The Memphis housing market, like many across the country, is shifting. Rising mortgage rates, increased inventory, and hesitant buyers are causing some would-be home sellers to hit pause on their plans. Instead of slashing prices or letting their listings sit stale, a growing number of homeowners are choosing a different route: becoming accidental landlords in Memphis.
Why Accidental Landlords Are on the Rise
When a house doesn’t sell, owners typically face three options:
- Delist and wait for market conditions to improve
- Lower the price until it sells
- Rent the home out and become a landlord
That third option — turning your home into a rental in Memphis — is becoming more popular, especially among owners who have already moved, changed jobs, or are holding out for a better sales price down the road.
Real estate research from Parcl Labs shows that in several Sun Belt cities, accidental landlords have increased by over 30% in the past year. Memphis is starting to follow that trend, with more owners choosing to rent out their homes rather than take a loss. These owners aren’t necessarily looking to build a real estate portfolio — they’re just trying to protect their investment and ride out the current market.
Who Are Accidental Landlords in Memphis?
Accidental landlords aren’t investors by design. Many of them:
- Have full-time jobs unrelated to real estate
- Are emotionally attached to the property
- Would prefer to sell, but market conditions won’t allow it
Instead, they’re navigating the world of Memphis landlord tips for new owners: adjusting mortgages, learning the rental process, and exploring things like landlord insurance or property management services. Some even find that their rent doesn’t fully cover the mortgage, but it’s a better alternative than a sale at a loss.
It’s important for these homeowners to understand that when you rent instead of selling your home, you’re not just delaying a sale — you’re becoming someone else’s landlord. That means new responsibilities, laws, and expectations.
What It Means for the Memphis Rental Market
This increase in accidental landlords is reshaping the Memphis rental market trends in 2025. Here’s how:
- Single-family rental inventory is growing — giving renters more options
- Rent growth is slowing slightly due to increased competition
- Institutional investors are shifting strategies to focus on build-to-rent communities instead of resale properties
Renters now have more access to homes that used to be owner-occupied. That also means Memphis landlords (accidental or otherwise) are competing for the same pool of tenants, so strategic pricing, great marketing, and solid tenant screening matter more than ever.
If you’re wondering, Should I sell or rent my house in Memphis? — you’re not alone. Becoming an accidental landlord may not have been your original plan, but with the right guidance, it could be a smart and profitable one.
Need help turning your home into a rental in Memphis? Contact 901 Real Estate Services for a free consultation and learn how we help accidental landlords make the most of their new investment.