The surprising new wave of modern-day landlords

Vishakha Mathur never imagined becoming a landlord. But when a new job meant a move to New York City in 2024, she decided to make the leap: Rather than sell the Boston condo she’d bought in 2023, she rented it out.

“Since it was my first time, a lot of things surprised me,” she admits. The biggest curveball was when her tenants stopped paying rent, resulting in an eight-month eviction process. Another shocker was the cost of repairs. “Fixing a leak was more expensive than I expected,” she says. Add in a property manager to help her navigate this new enterprise, and the payoff of becoming a landlord has so far been minimal: “I break even each month.”

Mathur is part of a new wave of landlords entering the market who are reshaping what owning rentals looks like. One survey by rental platform Avail of nearly 2,000 users found that 53% became landlords in the last five years, with the most (17.4%) entering the market just last year. Although 58% purchased a property specifically to rent out, one-third backed into this business by renting out their former residence. An extra 12% became landlords through indirect paths (say, after inheriting a home), while one in four started a business with a family member.

“We fell into it,” says Hilary Reiter Azzaretti, whose fiancé moved in with her in 2022. Rather than sell his condo in the ski town of Park City, UT, they rented it out. “It just didn’t make sense to part with it when it’s such a solid investment and with the Olympics coming back in 2034.” Their gamble proved so successful that they’re now considering buying a second rental property in Italy.

Many of today’s “accidental landlords” feel like they’ve stumbled on a goldmine. Still, the learning curve can be steep. “I never expected how often guests forget things or how often things disappear,” says Misty Valdez, who has bought two short-term rentals in Broken Bow, OK, in the past two years. “I’m still not over the missing spoons.”

Should you become a landlord?

Landlords have received a lot of flak lately. President Trump announced a ban on institutional landlords buying homes, blaming them for the current housing crisis. The reality, though, is that large investors with 100+ homes own less than 1% of US real estate; 66% is owned by landlords with just one or two properties.

If you’re interested in becoming a landlord, there are plenty of ways for beginners to break in. No clue how to crunch numbers? Platforms like Rent To Retirement show listings that break down initial output, cash flow, and ROI. Don’t want to be on the hook for tenant gripes and leaky faucets? BiggerPockets’ property manager database can help you find someone to do the dirty work. Can’t afford an entire rental? Purchase a slice of one by joining a real estate investment club.

Although profits from rentals may not make you rich overnight, today’s landlords are often okay with that, seeing this venture as more of a way to broaden their financial holdings for the long haul. “When friends or family ask why I don’t just sell and move the money into stocks or something else, I explain that this is part of my diversification,” says Mathur. “It’s not about maximizing profit. It’s about keeping options open, balancing risk, and having a mix of financial and lifestyle flexibility. If I ever move back to Boston, it gives me a place to land. And if my circumstances or goals change, I have the flexibility to sell later and use that equity toward a home wherever I end up.”