Churches Make Terrible Landlords (And It’s Not Their Fault)
Most people have no clue that churches are landlords. That’s not something they put on the bulletin board next to the potluck sign-up. But trust me, they are. Churches all over the place are in the real estate game, renting out homes and buildings they never intended to be income properties.
And here’s the kicker—they’re usually doing a terrible job at it.
Let me be clear: it’s not because they’re bad people. It’s because they’re not landlords. They never planned to be, they were never trained to be, and most of them aren’t thinking like investors. But the results? Still a hot mess.
How Churches Got Into Real Estate
Once upon a time, full-time clergy positions were the norm. Your church had a full-time pastor, and that pastor lived in a house the church owned—a parsonage, a rectory, whatever you want to call it.
In some cases, churches even bought extra homes next door or down the street. Sometimes it was to provide more housing. Sometimes it was to run programs. Sometimes it was to control what happened in their neighborhood. Either way, they ended up with real estate.
But they didn’t buy those properties with the intention of becoming landlords.
What Changed
We all know the story—church attendance is down. Tithing is down. Money is tighter than ever, but expenses are still rising. At the same time, a lot of churches lost their full-time clergy positions. Now, instead of a pastor and their family living in that parsonage, the house is sitting empty—or worse, it’s bleeding money.
So what do they do? They rent it out. Just like that, they’ve joined the landlord club.
Who’s Managing the Rentals?
Here’s where things go sideways.
Most churches have a Council of Trustees or some sort of board. These are good people—folks who care deeply about the church and its mission. They’re showing up, volunteering their time, and doing their best to keep things running.
But they’re not landlords. They’re not business owners. And they sure as hell aren’t real estate investors.
So now you’ve got a bunch of well-meaning people managing leases, collecting rent, dealing with tenant issues, and trying to maintain a property they don’t really understand.
What Goes Wrong (Because Something Always Does)
I usually hear from churches when they’re in full-blown crisis mode. The tenant isn’t paying rent. The place is trashed. The previous Treasurer died and left the lease hidden in a safe no one can open. Nobody knows what to do. And the council is split between wanting to forgive the tenant and wanting to call the cops.
Here’s the really tricky part: a lot of churches aren’t even allowed to sell the property. It’s tied up in their governance documents, or they have to get approval from a larger religious conference. So they’re stuck holding this asset and just trying to make it work.
The rent they collect? It’s usually not enough to cover the costs. And they don’t even realize how much risk they’re taking on.
What Churches Should Be Doing
If you’re a church with rental property, hear me loud and clear: you need to bring in a professional property manager. Someone who understands leases. Someone who knows how to handle tenants legally and consistently. Someone who can take care of maintenance, inspections, and all the little details that keep the property (and your mission) protected.
Because here’s the truth: unless you’re running it like a real business, it’s not worth the little bit of rent you’re getting. It’s too risky. And one bad tenant or one missed detail can tank your finances fast.
The church’s job is to serve the community—not get dragged down by property drama.
I’m PM Jen, the—landlord educator, real estate investor, and your favorite straight-talker in the buy-and-hold game. Hold It With PM Jen exists to help real estate investors protect their assets, grow their cash flow, and stop spinning their wheels.
Our mission is simple: help you hold properties smarter, longer, and with way less bullshit. Whether you're new to real estate or knee-deep in it, I’m here to help you hold strong and grow big.