A practical perspective from a local REALTOR® who has helped plenty of homeowners weigh both paths.
Deciding whether to rent out your home or sell it is one of the most common crossroads for Northeast Florida homeowners. I never pretend to be a property-management expert, but after guiding a lot of owners through this decision, I’ve seen exactly where the numbers usually shake out and where the surprises tend to show up.
Here is the straightforward version of what I walk people through when they are torn between becoming a landlord or taking advantage of current resale demand.
The Reality of Today’s Rental Market
Rents across Florida, including Duval, Clay and St. Johns counties, have mostly leveled off or pulled back a bit over the past year. Demand is still steady, but the big rent spikes of the last few years have cooled down.
In most Northeast Florida neighborhoods:
- Typical single family rents land around $1,900 to $2,200 depending on condition and location
- Vacancy times are a little longer than they were during the post-2020 surge
- Operating costs have climbed, especially insurance, property taxes and routine maintenance
Some owners still earn strong rental returns. Others discover that increased expenses, older home systems or higher HOA fees leave them with tighter margins than expected.
What Landlords Often Don’t Expect
These are the items that most homeowners underestimate until we walk through the details together.
1. Property Management Fees
Most full-service property managers in our area charge 8 to 12 percent of the monthly rent. On top of that you may see:
- Tenant placement fees
- Lease renewal fees
- Inspection or admin fees
Management can be worth the cost if you want hands-off ownership, but these numbers need to be part of the comparison when weighing renting against selling.
2. Tenant Risk and Turnover Costs
Even the best tenants create normal wear. Turnover is usually the expensive part. Expect costs like:
- Cleaning and patch-up work
- Yard touch ups
- Weeks without rent
- New leasing fees
- Potential rent reductions to fill the home faster
There is also the possibility of late payments or non-payment, which can affect cash flow.
3. Taxes, Insurance and HOA Fees
Two big factors many homeowners overlook:
- Losing your Homestead Exemption once the property becomes a rental. That change can increase the taxable value and remove the normal protections that limit yearly increases in assessed value.
- Higher insurance premiums and HOA fees for rental properties compared to primary residences.
These fixed costs can determine whether a rental produces a healthy return or barely breaks even.
4. Deferred Maintenance Becomes Immediate Maintenance
Once a tenant moves in, items you may tolerate as an owner become urgent repairs. Examples include:
- HVAC performance issues
- Roof concerns
- Appliance failures
- Water heater issues
- Minor leaks
- Exterior wear and wood rot that worsen in Florida humidity
If the home is older or has aging systems, expect more involvement or higher management costs.
So Should You Rent or Sell
Here is the honest version of what I see in Northeast Florida.
Homes in desirable neighborhoods often generate higher net returns when sold compared to the net income from renting once taxes, repairs, vacancy and management costs are factored in.
Homes that are dated, older or in slower resale areas sometimes work better as rentals, but only if the owner is prepared financially and mentally for the responsibilities involved.
Most owners who choose to rent do it because they plan to move back, want to build long-term equity or are not satisfied with the current resale value.
Most owners who choose to sell want certainty, simplicity and the ability to maximize equity now without future landlord obligations.
Quick Questions to Ask Yourself
If you answer yes to most of these, renting may be a good fit.
If you answer no more than once or twice, selling often makes more sense.
- Do I have enough equity to hold the home comfortably for several years
- Am I financially prepared for a few months without a tenant
- Would the property still cash flow after losing the Homestead Exemption
- Am I willing to handle repairs, decisions and occasional stress even if someone else manages the property
- Does the rental income clearly exceed taxes, insurance, HOA fees, maintenance and management
- Is the home already in rental-ready condition
- Would I be satisfied with a modest return if appreciation slows down
If your honest answers lean toward no, selling often creates a cleaner financial picture and far less stress.
My Recommendation
Before choosing a direction, compare two simple numbers.
- Net rental income over the next 12 to 24 months
- Net sales proceeds today
When I go through this exercise with homeowners, selling often comes out ahead after accounting for property taxes, insurance changes, HOA fees and tenant turnover.
If you want a breakdown based on your specific home and neighborhood, I can run numbers for both scenarios so you can see which option gives you the best outcome.
