You’re not alone.

In a shifting market, fewer homes sell. What happens to the ones that don’t? Many homeowners decide to rent “just for a bit” and come back to the market later when things are more favorable. And suddenly, someone who never wanted to be a landlord is now living in Landlord Land.

Here’s what you really need to know before handing over those keys.

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1. Run the Full Numbers -- Not Just the Rent

Before you rent your house, please do the math.
Make sure you consider:

• Rising property taxes, especially if you will lose your homestead exemption. That alone can add thousands.

• Repairs and maintenance while it’s rented.

• HOA dues and community fees.

• Homeowners insurance (and please, do not cancel it).

• Post-tenant repairs, which are often higher than expected.

• The age and condition of major systems like the roof, HVAC, and water heater.

Now compare those costs against your monthly mortgage to ensure renting still makes financial sense.

2. The “Next Year Will Be Better” Myth

Many homeowners rent because they believe next year’s market will bounce back. Sometimes it does, but sometimes it declines further.

I’ve seen homeowners end up covering monthly losses, handling repairs, and watching their return disappear.
Sometimes, the smarter move is to adjust your price, get the home sold, and move forward.

Think of both your financial and emotional return.

3. Consider Your Equity

If you’ve built up equity, that money could be working for you right now.

Ask yourself:

• What could that equity earn in an interest-bearing account?

• Could you recast or refinance your new mortgage to lower your monthly payment?

• What’s the opportunity cost of leaving that equity tied up in a property that may not appreciate in the near term?

This isn’t just about short-term cash flow. It’s about long-term opportunity.

4. If You Do Rent, Know the Rules

If you move forward with renting, make sure you understand your obligations as a landlord.

• In Texas, check out the Texas A&M Landlord Guidelines if you plan to self-manage.

• If you prefer less stress, consider hiring a property manager. Most charge between 6 and 10 percent of monthly rent, but they handle collecting rent and maintenance calls.

Plan ahead for repairs, especially if your property has older mechanical systems. The average HVAC replacement in Central Texas runs between $7,000 and $15,000.

And again -- do not cancel your homeowners insurance.
I recently saw a homeowner cancel to save money, only for hail to hit weeks later. What could have been a $5,000 deductible turned into a $15,000 expense.

Final Thoughts

Becoming an accidental landlord isn’t always a bad thing, but it’s not a decision to make lightly.
Run the numbers, know your risks, and plan ahead before you decide to rent or sell.

If you want to talk through your specific options — sell versus rent, ROI versus risk — our team is here to help you make the smartest move for your future.

T. Kerr Property Group / Russ Phillips Team
People over production. Always.

Ranked the #1 residential sales team (excluding builders) in Williamson County, Texas, and proud winners and nominees for Best Real Estate Agents in both Round Rock and Georgetown, Texas.