Should You Rent Instead of Sell Your Home Right Now?
If your home is on the market but the right offer hasn’t come along, you may be asking yourself an important question: should I rent it out instead of selling? For a growing number of homeowners, the answer is yes. In fact, many are finding themselves in what’s known as the role of an “accidental landlord”—a situation where selling doesn’t make sense right now, so renting becomes the next best option.
Why More Homeowners Are Considering Renting
Today’s housing market looks very different from just a few years ago. Higher mortgage rates have limited affordability, and some buyers have paused their search altogether. This means certain homes are sitting longer without offers, leaving sellers with a choice: lower the price, or rent instead. For many, renting creates an opportunity to hold onto a valuable asset while waiting for the market to shift.
Historically, real estate has proven to be a strong long-term wealth builder. Renting allows homeowners to generate income, cover expenses, and retain ownership until conditions improve.
Does Your House Have Potential as a Profitable Rental?
Not every home works well as a rental property. Before moving forward, ask these key questions:
Is the neighborhood in demand with renters?
Will the rental rate cover the mortgage, insurance, taxes, and other costs?
Does the property need repairs or updates to make it safe and comfortable for tenants?
If these factors align, renting could be a smart financial decision. For those unsure of rental potential, working with a professional property manager can help. A property manager can run numbers, provide insights on tenant demand, and handle day-to-day operations. For example, Justin with Blake and Alder Property Management is one trusted local resource for homeowners who want to explore this option.
Are You Ready To Be a Landlord?
On paper, renting sounds like an easy way to earn income. In practice, it comes with significant responsibilities. Landlords must be prepared for:
Middle-of-the-night maintenance calls.
Missed rent payments and collections.
Repairs between tenants.
Unexpected costs for appliances, systems, or structural issues.
For those without the time, resources, or cash reserves to handle these challenges, hiring a property manager may be the best path forward. Keep in mind, management fees typically run about 8–10% of monthly rent.
The True Costs of Renting
Beyond routine upkeep, renting comes with hidden costs that often surprise first-time landlords. Landlord insurance policies usually cost about 25% more than standard homeowners’ coverage. Vacancy periods between tenants can leave months of mortgage payments uncovered. Marketing, tenant screening, and ongoing maintenance all add to the bottom line.
While rental income can help offset expenses, it’s essential to account for these additional costs when deciding whether renting is truly profitable.
An Alternative: Revisit Your Selling Strategy
If renting only feels appealing because the home didn’t sell quickly, it may be worthwhile to take another look at the sales approach. A refreshed marketing plan, updated photos, or a strategic price adjustment can often bring in new buyers. With the right strategy, a sale may still be possible without becoming a landlord.
Bottom Line
Renting out a home can be a smart move for certain homeowners—but it isn’t right for everyone. Before making the leap, evaluate the property’s rental potential, consider the responsibilities and costs of being a landlord, and explore whether a revised selling strategy could be the better path. The right decision will depend on both current market conditions and long-term financial goals.
Join Jackie and Michele in this week's market update video!