Becoming an “Accidental Landlord” Doesn’t Have to Be an Accident Waiting to Happen

In today’s shifting market, more homeowners are finding themselves in a tricky spot. They want to sell, but the offers aren’t coming in—at least not at the price they need or expected.

High interest rates have cooled buyer demand in many areas. Inventory levels are shifting. And sometimes, it just comes down to bad timing. Whatever the reason, more listings are sitting, and that can create real problems for sellers who need to move or are counting on the proceeds from a sale.

When selling doesn’t make sense, renting can feel like a solid backup plan. You keep the property, find a tenant, and let the rent help cover the mortgage. In some cases, you might even pocket a bit of income each month. That approach is becoming increasingly common, especially among homeowners who never set out to become landlords.

If Selling Feels Out of Reach…

If you’re in this situation, you’re not alone. More and more homeowners across the country are finding themselves in the same boat, and as Yahoo Finance recently reported, there’s even a name for it: accidental landlords.

These aren’t seasoned investors or aspiring property moguls. They’re everyday homeowners who had to move for a job, couples who outgrew their first home, empty nesters with too much space, or people who inherited a house they don’t plan to live in.

And while renting the place out may seem like an easy solution, many quickly learn that becoming a landlord isn’t always as simple—or as profitable—as it might appear.

If you’re thinking about going this route, it’s worth taking a beat and considering a few important factors before diving in.

…Here’s What to Know Before You Rent Instead of Sell

Renting out your home might seem like the obvious solution, especially when the market isn’t working in your favor. But it’s not as simple as collecting a check on the first of each month and calling it a day.

Here are a few things to keep in mind before you hang that “For Rent” sign:

• You’ll have competition. You’re not the only one thinking about renting instead of selling—and that’s worth considering. Other homeowners in the same situation are likely weighing the same option. On top of that, you’ll also be up against experienced landlords and investors who treat their properties like a business. They know how to market, screen tenants, and manage the day-to-day better than most first-timers. In a competitive rental market, that can make a big difference.
• There will be work involved. Even with great tenants, things break. Toilets clog. Furnaces quit. Dishwashers leak. Unless you’re hiring a property manager (and factoring that cost into your math), you’ll be the one answering the call, arranging repairs, or showing up with a wrench in hand.
• Rent isn’t always paid on time. A solid application and a good credit score don’t always guarantee consistent payments. Hopefully your tenant will pay on time—but even a few days’ delay can throw off your finances if you’re relying on that money to cover the mortgage. Worse, if payments stop altogether, you could find yourself covering the gap out of pocket while navigating the eviction process, which can be slow, stressful, and expensive.
• Expect some wear and tear—or worse. Some tenants take great care of a property. Others, not so much. And even responsible renters can leave behind dings, stains, or scuffed floors that go beyond normal use. In less ideal situations, a contentious lease ending or unpaid rent could lead to intentional damage. Always budget for touch-ups and repairs between tenants—sometimes even a full refresh.
• Taxes can get tricky. Rental income is taxable, but you may also be eligible for deductions on expenses like repairs, property management, and maintenance. That said, one important detail often catches people off guard: the capital gains exclusion.

  Current IRS rules allow you to exclude up to $250,000 in profit from the sale of your primary residence (or $500,000 for married couples filing jointly), but only if you’ve lived in the home for at least two of the past five years. Renting out your property for too long can disqualify you from that exemption.

  So if you’re planning to rent it out now and sell later, it’s worth mapping out a timeline—and talking to a tax professional—so you’re not hit with a larger tax bill than expected when it’s time to sell.

• Know the local laws. Landlord-tenant laws vary widely by location, and they tend to favor tenants in most areas. From how much you can collect for a security deposit to how eviction proceedings must be handled, there are rules you need to know—and follow. Getting it wrong, even by accident, can land you in hot water.

  If you’re not familiar with local regulations, get familiar. Or work with someone who is.

Turning “Accidental” Into Intentional

While you may not have planned on becoming a landlord—it doesn’t mean it has to turn into an accident waiting to happen.

If you’re going to rent out your home, go into it with your eyes wide open. Think beyond the short-term fix or the monthly rent check and take the time to look at the full picture. What could go right? What could go wrong? Are you prepared for worst-case scenarios—and set up to make the most of the best ones?

Treat it like a business venture, not a last-minute backup plan. That means having a solid plan in place for maintenance, repairs, tenant screening, lease terms, and financial gaps. The more seriously you take it from the start, the better chance you’ll have of avoiding stress later.

And before you commit to renting, have a conversation with a local real estate agent. They can help you weigh your options clearly—whether renting truly makes sense right now or if selling could actually be the better move, even if it doesn’t seem that way at first.

The Takeaway:

It’s not always possible to sell at the price or pace you want in today’s market. That’s why more homeowners are becoming “accidental landlords,” choosing to rent out their home rather than sell it.

But renting isn’t a set-it-and-forget-it solution. Between managing tenants, handling repairs, and navigating taxes and timelines, it’s more work—and more risk—than many expect.

If you’re thinking about renting your home, don’t rely on gut instinct or friendly advice alone. Think like an investor. Consider the pros, the cons, and the what-ifs. And most importantly, talk to a real estate professional who can help you make the most informed—and intentional—decision possible.