By Mike Lentz | The Mike Lentz Team - Keller Williams Realty
Renting can work for some homeowners, but it’s a serious commitment with legal obligations and ongoing costs. Before you decide to rent out an unsold house, understand what being a landlord actually requires. In South Jersey, the decision depends on your market conditions, pricing strategy, and whether you’re truly prepared for the hands-on work of property management.
Selling your house is a big step. You want it to go smoothly. And with houses taking a little longer to sell these days, renting might start to sound like a nice backup plan. When you rent out unsold house properties, you’re taking on more than just a temporary solution-you’re becoming a landlord with all the responsibilities that come with it.
But the reality is different. While renting can work well for some people, it’s also a big commitment. Before you decide, it helps to see the whole picture first.
Why Some Sellers Are Deciding To Rent Out Unsold House Properties
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. Others expected a certain price buyers didn’t respond to. 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. The decision to rent out unsold house properties often happens when sellers don’t have the right pricing or marketing strategy in place from the start.
Where Sellers Who Rent Out Unsold House Properties Are Most Common
Parcl data shows where these “accidental landlords” are most common. These are owners who planned to sell but decided to rent out an unsold house instead:
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. 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 and what strategies work best. We 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. Part of making an informed decision is understanding what renting your house would actually take.
What It Means To Rent Out Unsold House Properties as a Landlord
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. 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.
The Hidden Costs of Being a Landlord
There are expenses beyond regular maintenance and repairs, too. According to Bankrate, these are a few of the biggest:
- Insurance premiums (landlord insurance typically costs about 25% more than a standard homeowners policy)
- Management fees (if you hire a property manager, they usually charge around 10% of the rent)
- 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 about pricing and how to market your house. Nailing those details from day one helps your house make a great first impression. Then 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.
If you’re on the fence about whether to rent out unsold house properties, let’s sit down and compare what selling and renting would each look like for you. If you want to talk through what this means for your situation, schedule a quick call and we’ll walk through it together.
For the full picture in your county, see our county market reports for Camden, Burlington, Gloucester, Salem, and Cumberland counties.
