Selling your house is a big step, and you want it to go smoothly. And with houses taking a little longer to sell these days, renting it out might start to sound like a nice backup plan.
But the reality is, while renting can work well for some people, it’s also a big commitment. So before you decide, it helps to see the whole picture first.
Why Some Sellers Are Deciding To Rent Instead
Lately, some sellers are choosing to hang on to their houses and rent them out instead. According to Parcl, around 9% of homes for rent right now were previously up for sale.
Here’s why.
Some homeowners put their houses on the market expecting a faster process than they got or a certain price buyers didn’t respond to. And when things didn’t go exactly as planned, they decided to rent instead. As Kara Ng, Senior Economist at Zillow, explains:
“Bargaining power is tilting toward buyers and homes are taking longer to sell, making renting out a property one way to buy time rather than compete aggressively on price.”
But here’s the important distinction. Just because some sellers are choosing to rent doesn’t mean selling isn’t working. In many cases, the difference comes down to how well a house is priced, prepared, and marketed for today’s buyers.
Parcl data shows where these “accidental landlords” – owners who planned to sell but decided to rent instead – are most common (see graph below):
They make up around 17% of homes for rent in places like Sherman and Houston, TX, but less than 4% in markets like Des Moines, IA and Bloomington, IN.
That’s a pretty big difference. And it shows why you have to know what’s happening in your neighborhood. Your market, your asking price, and your strategy all play a role in how your sale goes.
A local agent can show you how houses like yours are selling, what strategies work best, and help you weigh your options – not to push you to sell, but so you at least have the full picture based on today’s market. And part of making an informed decision is understanding what renting your house would actually take.
What Being a Landlord Actually Looks Like
While renting might sound like easy passive income on paper, in practice, it’s a hands-on job with rules to follow. As Invest West Management puts it:
“Even if you never intended to become a landlord, the law still sees you as one — and you must meet all legal obligations that come with that role. This often includes registering the tenancy, providing tenants with certain disclosures, and ensuring the property meets safety standards.”
You’d also be the one chasing missed rent payments, fixing damage between tenants, and covering unexpected repairs. Not to mention fielding weekend calls about leaky dishwashers or broken AC units.
There are expenses beyond regular maintenance and repairs, too. According to Bankrate, these are a few of the biggest:
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Insurance premiums (landlord insurance typically costs about 25% more than a standard homeowners policy)
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Management fees (if you hire a property manager, they usually charge around 10% of the rent)
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Gaps between tenants, when you pay the mortgage without rental income
How To Give Your House a Strong Start
If you want to be a landlord and you’re prepared for the responsibility, renting may be a great fit. But if you’d really rather sell, don’t let today’s market convince you that you can’t.
A great agent can make it happen. The key is having an open conversation up front with your agent about pricing and how to market your house. Nailing those details from day 1 helps your house make a great first impression, so renting doesn’t have to be your fallback.
Bottom Line
Renting can be a good fit for the right person with the right house, but it isn’t the only option. A smart sales strategy can help your house stand out to buyers from day one.
So, if you’re on the fence, a local real estate agent can help you compare what selling and renting would each look like for you.
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