Renting vs. Selling Your Home: What Every Homeowner Needs to Know Before Deciding

So, your home has been sitting on the market and the offers you’ve received aren’t quite what you were hoping for. Now you’re thinking, “Should I just rent it out instead of selling?”

If this sounds like you, you’re not alone. More and more homeowners are finding themselves in this exact situation, and there’s even a name for it—the accidental landlord.

What Exactly Is an Accidental Landlord?

In simple terms, an accidental landlord is someone who never planned to rent out their home but ends up doing so because selling didn’t go as expected. Maybe buyers weren’t biting, maybe the offers were too low, or maybe the timing just wasn’t right. Instead of slashing the asking price, these homeowners decide to lease their property until the market improves.

But here’s the catch: becoming a landlord isn’t as simple as cashing rent checks every month. It’s a job, one with risks, responsibilities, and hidden costs that many don’t consider until it’s too late.

So before you take the leap, let’s break down the critical questions you need to ask yourself.

Why Renting Your Home Is Becoming More Common

You’ve probably noticed that home sales have slowed down in many areas. The culprit? Rising mortgage rates and affordability challenges. Buyers are stretching their budgets thin, and homes that might have sold quickly a few years ago are now lingering on the market.

For sellers unwilling to drop their price, renting can feel like the logical fallback. But the reality is, renting isn’t always the “easy money” it appears to be on the surface.

Question 1: Does Your Home Have Rental Potential?

Not every home is cut out to be a profitable rental. Ask yourself:

• Location matters. Is your neighborhood attractive to renters? Properties near schools, public transport, and job hubs usually do better.

• Condition counts. Does your home need repairs before tenants move in? If so, do you have the time and money to handle them?

• Distance is key. Moving out of state? Managing repairs and tenants remotely can be a logistical nightmare.

If you answered “no” to any of these, selling may actually be the smarter financial decision.

Question 2: Are You Ready to Be a Landlord?

On paper, renting looks like passive income. In reality, it can feel more like a second job. Think about:

• The 2 AM call about a clogged toilet.

• The tenant who “forgets” rent for the third time in a row.

• The costly repairs when someone moves out and leaves damage behind.

Unless you’re prepared to take on these headaches—or hire a property manager to handle them—you might find landlording isn’t the stress-free income stream you imagined.

Question 3: Have You Factored in the True Costs?

Sure, you’ll collect rent, but that doesn’t mean you’ll come out ahead. Here are some of the often-overlooked expenses that eat into profits:

• Landlord insurance (about 25% more than standard homeowner’s insurance)

• Property management fees (usually around 10% of monthly rent)

• Maintenance and repairs (from broken pipes to worn-out appliances)

• Vacancy periods (when you’re paying the mortgage without rental income)

• Marketing costs (advertising the property, screening tenants)

When you add it all up, your “extra income” could quickly shrink—or even turn into a loss.

A Smarter Alternative: Revisit Your Selling Strategy

If you’re leaning toward renting simply because your house hasn’t sold, there’s another path worth exploring. Instead of jumping into the landlord life, talk to your real estate agent about adjusting your selling strategy.

• Maybe the price needs tweaking.

• Maybe staging could highlight your home’s best features.

• Maybe relaunching with fresh marketing could draw in the right buyers.

Often, a well-priced, well-marketed home sells faster than you’d think—without the baggage of being an unplanned landlord.

The Bottom Line

Renting your home might sound like a quick fix when your listing stalls, but it comes with challenges that aren’t always obvious at first. From late-night repair calls to hidden costs, the reality can be far from the dream of passive income.

Before making a decision, weigh the pros and cons carefully. For some homeowners, renting works out beautifully. For others, the stress and expense simply aren’t worth it.

If your main motivation is that your home hasn’t sold yet, it may be time to sit down with your agent, revisit your strategy, and relaunch with a sharper plan. Because sometimes, the best solution isn’t renting—it’s selling smarter.