If your home has been sitting on the market without the offers you hoped for, you might be wondering: should I rent it instead of selling? More and more homeowners are asking that question—and many are stepping into the role of what’s called an accidental landlord.
Yahoo Finance defines it like this:
“These ‘accidental landlords’ are homeowners who tried to sell but couldn’t fetch the price they wanted — and instead have decided to rent out their homes until conditions improve.”
Why This Is Happening More Often Right Now
The rise in borrowing costs has slowed home sales across the country. Business Insider puts it bluntly:
“While there have always been accidental landlords . . . an era of middling home sales brought on by a steep rise in borrowing rates — is minting a new wave of reluctant rental owners.”
With affordability challenges keeping buyers on the sidelines, some listings are sitting longer than usual. For homeowners who don’t want to reduce their asking price, renting can feel like the next best option. But before you take that leap, you’ll want to think carefully about what becoming a landlord really involves.
1. Does Your House Have Potential as a Profitable Rental?
Not every home makes sense as a rental. Ask yourself:
· Is your property in a neighborhood that typically attracts renters?
· Will you need to invest in repairs or upgrades before tenants move in?
· Are you moving far away, making it harder to manage maintenance and emergencies?
If the answer to these questions makes you hesitate, selling may still be the stronger option.
2. Are You Ready To Be a Landlord?
Rental income sounds passive, but the reality is often anything but:
· Middle-of-the-night calls for clogged toilets or broken A/C systems
· Chasing down missed rent payments
· Covering the costs of damage between tenants
As Redfin points out, landlords are responsible for essentials like plumbing, HVAC, and structural repairs. If you don’t have the funds set aside for these expenses, renting could become more stress than it’s worth.
3. Have You Considered the True Costs?
Renting your home isn’t free money. According to Bankrate, here are some costs that often surprise new landlords:
· Landlord insurance, which typically costs 25% more than homeowner’s insurance
· Property management fees (around 10% of monthly rent if you hire a manager)
· Ongoing maintenance and tenant advertising
· Periods of vacancy where you’re covering the mortgage with no rental income
These costs can add up quickly and eat into your expected “profit.”
The Better Alternative? Revisit Your Selling Strategy
For some, renting is the right move. But if you’re only considering it because your listing hasn’t attracted buyers, talk with your real estate agent before you pivot. Adjusting your pricing strategy, refreshing your marketing, or relaunching your home could bring in serious buyers and get your property sold without the extra stress of becoming a landlord.
Bottom Line
Becoming a landlord isn’t something to take lightly. It comes with financial risks, time demands, and headaches many homeowners never anticipate. Before you decide to rent your home, weigh the pros and cons carefully—and make sure it truly fits your long-term goals.
