If you’re hearing this from your sellers—“My home isn’t selling!”—you’re not alone.
In June 2025, homes across the U.S. spent a median of 53 days on the market, a 5-day increase from the previous year. With the current pace of sales slower than anticipated, many sellers are facing challenges. But instead of viewing this as a setback, what if we saw it as an opportunity?
It’s time to rethink the approach and talk to your sellers about becoming an “accidental landlord.”
Key Takeaways:
- Becoming an accidental landlord allows sellers to earn steady income, even in a slow market, thanks to rising rental demand.
- Sellers can tap into equity to buy a new home while earning rental income on their current property.
- Tax benefits like deductions for maintenance and property management can make renting more profitable.
- Realtors can guide sellers to explore renting as a smart alternative to selling and recommend property management services.
How Renting Out Homes in a Slow Market Can Provide Steady Income for Sellers
While the market may be slow, your clients aren’t out of options. Many sellers have been in their homes for several years, locking in historically low mortgage rates and building significant equity. In fact, the average U.S. homeowner with a mortgage holds approximately $313,000 in home equity. Rather than getting discouraged by delays in selling, they can explore a profitable alternative: renting out their homes.
With rental demand on the rise, these sellers are in a prime position to generate steady income. By turning their homes into rental properties, they can cover their mortgage payments (and possibly more) with rental income. Plus, this gives them the flexibility to hold onto their homes until the market shifts in their favor. Here’s the big picture:
- Average rent in the U.S. is currently $1,636 per month, up 0.9% compared to last year.
- In states like Florida (+8.2%), Arizona (+6.5%), and Georgia (+6.0%), rental rates have increased even more, creating an opportunity for sellers to rent out their properties at competitive rates.
Sellers with low mortgage payments can charge rent that not only covers their mortgage but also brings in positive cash flow.
Using Equity to Buy a New Home
If your sellers have owned their home for several years, they’ve likely built up significant equity. This equity can be leveraged to help fund a down payment on their next home, even if they don’t have the required minimum cash for a down payment.
By tapping into their home’s equity, sellers can:
- Buy a new home without rushing to sell.
- Hold onto their property, earn rental income, and wait for better market conditions or the right buyer.
This strategy gives sellers the ability to move forward without the pressure of a quick sale, creating more options for them in the long term.
The Tax Benefits of Becoming a Landlord
Many sellers don’t realize that renting out a home comes with a variety of tax advantages. Renting out a property can allow sellers to reduce their taxable income and keep more money in their pocket. Here’s a breakdown of some key tax benefits for landlords:
- Operating expense deductions: Landlords can deduct many common and necessary expenses related to managing and maintaining their rental properties. These include:
- Advertising costs: Expenses for listing vacancies and attracting tenants.
- Property management fees: Fees paid to a property management company or software subscriptions used for managing rental properties.
- Repairs and maintenance: Costs for keeping the property in good condition, such as fixing leaks, repainting, landscaping, and pest control.
- Insurance premiums: Payments for various types of insurance, such as fire, theft, and landlord liability insurance.
- Utilities: If the landlord pays for utilities like electricity, gas, water, and trash removal, these costs are deductible.
- Professional service fees: Fees for services like legal advice, accounting, and tax preparation related to the rental activity.
- Travel expenses: The cost of travel to collect rent, manage, conserve, or maintain the property (with specific rules about the purpose of the travel and how to calculate deductions).
- Home office expenses: If a part of the home is used exclusively and regularly for rental business purposes, home office expenses may also be deductible.
By using these deductions, sellers who become accidental landlords can lower their taxable income and keep more of their rental income. Plus, property depreciation can help reduce taxes even more, making renting out a property an even smarter investment.
How Realtors Can Help Sellers Become Landlords
As a realtor, you can play a key role in helping sellers turn a slow sale into a profitable rental situation. Here’s how you can help:
- Educate your sellers: Help them see their unsold property as an investment opportunity, not a failure.
- Explore renting options: Encourage them to rent out their home for monthly cash flow. This way, even if the home doesn’t sell right away, they’re still benefiting.
- Recommend property management services: Sellers don’t have to do it all themselves. Recommend a reputable property management company to handle tenant screening, repairs, and rent collection.
- Highlight the financial benefits: Show sellers how renting can cover their mortgage (and then some) and how they can use their home equity for a down payment on a new property.
Real-Life Example of an 'Accidental Landlord'
Mason Whitehead, a loan officer at Churchill Mortgage, had his own experience that illustrates how renting out an unsold property can be a smart decision:
"I had a house for sale that I bought and renovated. Unfortunately, the timing wasn’t great, and it sat on the market for three months without selling. The list price was nearly $400,000, and for a new buyer with a minimum down payment, their mortgage payment would have been about $4,000 a month, which is a lot in today’s market."
Despite the house not selling, Mason saw an opportunity. Instead of waiting for the right buyer, he decided to lease it out.
"I ended up leasing the property, and in just two weeks on the market, I had nearly 10 applications. I leased it out with positive cash flow. Even when a sale doesn’t go as planned, there’s still a solid opportunity to generate income while waiting for the market to turn in your favor."
Mason’s experience is a perfect example of how sellers can turn an unsold property into a source of income. Even in a slower market, becoming an accidental landlord can provide a winning solution.
Turn Stale Listings into Smart Investments
The market may be slower right now, but that doesn’t mean your sellers are without options. If you’ve had clients struggling to sell recently, talk to them about this opportunity. Together, you can transform their unsold property into a profitable investment that works for them in any market!
Need help? Reach out to us for more info on how to guide your clients toward becoming accidental landlords and maximizing their property’s potential.
