousand dollars, you could quickly run into financial trouble.”
3. Do You Fully Understand the Costs Involved?
Renting comes with expenses beyond the mortgage. Bankrate highlights some of the hidden costs:
Higher insurance premiums (landlord policies are often 25% more expensive)
Property management fees if you hire a company (about 10% of monthly rent)
Marketing and ongoing maintenance costs
Vacancy periods when you’ll need to cover the mortgage yourself
These expenses can add up quickly, cutting into—or even wiping out—your rental profit.
A Smarter Option?
For some homeowners and properties, renting is a great move. But if you’re considering it only because your listing isn’t selling, it may be wise to first revisit your pricing and marketing strategy with your agent. With the right adjustments, you may be able to attract genuine buyers and close a sale. Before you commit to renting out your property, carefully weigh the advantages and drawbacks. For many homeowners, the added responsibility, stress, and costs of being a landlord may not be worth it.
