Should You Rent Your Home If It Doesn’t Sell?

If your home has been on the market without any offers, renting might seem like an easy solution. In real estate, this is sometimes called becoming an “accidental landlord”, homeowners who intended to sell but end up renting their property until market conditions improve. While renting can work for some, it comes with responsibilities, costs, and risks that many sellers don’t anticipate.

Why Homeowners Are Considering Renting

Sales have slowed in some markets, leaving homes on the listing for longer periods. Some homeowners don’t want to lower their asking price and see renting as an alternative to holding out for the right buyer. However, becoming a landlord isn’t as simple as it may seem.

Key Questions Before Renting Your Home

1. Is Your Home Rental-Ready? Consider repairs, maintenance, and whether the location attracts renters. A property that isn’t ready could end up costing more than it earns in rental income.

2. Are You Ready to Be a Landlord? Managing tenants comes with responsibilities like emergency repairs, collecting rent, and handling property damage. Many accidental landlords underestimate the time and effort involved.

3. Have You Calculated the True Costs? Landlord insurance, property management fees, maintenance, advertising, and gaps between tenants can add up quickly. These expenses can reduce or even negate your rental income.

A Better Approach: Revisit Your Selling Strategy

Before deciding to rent, speak with your real estate agent. Adjusting your pricing, marketing, or strategy can attract serious buyers and may help you sell faster. Renting is an option, but it’s not always the best first step.

Renting your home can be a viable solution in certain situations, but it’s not without challenges. Carefully weigh the responsibilities, costs, and risks before becoming a landlord. Consulting your agent can help you make an informed decision and explore all available options to sell your home successfully.