If your apartment is on the market but you haven’t gotten any offers you’re comfortable with, you may be wondering: what happens if it doesn’t sell? For a growing number of New York apartment owners, that’s turning into a new dilemma: should I just rent it instead?
There’s a term for this in the industry—it’s called becoming an “accidental landlord.” Yahoo Finance defines it as:
“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 More Often Right Now
And right now, the number of apartment owners 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 face today’s affordability challenges. That’s left some New York apartments sitting on the market longer than expected. If an owner doesn’t want to lower the asking price to spark interest, renting may start to look like a temporary solution.
But here’s what you need to remember if renting your apartment has crossed your mind: becoming a landlord wasn’t your original plan. And in a city like New York, it comes with far more responsibility (and risk) than many people expect.
If you’re thinking about this route, ask yourself these questions first:
1. Does Your Apartment Have Potential as a Profitable Rental?
Just because you can rent it doesn’t mean you should. For example:
-
Are you moving to another borough—or even out of state? Managing tenants and maintenance from afar can be tricky.
-
Does the apartment need upgrades or repairs before it’s rental-ready? Do you have the budget and time for that?
-
Is your building even rental-friendly? Some NYC co-ops and condos have strict subletting rules that could limit your options.
If any of those make you hesitate, selling may be the more practical move.
2. Are You Ready To Be a Landlord?
Renting sounds like easy passive income on paper. In reality, it can look like this:
-
Late-night calls about plumbing issues
-
Tenants missing rent payments
-
Damage you’ll need to repair between leases
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 Considered the True Costs?
According to Bankrate, here are some of the hidden expenses of renting out your apartment:
-
Higher insurance premiums (landlord policies typically cost about 25% more)
-
Property management fees (if you hire a manager, expect around 10% of the rent)
-
Maintenance, repairs, and advertising to find tenants
-
Vacancies, where you’re covering the mortgage and common charges without income coming in
All of this adds up quickly—especially in New York.
A Smarter Option? Revisit Your Selling Strategy
While renting can be a smart move for some, if you’re only considering it because your listing didn’t get traction, there may be a better option: revisit your selling strategy.
A fresh approach—whether that means adjusting your pricing, updating your marketing, or timing a relaunch—can help attract the right buyers and get your apartment sold.
Bottom Line
Before you decide to rent your apartment, make sure you’ve carefully weighed the pros and cons of becoming a landlord. For many New York apartment owners, the hassle and expense simply aren’t worth it.
And remember—Who You Work With Matters! If you’re unsure of your next step, let’s connect. I’ll walk you through your options and create a strategy that works for your goals. If you’re thinking about selling (or even renting), contact me today.
