You probably won’t have failed to notice the fact that there is an increasing number of “accidental” landlords coming to the fore.
The term has been coined from the fact that many property owners have been forced to become landlords due to the fact that they have been unable to sell their property. Thus the only alternative, to some, is to rent their property out to grateful tenants instead of waiting for the right buyer!
Is letting your property a disaster?
If you have found yourself to be in such a position than letting out your property is certainly not a disaster. It can actually be beneficial as it will allow you to bring in some income from the property whilst waiting for the market to improve. The income generated can also go towards paying for a mortgage on a second home.
Furthermore, the property will not be left empty and vulnerable to squatters or burglars.
Paper Work
As a new found landlord it will however be important to make sure you go about the task of letting your property legitimately and with all the correct documents and paper work.
For example, it’ll be wise to ensure you have purchase a landlord insurance quote in the event of your property sustaining accidental or malicious damage whilst it is being let.
Expanding Market
The fact that more landlords have, depending on how you look at it, lucked into the situation of being a landlord, means that more rental properties have come to the market. This has perhaps been reflected in the fact that the rental market has, to some degree, slowed since the beginning of the year.
The fact that there are now more rental properties on the market may also have an impact on rental prices. As we know they were creeping up, and with 2012 predicted to be another fantastic year for landlords, we could now, provided more and more rental properties come to the market, see some competition for rental demand and indeed supply.
Do you come under the category of accidental landlord? Or do you know someone who has struggled to sell their property in a difficult market?