Should You Rent Instead of Selling? What South Florida Homeowners Needs to Know

When the market shifts, a lot of sellers start thinking, “Well, if I cannot get my price, I’ll just rent it.” On the surface, that sounds simple... keep the house, let a tenant pay the mortgage, and wait until prices go back up. But the reality of being a landlord is an involved, long-term process, and it’s important to look at it from all angles before deciding.

Let’s start with the numbers.

Renting is only worth it if the rent covers your mortgage, taxes, insurance, HOA fees, ongoing maintenance, a reserve for the unexpected, and still provides a profit. (You are looking at this as a business, right?) Often, it does not.

Even if the rent looks close, you need to account for vacancies between tenants, repair costs, and the fact that rental income is taxable (though there can be tax advantages to having a rental property; always consult your CPA or tax advisor. What looks like “breaking even” often turns into a monthly loss once everything is added up. A rental property should not only support itself completely without you putting in extra money — it should actually make you money.

The Property Tax surprise.

This is one of the biggest things most homeowners don’t think of until I bring it up, and believe me, I’ve seen the “Wait, what??” reaction many times....

Many Florida homeowners who have lived in their home for years enjoy the benefits of the Homestead Exemption and the Save Our Homes cap, which keep property taxes relatively low. Once you move out and the property is no longer your primary residence, those benefits go away and property taxes will increase in the next tax cycle. If you have owned your home a long time, that can mean a huge jump right away.

As a general guideline, property taxes in Broward average around 2% of the assessed value, though this varies by city and by county, of course. Once the home becomes a non-homestead property, the assessed value resets closer to market value, and instead of being capped at 3%, it can increase by up to 10% per year going forward. Always confirm with your county property appraiser, since property taxation can be complex.

Insurance changes too.

Your homeowners policy must be updated from owner-occupied to investment property. That could mean higher rates, and in many cases, changing carriers altogether.

Don’t forget about capital improvements.

It is not just the small repairs like leaky faucets or broken appliances. Big-ticket items can pop up suddenly, like needing a new A/C system in the middle of summer, pool repairs, plumbing leaks, sprinkler motors, and all the unexpected costs of homeownership. On a longer timeline, roofs are a major factor in South Florida. Many are already aging, and when that time comes, a roof replacement can easily run tens of thousands of dollars.

As a landlord, you are still responsible for those costs. The rental income should not only cover day-to-day expenses, but also allow you to set aside reserves for these bigger ticket items. Going into debt to cover a repair is not a smart long-term strategy.

Legal and liability points.

In Florida, tenants have rights, just as landlords do. Both are covered under the Florida Landlord and Tenant Act. If a tenant stops paying or causes problems, which we all hope never happens, the eviction process can be expensive and time-consuming. You cannot simply “kick them out.”

The lifestyle question.

Do you actually want to be a landlord, or are you just looking for a band-aid because you feel the market conditions are not what they were x number of years ago?

Being a landlord means taking calls about the A/C breaking in August, water leaks at 10 p.m., or broken appliances. It also means moving strangers into your home and accepting that they won’t care for it the way you do.

I have seen “dream tenants” leave behind damage that cost thousands to fix, or simply fail to maintain the home properly, leaving you with a mess that hurts resale value if not addressed. This is the kind of reality that glossy “rent it out” advice rarely talks about.

The reality check.

Here is the part most meticulous homeowners struggle with: your home will never come back to you in the same condition you handed it to a tenant, no matter how perfect that tenant looks on paper. Good credit, steady income, great job, glowing references, it does not matter. No one will take care of your home the way you do.

Emotionally, this can be hard. Financially, it has a cost too, because normal wear and tear (plus unexpected damage) is almost guaranteed. Once you rent your home, it is no longer your home. It is a business, and you have to treat it as such. And let’s be real: all kinds of things you are not prepared for are absolutely going to happen.

Market timing.

If you delay selling by renting, you are gambling that the market will improve later. But what if it does not?

The other option, and often the smartest one on a declining market, is to price the home correctly for today’s market. Not last year’s, not last month’s, but today’s reality. We don’t know where interest rates, buyer demand, cost of ownership, or home values will be a year from now. Holding onto the property may actually cost you more than adjusting your price and selling now.

The homes that sell are the ones that are positioned properly from the start. Sometimes that means adjusting the price, offering buyer incentives, or making small updates to stand out. Those options almost always end up being less stressful, less risky, and more financially sound than becoming a landlord by default.

The balanced view.

Renting can make sense in several situations. If the home cash flows well, if you are planning to build a rental portfolio long-term, or if you have a strong reason to hold onto the property, it can be a solid strategy. But for most sellers, renting is not the simple fix it seems.

I can say this confidently because I am not just speaking as a broker, I have been a landlord myself for over 20 years. I own rental properties, and I know both sides of the equation firsthand. This is not a theory or something I read in a book. I know the numbers, I know the benefits, I know the headaches, and I know the surprises that come with tenants.

My goal is to provide information so my clients can make the most informed decision. This is not about pushing anyone to sell; it is about helping you make the right choice. Renting can look glamorous on the surface, but it comes with a reality check that every homeowner should consider before going down this route.

If you are wondering whether renting makes more sense than selling, let’s sit down and look at the numbers together. That way, you can move forward with confidence, knowing you are making the best choice for your situation, not just reacting to the market.