Renting Your House Instead of Selling? Here’s What You Need to Know!

Renting Your House Instead of Selling? Here’s What You Need to Know!

Thinking about renting your house instead of selling? You're not alone! Many homeowners today are finding themselves in a tricky spot. Your house has been on the market, but you haven't received an offer you're comfortable with. Now you're left with a question that's becoming a growing trend: "Should I just rent it out instead?"

The industry has a name for this: "accidental landlord." As Yahoo Finance defines it, these are homeowners who tried to sell their house but couldn't get the price they wanted, so they decided to rent it out until the market improves.

What's Happening in the Market Today?

Right now, we're seeing more and more homeowners become accidental landlords. Business Insider explains why this is happening:

"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."

Essentially, higher interest rates have slowed down the housing market. Buyers are struggling with affordability, which means some listings are sitting on the market. If you don't want to lower your price, renting might seem like a great alternative.

But hold on! Before you jump into becoming a landlord, remember that it wasn't your original plan. There's a reason for that—it comes with more responsibility and risk than most people expect.

If you're considering this option, ask yourself these three critical questions first:

1. Can Your House Be a Profitable Rental?

Just because you can rent your house doesn’t mean you should. Consider these points:

• Are you moving out of the area? Managing a rental from a distance can be incredibly difficult.

• Does your house need major repairs before it's "rental-ready?" Do you have the time and funds to make those updates?

• Is your neighborhood one that typically attracts renters, and would it be profitable for you?

If any of these give you pause, selling might be the better move.

2. Are You Ready to Be a Landlord?

On paper, renting sounds like easy, passive income. The reality often looks more like this: late-night calls about a clogged toilet, chasing down late rent payments, and dealing with damage left behind by tenants.

As Redfin points out:

"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, there are many hidden costs that come with renting out your home, including:

• Higher Insurance Premiums: Landlord insurance typically costs about 25% more than a standard homeowner's policy.

• Management Fees: If you use a property manager, they'll likely charge around 10% of the rent.

• Maintenance & Advertising: You'll need to budget for regular upkeep and the cost of finding new tenants.

• Vacancy Gaps: You'll have to cover the mortgage and all expenses when no one is renting your house.

These costs can add up quickly. While renting can be a smart move for the right person with the right house, if you're only considering it because your listing hasn't gained traction, there might be a better solution.

We Can Help!

Instead of becoming an accidental landlord, let’s revisit your current strategy. As experienced real estate professionals, we can help you rework your plan, relaunch your listing at the right price, and attract the right buyers to get your house sold.

Don't let your listing sit on the market! Let us help you find the perfect solution for your situation.

Ready to explore your options? Contact us today!

Ken or Susan Rosengren 360.609.0226 KenRosengren@LucidoGlobal.com

#pnwPropertpros #lucidoglobal #Vancouverwa #PortlandOR #RealEstateSolutions #HomeSellingTips #SellYourHome #AccidentalLandlord #RealEstateAdvice #RealtorLife #HousingMarket #SellDontRent