SHOULD YOU RENT YOUR HOME INSTEAD OF SELLING?
6 SEPTEMBER 2025
Good question. In fact, this is the question I like to start with whenever I meet with homeowners considering selling.
I like to begin with the bigger picture: could this house continue to serve as part of your family’s future, even as you move on? Holding onto a property can preserve a place in the community, and its equity may help you step confidently into your next home. I like to explore all options when supporting clients.
In today’s market this question seems more pertinent as more and more homeowners are discovering that selling a house may not be as swift or straightforward as they hoped, especially if that have an aspirational list price in mind that is out of sync with today’s marketplace.
Mortgage rates remain elevated, buyers are cautious, and listings can sit longer than expected. Faced with that reality, a growing number of people are asking the question unprompted. Should I rent my home instead of selling it?
Real estate analysts call this scenario the rise of the “accidental landlord.” It describes owners who set out to sell but turned to renting when they couldn’t secure the price they wanted. The trend is gaining momentum as affordability challenges ripple through the housing market.
It’s worth noting, for my clients protection and peace of mind, I always recommend the services of a professional management company if you are considering entering California’s rental market for the first time. Please feel welcome to reach out to me directly for my personal, local recommendations.
Why the Shift is Happening
In many areas, higher borrowing costs have cooled demand. Homes that might have sold quickly a few years ago now linger. For some owners, the choice becomes either lowering the asking price or testing the rental market. Renting may feel like a natural next step—but it is not without consequences.
1. Is Your Home a Good Fit for Renters?
Not all properties translate well to rentals. Distance is one issue: if you’re relocating out of state, managing maintenance can be difficult. Condition is another: repairs or upgrades may be needed before tenants move in. And location matters—some neighborhoods naturally draw renters, while others do not.
2. Are You Ready for the Responsibility?
Landlording is rarely the “set it and forget it” income stream many imagine. Calls for urgent repairs, chasing missed payments, and preparing the property between tenants all take time and money. A reliable reserve fund is essential.
3. Have You Counted the Costs?
Insurance premiums for landlords typically run higher than standard coverage. Hiring a property manager may eat into profits. And periods when the home sits empty can leave you covering the mortgage alone. These expenses add up quickly.
A Balanced Approach
For some households, renting can provide breathing room while waiting for the market to improve. For others, it can introduce new financial and personal stress. One alternative is to revisit your selling strategy—sometimes adjusting the price or relaunching with a fresh approach is enough to bring new buyers to the table.
The TakeAway
Becoming a landlord is a significant shift, and it’s worth pausing before making the leap. For the right property and the right owner, renting can be a viable path. But for many, the costs and responsibilities outweigh the benefits. Clear eyes, careful planning, and trusted advice are essential in deciding which path is best.