The accidental landlords

The rise of the accidental landlord

In tough economic times, the property markets, including the rental sector, are often those hit the worst. Declining interest rates might help people with mortgage repayments in the interim, but what happens to those who simply cannot make ends meet? Uncertain times can bring out unlikely entrepreneurs and those that have the threat of losing their property often turn to the rental market to help with mortgage repayments. The rise of the ‘accidental’ landlord can occur for a number of reasons:

• Buyers purchasing during the boom years, now faced with a 100% mortgage and a lack of funds to keep up repayments
• Relationship breakdown and not being able to buy the other party out
• First time investors purchasing property during a recession as property is cheaper

When these situations occur, letting a room or entire property out is the best way to safeguard the initial investment. Being a landlord may not have been a consideration previously, but now it turns to necessity. But what are the implications of suddenly becoming a landlord of a rental property? There are some key factors that all accidental landlords should take into account before letting out their room or property:

• Speak with your mortgage provider – may not be necessary if you are a ‘live in’ landlord, but certainly if you are letting out a complete property.
• Contact a letting agent – how do you want to manage your property? Do you have the time to think about all the intricacies? Get a management package that suits your lifestyle.
• If you are working as a private landlord, check your liability. Health and safety regulations need to be adhered to, so make sure that research is completed.
• Ensure that you are up to date with all current government legislation, including mandatory EPCs that your rental property must have in place.

By making sure that every base is covered, becoming an accidental landlord can provide attractive returns and provide much needed income assistance during difficult times. Click here for more information on becoming a landlord