Should I Rent My Las Vegas House Instead of Selling?

by Ryan Rose

You're moving but not sure about selling. Maybe you'll come back. Maybe you want passive income. Maybe you think prices will rise more. Renting instead of selling seems appealing.

But should you actually become a landlord?

The Case for Renting

Keep your low interest rate. If you locked in 3-4% during the low-rate era, you keep that cheap money working for you. Rental income minus mortgage payment could be positive cash flow.

Potential appreciation. Hold the property and benefit from future value increases. Sell later at a higher price.

Monthly income. Rental income can supplement your finances, especially if the rent exceeds your costs.

Tax benefits. Depreciation, expense deductions, and other tax advantages come with rental property ownership.

Flexibility. Not sure if you'll return to Vegas? Renting keeps your options open.

The Case for Selling

Prices are at record highs. The median Las Vegas home is at $488,995. Future appreciation isn't guaranteed. Locking in today's price eliminates risk.

Landlording is work. Tenant screening, maintenance calls, rent collection, legal compliance. Even with a property manager, you're still the owner responsible for decisions and costs.

Distance complications. Managing from another state is harder. You're dependent on property managers and can't easily check on things.

Vacancy risk. No tenant means no income but continued mortgage, taxes, insurance, and HOA payments.

Tenant risk. Bad tenants can damage property, stop paying, and require expensive evictions.

Capital tied up. Your equity is locked in the property. Selling frees that capital for other uses or investments.

The Math: Renting vs. Selling

Run the numbers before deciding:

Potential rent: Research comparable rentals in your area. What can you realistically charge?

Monthly costs: Mortgage (PITI), HOA, maintenance reserve (budget 1% of value annually), property management (8-10% of rent), vacancy reserve (budget 5-8% of rent).

Cash flow: Rent minus all costs. Is it positive? By how much?

Example:

Item	Monthly
Potential Rent	$2,400
Mortgage Payment	-$1,800
Property Management (10%)	-$240
Maintenance Reserve	-$400
Vacancy Reserve (5%)	-$120
Net Cash Flow	-$160

In this example, you'd actually lose money monthly. Many Las Vegas properties don't cash flow positively at current prices and rents.

Questions to Ask Yourself

Can you handle a 2 AM emergency call? Even with a property manager, major issues require owner decisions.

Can you afford vacancy? What if the home sits empty for two months between tenants?

Do you have reserves? A new AC system costs $8,000-12,000. Do you have that available?

Are you emotionally ready? Tenants won't treat your home like you did. Can you accept that?

What's your exit plan? At what point would you sell? Have a strategy, not just open-ended hope.

The Investor Exit Tells a Story

Consider this: Investor purchases in Las Vegas dropped 20% year-over-year in Q3 2025. Professional investors are leaving the market. They have data and analysis you don't. If they're selling, should you be buying into landlording?

The Bottom Line

Renting can make sense if the numbers work and you're prepared for landlord responsibilities. But don't become a landlord just to avoid making a selling decision. Run the math, be honest about your tolerance for hassle, and make a clear-eyed choice.

Weighing whether to sell or rent your Las Vegas home? Let's analyze your specific situation.

Frequently Asked Questions About Renting vs. Selling Your Las Vegas Home

Q1: Will my Las Vegas rental property have positive cash flow?

Not necessarily. Many Las Vegas properties at current prices don't produce positive cash flow when you account for mortgage payments, property management fees (8-10% of rent), maintenance reserves (1% of property value annually), vacancy reserves (5-8%), and other expenses. Run detailed calculations based on realistic rental rates in your specific neighborhood before assuming you'll have monthly income.

Q2: How much should I budget for maintenance on a Las Vegas rental property?

Budget at least 1% of your property's value annually for maintenance and repairs. For a $490,000 home, that's approximately $4,900 per year or $408 monthly. Major expenses like AC replacement ($8,000-12,000) are common in Las Vegas due to extreme heat, so maintaining adequate reserves is critical.

Q3: Can I manage a Las Vegas rental property from out of state?

Yes, but it's more challenging. You'll need a reliable property manager (typically 8-10% of monthly rent), and you'll still need to make important decisions about repairs, tenant issues, and emergencies remotely. You won't be able to easily inspect the property or handle issues personally, making you more dependent on others.

Q4: What happens if my rental property sits vacant?

During vacancy, you're responsible for all costs without rental income: mortgage payment, property taxes, insurance, HOA fees, utilities, and ongoing maintenance. Even a 1-2 month vacancy between tenants can significantly impact your annual returns. Budget 5-8% of annual rent for vacancy reserves.

Q5: Should I keep my low interest rate by renting instead of selling?

A low interest rate (3-4%) is valuable, but it's only one factor. Calculate your total cash flow including all expenses. If you're losing money monthly or breaking even, the low rate doesn't overcome the financial drain and landlord responsibilities. Also consider opportunity cost—could you invest the equity elsewhere for better returns?

Q6: What tax benefits do Las Vegas rental property owners receive?

Rental property owners can deduct mortgage interest, property taxes, insurance, maintenance costs, property management fees, and claim depreciation on the property. However, these benefits must be weighed against the actual cash flow and responsibilities. Consult a tax professional to understand how rental income and deductions would affect your specific tax situation.

Q7: How do I know what rent to charge for my Las Vegas property?

Research comparable rentals in your specific neighborhood with similar size, features, and condition. Look at current listings on rental platforms and consider working with a property manager who knows local rental rates. Be realistic—overpricing leads to extended vacancy, while underpricing costs you income. Current market conditions and property condition significantly impact rental rates.

Q8: What are the biggest risks of becoming a landlord in Las Vegas?

Key risks include: tenant damage to your property, non-payment of rent requiring costly eviction, extended vacancy periods, expensive emergency repairs (especially AC in Las Vegas heat), property value decline, and the time commitment for management decisions. Distance management adds additional complications if you're out of state.

Q9: Why are professional investors leaving the Las Vegas rental market?

Investor purchases dropped 20% year-over-year in Q3 2025 because professional investors analyze whether properties meet their return requirements. At current high prices ($488,995 median), many properties don't generate sufficient cash flow or meet profit targets. When experienced investors with extensive data exit the market, it signals challenging conditions for individual landlords.

Q10: How much does property management cost in Las Vegas?

Typical property management fees in Las Vegas range from 8-10% of monthly rent, plus additional fees for tenant placement (often one month's rent), lease renewals, and maintenance coordination. For a property renting at $2,400/month, expect to pay $240-288 monthly, plus $2,400 or more for initial tenant placement.

Q11: When does it make sense to rent instead of sell my Las Vegas home?

Renting makes sense when: you have strong positive cash flow after all expenses, you have adequate reserves (6-12 months of expenses), you're prepared for landlord responsibilities, you have a clear exit strategy with specific goals, and you view it as a true investment rather than avoiding a selling decision. If any of these don't apply, selling may be the better choice.

Q12: What should I do if the math shows negative cash flow but I still want to rent?

Negative cash flow means you're subsidizing the property monthly from other income. Only proceed if you can comfortably afford the losses, have substantial reserves for emergencies, and have a clear plan for when appreciation or rising rents would make it profitable. Be honest about whether you're making a sound investment decision or just postponing a selling decision.