How Rising Costs and Tenant Issues Are Pushing Landlords to Exit

Landlords are quietly exiting. If you’re not targeting them in your seller outreach, you’re missing one of the biggest motivated seller trends of the year.

Blogs

Mar 17, 2025

They bought for cash flow.
They held for appreciation.
They rode the wave through rising home values and Airbnb booms.

But in 2025? Landlords are quietly exiting.

And if you’re not targeting them in your seller outreach, you’re missing one of the biggest motivated seller trends of the year.

In this article, we’ll break down:

  • Why rental property owners are selling in 2025

  • What signs to watch for (before they list)

  • How to approach them the right way

  • Offer structures that make your deal the obvious choice

Let’s dig into what’s pushing landlords to let go, and how to get in front of them first.

Why Landlords Are Motivated in 2025

Owning rentals still sounds good on paper. But many landlords, especially those with 1–5 properties, are running into a new reality.

Here’s what’s driving the sell-off:

Rising Insurance Premiums

In many states, landlord insurance costs have doubled. In others, insurance providers have pulled out entirely. That means:

  • Higher holding costs

  • Riskier liabilities

  • Less cash flow

Cost of Repairs & Maintenance

Pandemic-era DIY fixes are catching up. Aging properties need:

  • New roofs

  • Foundation work

  • HVAC replacements

  • Permitting and code compliance

That $1,500/mo rental doesn’t look so good when the roof is $20k.

Higher Taxes

Reassessments and rising property taxes, especially in urban and suburban markets, are crushing cash flow.

Landlords who planned for 2021 numbers are bleeding in 2025.

Tenant Headaches + Regulation

With stricter eviction rules, city ordinances, and rental caps:

  • Landlords are losing control

  • Non-paying tenants are harder to remove

  • Some cities are even requiring tenant relocation assistance

Mom-and-pop landlords don’t want the fight. They just want out.

Who to Target First: The “Burnout” Profile

Not every landlord is ready to sell. But here’s who’s most likely:

  • Owns 2–6 properties, not institutional scale

  • Bought 5–12 years ago (lots of equity, low debt)

  • Self-manages (not using a property manager)

  • Property is in need of updates

  • Recent code violations or complaints

  • Delinquent taxes or utility liens

  • Tenant has just moved out (or is causing issues)

With Goliath Data, you can filter for:

  • Rental-owned properties

  • Vacancy status or recent turnover

  • Code violations or tax liens

  • Length of ownership

These aren’t cold leads. They’re tired landlords with options they’re ready to hear.

What to Say to a Burned-Out Rental Owner

You’re not just offering to buy a house.
You’re offering relief from stress, liability, and constant decision fatigue.

Try this:

“Hey [Name],

I own property here in [City] and noticed you might be managing a rental on [Street].

If things are going great ,  awesome, no pressure at all. But if you’re ever looking to cash out without repairs, tenants, or listing hassles, I’d be happy to make you a simple offer.

Totally flexible timeline ,  even if the place is occupied.

Let me know if it’d be worth a quick call.”

This works because:

  • It’s non-pushy

  • It acknowledges the reality (they may still be doing fine)

  • It offers a safe path forward without obligations

Smart Offer Structures for Rental Sellers

Here’s how to turn their pain into your opportunity, while still solving their real problems.

“Tenant-in-Place” Close

Great for landlords who want out but still have tenants with active leases.

Frame it like:

“No need to wait for the lease to end. I’m comfortable buying with the tenant in place, and you walk away clean.”

Cash with Post-Close Possession

If they need time to relocate or prep another property.

Offer:

“We can close quickly, and I’ll give you a few weeks after closing to wrap up anything you need. No rush.”

Subject-To or Wrap Deals

Perfect for landlords with low-rate mortgages.

Pitch:

“If I can take over the payments and keep it hands-off for you, would you be open to something creative?”

This saves you capital ,  and offers them a clean break with monthly income.

How to Position Yourself as the Easiest Exit

Most landlords don’t want to call five agents, clean the property, evict the tenant, fix the roof, and pay fees.

They want out ,  fast and with dignity.

So when you make your pitch, emphasize:

  • No repairs

  • No cleaning

  • No commissions or closing costs

  • Fast timelines

  • Creative flexibility if needed

And most importantly?

No judgment.

They’re not failing. They’re just tired.
And you’re the one who can help them move on without more headaches.

2025 Is the Year of the Landlord Exit

There’s a massive pool of equity-rich, problem-weary landlords out there.

Most of them aren’t behind on payments.
They’re not in foreclosure.
And they’re not on any “distressed” list.

But they’re ready.

If you show up early, speak their language, and offer them a path that feels human and smart ,  you’ll close deals that 99% of investors miss.

With Goliath, you can find them before anyone else does.

And help them let go, on their terms.

Written By:

Austin Beveridge

Chief Operating Officer

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Join Thousands Of Satisfied Operators

Discover why top teams rely on Goliath to find motivated sellers. Get everything you need to prospect, nurture, and close more deals.

679

Live Users

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23
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Closed Deals

11
%

Satisfaction Rating

11
+

Markets Live

Discover

Join Thousands Of Satisfied Operators

Discover why top teams rely on Goliath to find motivated sellers. Get everything you need to prospect, nurture, and close more deals.

679

Live Users

$
23
M

Closed Deals

11
%

Satisfaction Rating

11
+

Markets Live