Should You Rent Your Home Instead of Selling? Here’s What To Consider:
If your house has been sitting on the market without the right offer, you may be asking yourself: what should I do if it doesn’t sell? For many homeowners, that question leads to another one—should I rent it out instead?
In real estate, we call this becoming an accidental landlord.
As Yahoo Finance puts it:
“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 number of accidental landlords is rising. Business Insider explains:
“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 higher borrowing costs slowing sales, more listings are sitting. If dropping the price doesn’t feel like the right move, renting can sound like a good backup plan. But here’s the truth—being a landlord isn’t as simple as it seems, and it usually comes with more responsibility and risk than most expect.
Here are three questions you should think about before deciding:
1. Does Your House Have Rental Potential?
Not every home makes sense as a rental. Ask yourself:
- Are you moving out of state? Managing from far away is tough.
- Does the house need repairs before it’s rental-ready, and do you have the time or money to make them?
- Is your neighborhood attractive to renters, and would it actually turn a profit?
If any of those questions give you pause, selling may be the better path.
2. Are You Ready To Be a Landlord?
Rental income sounds like easy passive money, but in reality, it often looks like this:
- Late-night calls about broken A/C units or plumbing
- Tenants missing rent payments
- Damage between leases that you’ll need to fix
As Redfin explains:
“Landlords have to fix things like broken pipes, defunct HVAC systems, and structural damage, among other essential repairs. If you don’t have a few thousand dollars on hand to take care of these repairs, you could end up in a bind.”
3. Have You Factored In the Real Costs?
Bankrate points out a few of the extra costs that often surprise homeowners:
- Landlord insurance (typically 25% higher than standard coverage)
- Property management fees (often 10% of monthly rent)
- Maintenance and advertising costs
- Mortgage payments during vacancies
These add up quickly and can cut into your bottom line.
Why Selling May Still Be the Better Option
Renting can make sense for the right homeowner and the right house, but if you’re only thinking about it because your listing didn’t get traction, there may be a smarter solution. Often, revisiting your pricing strategy, refreshing your listing, and relaunching it properly can attract the right buyers and get the sale done.
Bottom Line
Before you rent your home, carefully weigh the responsibilities, risks, and expenses of becoming a landlord. For many homeowners, the hassle just isn’t worth it.
If you’d like to talk through your options, I’d be happy to help you review your situation and come up with the best strategy for moving forward.
The information and opinions in this article are not investment advice. Tim Stice makes no guarantees about accuracy or completeness. Always do your own research and consult a professional before making financial decisions. Tim Stice is not liable for any loss or damage resulting from reliance on this content.
Tim Stice, Broker Realtor | Hawaii Life | Maui, Hawaii | Real Estate Agent
