Clay Spence never really wanted tobe a landlord.
Lately, though, it’s begun to feel like the only sensible option.
Spence, a 27-year-old financial analyst, lives east of Orlando in Florida’s Brevard County.
It seemed like an idyllic outpost for a remote worker like Spence.
“We probably won’t see those rates again,” Spence tells me.
The builder lavished on them sweeteners like a price cut and amortgage rate buydown.
But what to do with the old place?
So he decided to list the home for rent.
He figured that finding good tenants and handling the odd maintenance request would be worth the headache.
Their ranks could grow with the uptick inreturn-to-office mandates.
Spence tells me renting out his old home has been a cumbersome, multistep process.
Homeowners have two options when it comes time to move: sell the house or rent it out.
During the high-flying days of 2021, the answer seemed like a no-brainer: Take the money!
Mortgage rates followed, putting the brakes on the runaway market.
No wonder would-be sellers are turning to the rental market instead.
There are, however, some ways to get an approximation.
Parcl Labs, a real estate analytics firm, has also devised a useful proxy.
The percentages were even higher for sellers who listed from May through August.
In Houston, the share of accidental landlords peaked in July at nearly 9% of all sellers.
In June, Phoenix surpassed 15%.
Some accidental landlords may not even bother trying to sell their original home.
His timing couldn’t have been worse.
He’s alsosoured on Austin too much traffic, too expensive, too hot.
He recently got an in-person job in his hometown of Phoenix, where he’ll be moving soon.
“I’m going to rent it,” Ryan tells me.
“They’ve ended up in a situation where they can’t sell,” Story tells me.
Being a landlordisn’t all it’s cracked up to be, either.
Property managers caution that homeowners may not be prepared for theunexpected costsand headaches of converting their homes to rentals.
On the other hand, small-time rental owners have never had more tools at their fingertips.
Other startups allow rental owners to outsource annoying tasks like rent collection and bookkeeping.
“Not everyone in the world is cut out to be a landlord,” Story tells me.
However, he adds, “being an accidental landlord can be one of the biggest blessings.”
Despite his hesitations, he eventually opted to be a landlord.
And he’s been grateful to have a home to return to in Nashville.
They own.'"
James Rodriguezis a senior reporter on Business Insider’s Discourse team.
