Accidental Landlords are on the Rise in 2025

Colorado Property Management, Industry News

For a few years now, the trend in the market has been intentional. Intentional investors buying homes with for the purpose of using them as a rental. Whether first-time investors or seasoned veterans, many chose to venture out and expand their portfolios. However, now as we move into the second half of 2025, it feels as though the winds have changed, and once more we find ourselves in a market flooded with those who had to change their plans: aka Accidental Landlords. So what is an accidental landlord and why are we seeing more of them in the marketplace? Make no mistake, the term “accidental” doesn’t reference a mistake or something negative. It merely points to a shift behind the driving reason property owners are choosing to enter the rental market from intentional to circumstance.

Defining Accidental Landlords

The term “accidental landlord” simply refers to those who didn’t buy a property with the intention of renting it out to begin with. Their choice to put their property on the rental market stems purely from circumstance, a change of plans needed to meet certain goals. A move, job relocation, family or other personal changes, or, as is the case with many homeowners in today’s market, the inability to sell their home.

According to Realtor.com, homes are leaving the for sale market with growing speed, with delistings up 35% from the same time last year. As sellers cling to post-covid pricing amidst rising interest rates, more and more homes just aren’t selling. Buyers have options, a notable shift from previous years, affording those who do qualify to buy greater negotiating power and leverage. The result? Some homes aren’t selling, leaving many homeowners scrambling for one of three options: delist and wait it out, lower their price, or convert their property into a rental. That third option naturally results in accidental landlords.

 

The Current Market

Our team is seeing this play out on a daily basis. Homeowners are scrambling, unable to sell their homes and needing another solution quickly. And perhaps the biggest dividing factor between accidental landlords and intentional investors is experience. Preparing for something you didn’t plan for isn’t always easy, and the stress of trying to find a solution to that problem builds frustration. As a result, many accidental landlords turn to property managers like Real Property Management Colorado for assistance rather than trying to figure things out solo.

While overall, the majority share belongs to intentional investors, it’s hard to ignore the rise in those who choose to rent their homes as a backup plan instead, especially here in Colorado.

 

How This Affects The Market

The uptick in accidental landlords has implications across the entire landscape of the rental market, from tenants to owners to property managers, too. For tenants, it means increased options. More homes enter the rental market every day, allowing them to pick and choose at their discretion. It also means more inexperienced landlords, which can impact maintenance and management quality.

The increased supply over demand also affects rents as a whole. More supply means prices go down. While overall rents are still higher than they were previously, gone are the days of 5-6% increases year over year, which means landlords need to be prepared for more modest rates, think 1-2% increases instead.

For landlords and other investors, the rise in accidental landlords means more competition, too. This calls for a more competitive strategy, especially when it comes to filling vacancies, including aggressive price reductions, upgraded amenities, rent discounts, and other concessions.

For property managers, it means an uptick in lead flow and a boosted need for education. Accidental landlords are significantly more likely to hire a professional to help manage their property. These clients generally need more assistance with questions and understanding the process from start to finish. At Real Property Management Colorado, we’ve made our process as smooth and simple as possible. Our team is always available to help answer any questions, from tenant screening to maintenance requirements to accounting practices and more. We have the tools, the knowledge, and the insight to help rental property owners from every walk of life, including those who didn’t plan on becoming landlords from the start. Contact us today about our property management services in Denver, Colorado Springs, and Northern Colorado today!

Couple in a Property Managers office shacking hands with the Property Manager over signed papers

The rise of accidental landlords marks a seismic shift in the rental landscape. These owners may not be strategic investors, but they still mark an important dynamic that must be accounted for. While they may lack scale or experience, they’re reshaping competition, supply, and service demand in the rental market. For renters, property managers, landlords, and policymakers alike, understanding this evolving cohort—and its motivations—is vital. It’s not just numbers changing, it’s who owns rentals and why they do. And our team is ready to assist these property owners and more throughout every step of the way!

 

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