In February 2025, Jim Kennedy and his wife listed their three-bedroom home in Bluffton, South Carolina, but it failed to sell at their desired price. Following friends' advice, they decided to switch to short-term rentals for six months, anticipating a better market in 2026.

However, after the tenants moved out, Jim was shocked to discover the house severely damaged. The bathroom area, in particular, was filthy and incredibly messy. "Owning a rental property is troublesome and complicated", he lamented.

The home of Jim and Lindy Kennedy. Photo: EXP Realty, Bluffton SC/Jennifer Pavelka.

With a sluggish housing market and buyers holding the upper hand, price reductions are no longer effective. Many sellers are becoming "reluctant landlords", much like Jim. Zillow data indicates that approximately 2,2% of rental listings in November 2025 were previously homes listed for sale – the highest rate since late 2022. In major cities such as Houston, this figure reached 4,2%, followed by Denver, Austin, and Tampa.

Shivani and Bryce Bailey, a couple in Dallas, offer another example. They listed their three-bedroom apartment in early 2024, but the buyer abruptly withdrew at the last minute. Their plans to purchase a new residence stalled because they could not sell their old home. Ultimately, the couple decided to rent out the property to cover monthly mortgage payments.

Becoming a landlord carries greater inherent risks than many realize. Neil Brooks, a real estate agent in Phoenix, frequently warns clients about legal issues. "You must mentally prepare for the possibility of having to evict tenants, or even being sued if they have an accident on your property", he advised.

Experts suggest that the current rental advantage belongs only to those who purchased homes during periods of low interest rates, where rental income sufficiently covers mortgage costs. For those who bought when interest rates peaked, renting out properties often means bearing losses.

Shivani and Bryce Bailey. Photo: Honey Rose.

Roderick Conrad and Suvimon Sunakorn in Maryland had to spend thousands of USD out of pocket to repair a washing machine and dishwasher for their tenants, while the rental income covered only a fraction of their ownership costs. "It's frustrating. I wish I had just sold it", Conrad shared.

The increased supply from these "reluctant landlords" is also inadvertently cooling down the rental market. According to Zillow, single-family home rental prices in the US in February increased by only 2,6% compared to the same period last year, marking the slowest increase in nearly a decade.

Following their horrific experience with tenants, the Kennedy family decided to relist their home last December at a lower-than-expected price. This time, they are determined to sell at any cost to escape the nightmare of "renting out".

Nhat Minh (According to WSJ)