How Return-to-Office Policies Could Create a New Wave of Accidental Landlords

Intro: Return-to-office policies are forcing remote workers to rethink their living situations. If you bought a home far from the office, you may now be facing a big question. Do you sell or rent it out? In this article, we’ll guide you through some key steps to decide which path makes the most sense for you.

Why Are Homeowners Facing the Rent-or-Sell Dilemma?

When “remote work” became the buzzword in 2020, many workers jumped at the chance to trade cramped city apartments for homes in quiet suburbs or sunny retreats miles away from their office’s front door. Fast forward to 2025, and the remote work dream is starting to fade as companies and government agencies call employees back to the office.

Big Companies Mandating Office Returns – What It Means for You

Big names like Amazon, Disney, and JP Morgan are making it clear that they want their employees to head back to the office setting. In January, an executive order was signed mandating that all federal agencies work to end their remote work arrangements.

Should You Sell or Rent? Key Considerations

Now, homeowners who took a chance on distant locales could be facing a dilemma. Should they sell and cut their losses, or hold on to their investment and become accidental landlords? 

If you’re in this situation, read on to learn how to evaluate your options and decide whether you should consider selling or renting.

What’s an Accidental Landlord? (And Are You One?)

Accidental landlords are rental property owners, but they didn’t set out to become landlords intentionally. They didn’t buy the property with visions of passive income or portfolio growth in mind. They simply ended up renting out their homes when life threw them a curveball.

How Homeowners End Up as Accidental Landlords

A sudden job relocation, an irresistible low mortgage rate, or market conditions that make selling unattractive can all nudge a homeowner into this unexpected role. Inheriting a property or merging households can also leave someone with an extra home to manage.

Now the return-to-office movement is adding a fresh wave of accidental landlords. For some, renting out their home could be a great way to generate passive income while holding on to their investment. For others, it could mean more responsibilities and potential headaches they weren’t prepared for, making the decision to rent or sell all the more challenging.

Expert Insight: What Property Managers Say About This Trend

This situation may seem like an unknown challenge for many, but as Kevin Ortner, CEO of Renters Warehouse explains, it’s not a new dilemma. 

“We hear this all the time from homeowners who have inherited a property, need to relocate for work, or have an ultra-low mortgage rate they don’t want to give up—but they also don’t have the time or experience to manage a rental property,” Ortner explains. 

“That’s why they turn to a property management company, either after trial and error or simply because they’re overwhelmed.”

For many homeowners, making the decision to rent out their home, rather than sell it, proves to be the best solution. But that’s a choice that each individual will have to make, and it’s one that should be done after careful research and much consideration.

When to Rent Out Your Home Instead of Selling

Here are some reasons that renting your home out rather than selling, might make sense:

1. You Have a Low Mortgage Rate

If you’re locked in a sub-4% mortgage rate, you’re enjoying a deal that few new buyers can claim in today’s high-rate environment. Selling would mean surrendering that advantageous financing for a likely much higher rate on your next purchase. Renting would allow you to continue benefiting from your low-cost loan and position yourself to capture long-term property appreciation. You’re leveraging a built-in financial edge that can help you to grow your wealth over time, so you might think twice before giving it up. 

2. The Local Rental Market Is Booming

Cities like Austin, Phoenix, and parts of Florida and the Carolinas are areas that saw a migration surge during the remote work boom, and the rental market remains steady. High demand means you can set competitive rents that can cover your mortgage, taxes, insurance, and maintenance, potentially resulting in steady profits. A strong local rental market can turn your home into an income stream, making it a compelling reason to hold on rather than sell.

3. You Want to Build Wealth Through Real Estate

Renting out your home could be a good step toward financial freedom. Renting out your home could mean extra cash flow, potential property appreciation, and tax perks that put more money in your pocket. And if you’d rather not deal with leaky faucets at midnight, you can always outsource the landlord headaches while still reaping the rewards.

4. You Plan to Move Back or Need a Safety Net

Not every relocation is permanent. If there’s a real possibility you might return to your current area, or if you simply want to keep a financial safety net, renting out your home could be a smart option. This strategy preserves your investment and gives you the flexibility to navigate life’s unpredictability without permanently severing ties with a neighborhood you know well.

When Selling Might Be the Better Option

Wondering if it might make more sense to sell rather than rent your home? Here are some situations where selling your home might make more sense:

1. You Need Cash for Your Next Home

If you’re eyeing a new property in a pricey market, the equity in your current home could be the key to making it happen. Selling could give you a cash boost, especially if there’s a solid appreciation in value. This extra capital can help you secure a competitive offer on your next dream property.

2. Rental Income Won’t Cover Your Expenses

Renting might sound appealing until you crunch the numbers. If local rental rates are too low to reliably cover your mortgage payments, property taxes, insurance, and ongoing maintenance, you could be staring at a chronic negative cash flow. In this scenario, holding onto the property is a financial drain that can outweigh the benefits of rental income. Selling, in contrast, can free you from ongoing expenses that don’t contribute to your goals.

To better understand how to estimate and budget for your rental property, check out these tips to keep your finances on track.

3. You Don’t Want the Hassle of Managing Tenants

Being a landlord isn’t always the passive income windfall it’s made out to be. It comes with a host of responsibilities, like tenant screening, property maintenance, and legal compliance. If the day-to-day challenges of managing tenants seem more like a burden than a bonus, selling might be the smarter, more stress-free alternative. Of course, another alternative is outsourcing all of the work to a property manager; something that many landlords opt to do.

Not sure what’s fact or fiction when it comes to being a landlord? Check out 14 Tenant and Landlord Myths Busted.

