If your home has been on the market without receiving any offers that meet your expectations, you might be asking yourself: what’s next? More and more homeowners in this situation are considering an alternative: should I rent it instead?

There’s actually a term for this scenario in the real estate world—it’s called becoming an accidental landlord. According to Yahoo Finance:

“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 Trend Is Gaining Momentum

Right now, we’re seeing more cases of accidental landlords than ever. Business Insider sheds light on this growing trend:

“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."

Slower sales and affordability concerns are making it tougher for buyers to jump into the market, leaving some sellers with listings that linger. When sellers are hesitant to lower their asking price, renting may seem like a logical next step.

But before jumping into landlord life, it’s important to consider whether this path truly aligns with your goals. Being a landlord involves more than just collecting monthly rent—it comes with added responsibilities and unexpected expenses.

If renting has crossed your mind, ask yourself these key questions first:

1. Does Your Property Have Rental Potential?

Just because a home can be rented doesn’t necessarily mean it should be. Here are a few things to think about:

Are you moving far away? Handling repairs and tenant concerns remotely isn’t always easy.

Does your home require updates or fixes before it’s rental-ready? Do you have the time or budget to make those improvements?

Is your neighborhood attractive to renters, and will the rental income cover your costs and still leave room for profit?

If any of these questions raise concerns, selling might still be your most practical option.

2. Are You Prepared To Take on the Responsibilities of a Landlord?

The idea of passive income sounds appealing, but the reality can be more hands-on than expected. Consider scenarios like:

Late-night phone calls about broken appliances or plumbing issues

Following up on missed rent payments

Managing property damage and repairs between tenants

As Redfin highlights:

“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 Accounted for the Full Financial Picture?

Renting your home comes with costs you might not have factored in. Bankrate outlines some of these hidden expenses:

Higher insurance costs—landlord policies can be about 25% more than standard homeowner’s insurance

Property management fees—typically around 10% of your monthly rent

Ongoing maintenance and marketing costs

Possible vacancy periods where you’ll need to cover the mortgage without rental income

These costs can quickly add up, potentially offsetting any rental income you expect to earn.

Consider a Strategic Pricing Refresh Instead

If you’re leaning toward renting simply because your home hasn’t sold, it may be worth revisiting your sales strategy first. Connecting with your real estate agent could help you reassess your asking price and relaunch your listing more effectively.

With expert guidance and a fresh approach, you might attract the right buyer and achieve your original selling goals—without the added stress of becoming a landlord.

Bottom Line

Renting your home can be a smart financial move under the right circumstances, but it’s not right for everyone. If managing a rental sounds more stressful than strategic, don’t discount the value of refining your listing and pricing strategy. A trusted expert can help guide you toward the best path based on your unique situation.

For personalized advice and to explore all of your selling or renting options, reach out to Mike Panza and the team at Panza Home Group. They’re here to help you navigate your next steps with confidence and clarity. Learn more and get in touch here: https://panzarealestate.com/team/mike-panza