Renting Instead of Selling?
- Charles "Skip" Geiser
- Sep 4
- 8 min read
If your house is on the market but you haven’t gotten any offers you’re comfortable with, you may be wondering: what do I do if it doesn’t sell? And for a growing number of homeowners, that’s turning into a new dilemma: should I just rent it instead?
There’s a term for this in the industry, and it’s called an accidental landlord. Here’s how Yahoo
Finance defines it:
“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 Is Happening More Often Right Now
And right now, the number of homeowners turning into accidental landlords is rising. Business Insider explains why:
“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."
Basically, sales have slowed down as buyers struggle with today’s affordability challenges. And that’s leaving some homeowners with listings that sit and go stale. And if they don't want to drop their price to try to appeal to buyers, they may rent instead.
But here’s the thing you need to remember if renting your house has crossed your mind. Becoming a landlord wasn’t your original plan, and there’s probably a reason for that. It comes with a lot more responsibility (and risk) than most people expect.
So, if you find yourself toying with that option, ask yourself these questions first:
1. Does Your House Have Potential as a Profitable Rental?
Just because you can rent it doesn’t mean you should. For example:
Are you moving out of state? Managing maintenance from far away isn’t easy.
Does the home need repairs before it’s rental-ready? And do you have the time or the funds for that?
Is your neighborhood one that typically attracts renters, and would your house be profitable as one?
If any of those give you pause, it’s a sign selling might be the better move.
2. Are You Ready To Be a Landlord?
On paper, renting sounds like easy passive income. In reality, it often looks more like this:
Midnight calls about clogged toilets or broken air conditioners
Chasing down missed rent payments
Damage you’ll have to fix between tenants
As Redfin notes:
“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 Thought Through the True Costs?
According to Bankrate, here are just a few of the hidden costs that come with renting out your home:
A higher insurance premium (landlord insurance typically costs about 25% more)
Management fees (if you use a property manager, they typically charge around 10% of the rent)
Maintenance and advertising to find tenants
Gaps between tenants, where you cover the mortgage without rental income coming in
All of that adds up, fast.
While renting can be a smart move for the right person with the right house, if you’re only considering it because your listing didn’t get traction, there may be a better solution: Give us a call and revisit your pricing strategy first.
With our advice you can rework your strategy, relaunch at the right price, and attract real buyers to make the sale happen.
Bottom Line
Before you decide to rent your house, make sure to carefully weigh the pros and cons of becoming a landlord. For some homeowners, the hassle (and the expense) may not be worth it. This is something industry professionals are going to watch in the days ahead. If you want to stay up to date, let’s connect so you always have the latest information.If you have questions or want to talk about what builders are doing in our area, let’s connect.Want to find out what the market looks like where you’re buying? Let’s connect.
Today's Pensacola Realtors MLS Information Today's Active Homes For Sale Escambia and Santa Rosa County 3185 ^ (30) Above $600,000 663 ^ (5) Between $500,000 - $599,999 193 v (1) Between $400,000 - $499,999 371 ^ (3) Between $300,000 - $399,999 882 ^ (4) Between $200,000 - $299,999 761 ^ (11) Between $100,000 - $199,999 277 v (2) Under $99,999 38 v (2) RED is UP Black Remained the Same Green is DOWN Current Mortgage Rate 30 YR Fixed 6.49% (-04%) 15 YR Fixed 5.85% (-.03%) |
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Think Your Smart?
Done...What Most Religions Don't Tell You About The Bible
Cary Schmidt's Introduction of Done  |
Time is Short...
God gave His only begotten Son Jesus Christ for us to be saved from this sinful world. Time is at Hand and while it is not too late, secure your salvation. If you don’t know how to secure salvation, this simple easy to follow “ABCs of Salvation” will guide you on how to accept genuinely Jesus Christ as your Lord and personal Savior to secure salvation for you to surely go to Heaven. But before going through the steps you might ask: Why do I need to Secure Salvation? And why do I need to go to heaven? This because:
So how to secure salvation?
A – ADMIT that you are a SinnerWe all have sinned.
19 For as by one man’s disobedience many were made sinners, so by the obedience of one shall many be made righteous. 20 Moreover the law entered, that the offence might abound. But where sin abounded, grace did much more abound: 21That as sin hath reigned unto death, even so might grace reign through righteousness unto eternal life by Jesus Christ our Lord. And no matter how you try to be good, you will still fail.
You are still unclean.
B – BELIEVE on the Lord Jesus ChristGod gave His only begotten Son Jesus Christ to save us. And through His blood, our sins washed away.
Only by His grace and not by works.
There is no other way but only through Jesus Christ alone.
God commended His love toward us.
If we have Jesus Christ living in us, we will live eternally.
By the blood of our Savior Jesus Christ
C – CONFESS with your mouthNow that you accepted that you are a sinner and believe in the Lord Jesus Christ, confess with your mouth your sins and that you believe in Him. Let Him come to you and accept Him as your Lord and personal Savior.
Now do the Sinner’s Prayer: Holy, thoughtful, gracious, and Heavenly Father, I recognize and acknowledge I am a miscreant not deserving of your grace and I ask forgiveness of my sins. I know your son is the truth the light and the way, I give myself freely to His control and welcome him into my heart. I ask you to walk with me and guide me, teach me your way and your truth. Thank you for the gift of your Son’s sacrifice on the cross that I may live. Thank you for your forgiveness and for accepting me as your child. Amen. Now that you are saved and you have Jesus Christ living in you, you should not stop there. What is next? Follow Him, His words, submit yourself, and don’t forget to D – DEPART from evilThis is not part of the step to secure salvation but it is a way of proving yourself that you are now truly of Christ. Forget your past and follow Him.
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This article provides information and opinions but is not meant as investment advice. Skip Geiser LLC, Charles "Skip" Geiser or Plum Tree Real Estate Marketing does not assure the accuracy or completeness of the information or opinions presented here. It is important to conduct your own research, due diligence, and seek professional advice before making any investment decisions. Skip Geiser LLC, Charles "Skip" Geiser or Plum Tree Real Estate Marketing is not responsible for any loss or damage resulting from relying on the information or opinions in this article.
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