If you are trying to sell your home in the Orlando or Central Florida area and have little interest, no offers and you’re starting to panic. Well, you’re not alone. According to Newsweek, “The Florida housing market is turning down fast.”
With properties sitting on the market for longer than usual in the greater Orlando area, we’re seeing property owners get creative and revert to the idea of renting out their property.
As Orlando’s best property management company, we are getting a lot of property owners inquiring about property management services and renting out their home. Many start by saying, “I currently have my home listed for sale and it’s not selling, so I would like to list it for rent as well and see how that goes.”
Well, as an expert Orlando property manager with over 15 years of experience, let me tell you why it is a BAD IDEA to list your home for sale and for rent at the same time.
Why You Shouldn’t List Your Orlando Home for Sale and Rent at the Same Time
1. Rental Listing Platforms Show Your For Sale Listing As Priority
Real estate platforms don’t allow a home to be listed for sale and for rent at the same time. For example, Zillow, Realtor.com, Trulia, and all of the major search platforms will not showcase both a sale listing and a rental listing.
Due to this, your sale listing will always show up over your rental listing, so prospective renters in the greater Orlando area will not be able to find your rental property. Which will significantly hurt your chances of renting out your property.
In addition, the local Multiple Listing Service (MLS) which real estate agents list homes for sale and for rent does not allow a property to be listed on both the sales market and the rental market.
2. Renters in Orlando & Central Florida Seek a Long-term Home
Tenants looking for a rental home in Orlando and Central Florida want stability—not a property that might be sold out from under them in a few weeks. According to Redfin, 1 in 6 renters will stay in the same rental home for 10+ years.
I have seen tenants back out of leases because they found out the property was also for sale. Imagine that, you’ve found your dream rental home, move in to the property and then your landlord wants to know your schedule for showings and/or potentially a move out date because the home is now pending. As you can imagine that would be a huge inconvenience.
3. Your Orlando Rental Agreement is a Legally Binding Contract
Once a tenant signs your rental agreement for your property, you’re legally obligated to honor it. If you are interested in selling your rental property, you may not be able to until your tenant moves out (or at least we recommend not selling until the property is vacant).
4. Decreased Perceived Value Of Your Orlando Property
Listing your Orlando home for both sale and rent sends mixed signals to the market, which can make your property seem less valuable to buyers and tenants.
5. Increased Vacancy Costs for your Orlando Rental Property
A vacant rental property in Orlando is the largest expense a landlord will incur and by trying to sell and rent at the same time, you risk longer vacancy periods which will cost you more money and delay income from your Orlando rental property.
What Does a Vacancy in Orlando Actually Cost You?
Here is an example breakdown of what a vacancy will cost you in the Orlando/Central Florida market:
So, let’s say your property has a $1,500/mth estimated rental rate and a $1,250 per month PITI (Principal / Interest / Taxes / Insurance) + plus utility expenses. A vacancy in Orlando will cost in terms of days on market:
- 15 Days = $750 in lost rent + $625 mortgage + $100 in utilities = $1,475
- 30 Days = $1,500 in lost rent + $1,250 mortgage + $125 in utilities = $2,875
- 45 Days = $2,250 in lost rent + $1,875 mortgage + $150 in utilities = $4,275
- 60 Days = $3,000 in lost rent + $2,500 mortgage + $200 in utilities = $5,700
As you can see, if your home is sitting vacant for 60+ days that is a huge missed opportunity and expense for you, the property owner.
Most Common Questions from Orlando Property Owners
• Should I use my Realtor to list and manage my property in Orlando/Central Florida?
You should not use your realtor to list or manage your property. With the sales market slow in Central Florida, we have seen an influx of realtors listing rental properties.
Realtors treat property management as a side gig but managing a rental property effectively isn’t something you can do part-time. If your agent is busy chasing home sales and large commission checks (your tenants, maintenance, and rental income, etc.) are a second thought.
• Do Orlando rental property management companies provide this type of service?
Some property management companies in Orlando offer this service and will list a property that is currently on the market for sale. However, a professional property manager will recommend removing it from the sales market. Explore our professional property management services, which we offer here.
• Have you worked with any Realtors who were frustrated by owners trying both strategies at once?
Yes, often listing your property for sale and rent simultaneously can cause frustration with both your realtor and property manager.
• What happens to the marketing and tenant screening process when a property is also listed for sale?
It is challenging to effectively market and syndicate a rental property in the Orlando market if it is currently listed for sale; however, the tenant screening process remains the same.
• How much can my property rent for in the Orlando area?
In the Orlando/Central Florida market, rental homes fluctuate in rental prices due to the variety of homes, property specs, and geographic area.
Many property managers in Orlando can give you a rental analysis, which allows you to see if it makes sense for you to rent your home. Contact our property management team to discover the potential rental income for your property. Get your FREE RENTAL ANALYSIS for your Orlando/Central Florida home.
The Best Strategy for Your Orlando & Central Florida Property
Instead of listing your Orlando home for both sale and rent at the same time, pick the path that is best for you and your goals:
- If your primary objective is long-term cash flow, renting it out with the support of a reputable Orlando property management company can turn your home into a steady income-producing asset.
- If you’re set on selling your Orlando area home then, just do that and focus on marketing, adjusting the pricing, and promoting it the right way to attract a buyer.
*Pro Tip: Just Don’t Do Both.
Turn Your Unsold Listing into a Profitable Rental Property
We work with homeowners, landlords, and investors every day, protecting and effectively managing their rental property assets. We evaluate market conditions, rental demand, and long-term ROI to help you enjoy a stress-free and hands-off rental experience in Orlando/Central Florida.
If your Orlando property is best suited for rental, we’ll manage everything from marketing to tenant screening, maintenance, and compliance, so you can sit back and enjoy true passive income.
Final Thoughts: Choose the Strategy That Aligns with Your Goals
Trying to rent and sell your home at the same time may feel like a way to keep your options open but in reality, it is a negative way to achieve a successful outcome. Instead, choose the route that best supports your long-term goals, and commit to it with the help of local experts.
If you’re interested in speaking with a professional property manager in Orlando or would like a free rental price analysis CONTACT our expert Orlando property management team today!
