Tag: #BusinessInsider

The Accidental Landlord

The number of homeowners turning into accidental landlords is rising.

Sometimes sellers will say they’ve decided to rent their homes if the properties been on the market for what they’ve consider too long or if the offers they’re receiving aren’t what “they want.”

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

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. 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, some homeowners may believe that renting is a better option.

Let’s be honest, you can’t blame them for thinking about it. The rents that some properties can command are certainly enticing.

But here’s what you need to remember if renting your house has crossed your mind. If becoming a landlord wasn’t your original plan, 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? Do you have the time or the funds for that? The house you were attempting to sell “as is,” may not be suitable as a rental property until the improvements you’re trying to avoid making are completed.
  • 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
  • Calls from former neighbors with complaints about your renters, whether the calls are justified or not.

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: revisiting the pricing strategy on your house.

Bottom Line

Before you decide to rent your house, make sure to carefully weigh the pros and cons of becoming a landlord. If you do not have an active listing agreement with a real estate professional, please consider contacting us. A fresh set of eyes may offer a different perspective. The issue may not be the price. It could be marketing or other factors.

You can find us at 508-388-1994 or msennott@todayrealestate.com.

For many homeowners, the hassle (and the expense) of renting may not be worth it. 

Mari and Hank

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision.

What Happens Next

From rising home prices to mortgage rate swings, the housing market has left a lot of people wondering what’s next – and whether now is really the right time to move.

Some of our clients have also looked at the current political situation and have said they are waiting “to see what happens” before taking action.

While we can’t predict the political future — no one can — we can share with you what leading housing experts are saying about the market for the rest of 2025.

These insights will give you clarity – and a little more optimism than you might expect. Business Insider sums up the forecasts (and why they’re good news for you):

“As mortgage rates go down this year, affordability may improve slightly for homebuyers. Inventory is also expected to grow, which should help moderate price growth and make finding a home easier.”

Let’s break it down.

1. Mortgage Rates Should Come Down (Slightly)

While a major drop isn’t on the table, forecasters are calling for a modest decline in rates in the months ahead as the economic outlook becomes more certain. Based on the information we have right now, here’s a look at where they say rates should be by year-end (see graph below):

Even this slight decrease is a welcome change. A seemingly small decline can still help bring down your future mortgage payment and give you a bit more breathing room in your budget.

Just remember, everything from inflation to employment and broader economic shifts will have an impact on where rates go from here. So, don’t try to time the market. And do expect some volatility along the way.

2. Inventory Will Continue To Grow

Inventory has already improved a lot this year. A big portion of the growth the market has already seen is because homeowners are getting tired of sitting on the sidelines. They’ve tried the wait and see approach with rates, and it hasn’t really paid off. And at a certain point, you need to move no matter what the market is doing. This is one reason more homes have been listed lately. And experts say that should continue. As Lance Lambert, Co-founder of ResiClub, says:

“The fact that inventory is rising year-over-year . . . strongly suggests that national active housing inventory for sale is likely to end the year higher.”

If rate forecasts pan out as the experts say, that could be enough to tip some more sellers off the fence and back into the market – giving you even more options for your move.

3. Home Prices Are Moderating

As more homes hit the market, there will also be less upward pressure on home prices. Expert forecasts are still calling for growth, but the pace of that growth is slowing down as inventory climbs. The average of all seven shows prices will rise about 2% this year (see graph below):

That means you could finally get a little bit of relief from rapidly rising home prices. When you combine the forecast for healthier price growth with projections for slightly lower mortgage rates, that could mean more buying power in the months ahead.

Keep in mind, though, the housing market is hyper-local. So, this is going to vary by area. Some markets will see prices climbing higher. And some may even see prices dip a little if inventory is up significantly in that location. So, lean on a local agent for insights into what’s happening in your area.

Bottom Line

So, if you want or need to move this year, know that the experts say things should start looking up.

So, let’s connect via our new business cell phone numbers (508) 388-1994 [Mari] or (508) 338-9928 [Hank] so you can take advantage of any market shifts that work in your favor.

Talk soon…

Mari and Hank

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision.