In today’s market, many homeowners in Indianapolis are asking the same question:
“Should I rent my house instead of selling it?”
With mortgage rates still hovering near 7%, the idea of giving up that low 3% rate you locked in years ago feels… painful.
Maybe your home didn’t get the offers you hoped for. Or maybe you’re relocating but don’t want to sell just yet.
Whatever your reason—if selling isn’t appealing, renting could be your most profitable alternative.
At T&H Realty Services, we’ve helped hundreds of homeowners become landlords—many of them reluctantly at first. And we’ve seen it pay off.
Let’s walk through the pros, the pitfalls, and what you need to know to make renting a win.
What to Know Before Becoming an "Investor"
If you find yourself in this position, there are several things to consider. Obviously, from our perspective, there’s no better place to put your money than real estate.
However, in spite of what you may hear, real estate investing is not passive income. Even if you hire a property manager, you will need to devote some time, and money, to ensure your asset performs well.
Even with a great Resident, certain things will always take up time such as:
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Your home will need prep work. No more squeaky burners or patchy drywall. Renters expect a professional-grade property.
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Maintenance is ongoing. HVAC systems fail. Toilets clog. It’s part of the game.
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There will be good years—and bad ones. Prepare for vacancies, big repairs, and unexpected expenses.
Why Renting Your Indianapolis Home Could Make Sense
1. You Can Generate Monthly Income:
Renting provides recurring revenue to help cover your mortgage, taxes, insurance, and more. Just remember: the market dictates the rent, not your expenses. Run comps, use our Rent vs. Sell Calculator, and stay realistic. While we are seeing lower positive-cash flow in Indianapolis, you can still see many long-term gains.
2. You’ll Keep Powerful Tax Benefits:
From depreciation to repair deductions to property management fees—rentals offer significant write-offs. A knowledgeable CPA can help you avoid costly mistakes and optimize your return.
3. You Stay in the Game for Long-Term Appreciation:
While price growth has slowed, Indianapolis real estate continues to appreciate steadily over time. Renting gives you a foothold in the market—and time to ride out any downturns.
The general, but very important statement I will make is:
If You Rent Your Home, You Need to Treat it as a Business
When you move out, your home will need work.
That mounted TV you’re planning to take? The giant holes left behind won’t patch themselves. And if the paint doesn’t match, you’ll need to repaint the whole wall—not just dab some leftover paint and hope no one notices.
That back-left stove burner you’ve ignored for four years? A paying resident won’t be so forgiving. It’ll need to be fixed.
Bottom line: Don’t treat your home like “just a rental.”
Treat it like a business—because that’s what it becomes the moment you hand over the keys. And like any business, you’ll need to invest in it to get a return. Not sure where to start? We put together [this guide] to help get your personal residence rental-ready.
Good Years. Bad Years. Budget for Both.
It’s easy to assume your rental will generate steady income like an annuity—but real estate doesn’t work that way. You’ll have some great years with no vacancies and minimal repairs. But you’ll also have years where the roof fails, the HVAC quits, and your tenant moves out in the middle of the night.
Plan for the worst. Hope for the best.
We recommend setting aside at least 6 months of rent in reserves. Some call it a SWAN fund—Sleep Well At Night.
Others open a line of credit (think $25K or more) to cover big-ticket expenses like a new furnace or major sewer repair.
Whatever you call it, make sure you have a safety net. Because uncertainty in real estate isn’t a matter of if—it’s when.
Renting Isn't Passive- It's Commitment
Landlording isn’t a set-it-and-forget-it scenario. You’re now in the customer service business—with real-life tenants who will call, email, and text when things break, flood, or leak.
Your home becomes a living, breathing asset. It’ll need ongoing care:
Routine maintenance. Occasional upgrades. Emergency fixes.
Case Study 1: A Personal Experience
In 2004, with our second child on the way, my wife and I needed more space. We listed our home on the northeast side of Indianapolis and hoped for a quick sale.
But… nothing.
Weeks turned into months. We got a couple offers, but they fell through. So, rather than keep waiting—and with a move already on the horizon—we decided to rent it out and revisit selling later.
At the time, T&H Realty didn’t exist yet, but I had years of experience managing rental properties. Turning my personal residence into a rental wasn’t a huge leap.
Still, it wasn’t exactly smooth sailing.
The married couple who moved in? They weren’t married by the end of the lease. There were a few missed payments, and the property came back with more damage than expected. But after some make-ready work, we relisted it—and this time, it sold quickly.
The outcome? I sold the home for more than I would’ve the year before and broke even on the rental income. Given the market, the stress, and the timing, I considered that a win.
Renting gave us flexibility when the market didn’t. And that lesson has stuck with me ever since.
Case Study 2: A Flip that Flopped
If you know much about our history, you know we used to flip a lot of homes.
A few years ago, we purchased a stunning property on Geist Reservoir. The plan? Fix it up and sell it for a strong return—just like we’d done many times before.
But this time, the numbers didn’t line up.
We overspent on the rehab, aimed for top dollar, and quickly discovered the market wasn’t buying what we were selling. After multiple price drops and zero traction, we had to pivot.
So, we rented it out.
Now, this wasn’t your typical rental. We’re talking nearly 8,000 square feet—definitely not a cookie-cutter investment property. But we didn’t have a better option, and to our surprise, the home leased quickly.
During the year-long tenancy, the Geist market heated up. And when the tenant moved out—leaving the property in near-perfect condition—we put it back on the market.
This time? We received multiple offers and ultimately sold it for $50,000 more than our original list price.
What started as a plan gone sideways turned into a big win—because we stayed flexible and let the market catch up.
Renting bought us time, covered holding costs, and gave the market room to rebound. It’s a perfect example of why renting isn’t a backup plan—it’s a strategy.
In Conclusion
Renting your home can seem like a daunting, scary task. If you are still scared after reading through this blog, renting may not be your best option.
However, if you are clear on what to expect when becoming a landlord, becoming a landlord could become a very satisfying proposition for you.
It could also give you long-term financial freedom.