4. The Market Is Prime for Sellers

Timing is everything in real estate. If you’re in a seller’s market where demand is high and prices are robust, selling now could allow you to lock in significant returns. Just keep in mind that by selling, you’ll also be forfeiting the potential future returns that you could have generated with your rental property. So it’s important to run the numbers and make sure you are clear on which option makes the most financial sense for you.

How to Decide – 4 Steps to Evaluate Your Home’s Potential

Knowing the numbers grounds your decision-making process and empowers you to negotiate better whether you decide to sell or become a landlord. Here are some concrete steps to help homeowners evaluate whether to sell or rent out their home:

1. Step 1: Calculate Your Home’s Equity

The first order of business is to figure out how much of the property you truly own, or your home equity. This is the difference between your home’s current market value and the mortgage balance you still owe.

Estimate your home’s market value using online tools or getting a professional appraisal. Then, subtract the remaining mortgage balance from the market value. This number tells you the portion of the property you own and can leverage. If the equity is high, selling might give you a big chunk of cash to invest elsewhere. But if it’s low or you’re not ready to sell, renting out the house could give you a steady income without giving up your property.

2. Step 2: Research Your Local Real Estate Market

Your decision to sell or rent shouldn’t be determined by your property’s value alone. It should also be influenced by other factors, including local real estate trends and rental demand. Is your neighborhood booming, or is it on the verge of a slowdown? Are buyers clamoring for homes, or are renters the real movers and shakers? Answering these questions will help you gauge whether now is the time to sell or if holding onto your property as a rental is the better choice.

Here are some of the local market trends that you should look into:

• High demand and limited inventory mean higher prices, which could make selling attractive. But when homes linger on the market and prices are cooling, you might not fetch as much cash from a sale.

• Look into recent price trends. Are home values rising steadily, or do forecasts suggest a potential dip? A rising market might reward you if you sell now, but it could also benefit you if you keep the property as you may be able to benefit from both long-term property appreciation and rental income. On the other hand, if the market appears to be in a plateau or decline, this may tip the scales toward renting. This will allow you to wait until the market conditions are more favorable before cashing in on your property, helping you to get the best price possible. You can rent the property out in the meantime.

• Consider the broader economic picture and demographic trends. Is the area attracting young professionals, families, or retirees? Are there new companies moving in? These can impact both home sale prices and rental demand and are often the sign of a growing economy.

• A low vacancy rate is a positive indicator of a strong rental market, meaning there’s steady demand for rental properties. This can translate into more stable and potentially higher rental income.

• Consider the local economy’s resilience to downturns. Areas with diversified job markets and steady growth are more likely to maintain healthy rental demand even during economic uncertainties.

Note that every housing market is different, and you’ll want to carefully conduct your due diligence before making the decision to rent or to sell. Market conditions can also fluctuate, which makes it important to make a careful and informed decision when it comes to renting or selling. 

Use the Renters Warehouse Research Center to check out real estate market trends in your area.

3. Step 3: Estimate Your Potential Sales Profit

Once you’ve established your equity, calculate what selling might net you. Remember that this isn’t just about the listing price, so consider the bottom line after all the selling costs are factored in. Research comparable home sales in your neighborhood to get a sense of what buyers are willing to pay. Then, subtract the inevitable expenses, such as agent commissions (often around 5% of the sale price), closing fees, repairs, and taxes, to see your actual profit.

4. Step 4: Calculate Rental Income & Expenses

If you’re considering renting your home out, you’ll need a solid projection of potential rental income. This is the money that’s left in your pocket after all the expenses are taken out of the rental check.

First, research local market rates. Use rental platforms, local listings, or chat with property managers to see what similar properties in your area are renting for. Next, set a realistic benchmark. If comparable homes in your neighborhood rent for around $2,000 per month, that’s your starting point.

The next step is to identify and break down the costs you’ll incur monthly or yearly to maintain your property as a rental. These include:

• Mortgage Payments

• Property Taxes & Insurance

• Maintenance and Repairs

• Property Management Fees

• Vacancy Allowance

• Utilities (if applicable)

After you get an estimate of your operating costs, you can calculate your net cash flow using the following formula:

Net Cash Flow = Gross Rental Income – Total Monthly Expenses

Example Calculation

If your gross monthly rental income is $2,000 and your total expenses come to $1,600, your net cash flow is $400 monthly, or roughly $4,800 annually.

Don’t forget that landlords may be eligible for tax deductions on operating expenses, mortgage interest, and depreciation. Depreciation can lower your taxable income, effectively boosting your net return even if your cash flow may seem modest.

Final Thoughts: Should You Sell or Rent?

The good news is that there’s really no right or wrong answer to the question of whether to sell or rent. It depends on your goals, risk tolerance, and financial reality. Crunch the numbers, chat with a few trusted experts, and be honest about how hands-on you want to be if you decide to go the landlord route.

Keep in mind that hiring a property manager could be a good alternative if you like the idea of building long-term appreciation and generating cash flow, without having to oversee the property yourself. While this situation might feel like it calls for a quick decision, take your time to look at all angles and consider what works best for your future. Whether you end up handing over the keys to a tenant or a buyer, making a clear, informed decision now can help you to choose the option that best fits your needs, saving you from second-guessing yourself later on.

Need Help Managing Your Rental? Renters Warehouse Can Assist!

Thinking about renting out your property but not sure where to start? Renters Warehouse is here to help. From setting rental rates to managing tenants, we make the process smooth and stress-free. Get your FREE rental price analysis to see how much you could be earning with your rental.