Photo by Kindel Media
It’s safe to say that most people who become landlords plan on doing so. However, there is also a special group of people who did not plan on becoming landlords but have had the role thrust on them.
People often become accidental landlords because they inherit property that they never expected to own. While this might seem like a windfall to many accidental landlords have a lot to deal with and also a lot to learn.
According to a recent study published by CNBC in the United States, a large percentage of tenants are behind on their rent by at least $3700. This may be something that seasoned landlords are used to dealing with but an accidental landlord may have some serious challenges with this.
The Benefits of Being an Accidental Landlord
While things are often perplexing and difficult in the beginning for an accidental landlord, the benefits of becoming an accidental landlord are obvious. It’s a chance to earn extra income that is often not planned.
With a great recession looming or already underway depending on who you ask, getting the chance to earn extra income is fortuitous.
The Legalities
The first thing accidental landlords need to do is understand the legalities of their situation. Many fall into the trap of not creating proper lease agreements for their tenants. These agreements need to be detailed as they can have legal issues down the road.
The terms of the lease and also how the lease will be renewed should be outlined. Accidental landlords also need to understand the laws that are in place to protect against discrimination when renting a property. Many accidental landlords fall into the trap of dismissing applications in ways that could be considered discriminatory.
This is why it is often beneficial for accidental landlords to hire a property manager to deal with the letting and subletting of their property.
Networking
All landlords should have a network but accidental landlords more than anyone. This will help them to keep abreast of the latest information that they need to know about renting properties.
It would be beneficial for an accidental landlord to network with those who have deliberately chosen to be a landlord. For example, those who have chosen to get buy to let mortgages and also real estate agents. These people can give accidental landlords valuable advice about how to manage their property even if they do end up getting a property manager.
Information Is Critical
With all the pitfalls that accidental landlords can get themselves trapped in, the onus is on them to learn as much as they possibly can about how property rental works. Failure to do this and just going into it blindly is likely to lead to a lot of issues.
Fortunately, there is help available and all accidental landlords have to do is reach out and get it. They are experts out there who are always sharing their knowledge and all landlords need to network with them so that they can avoid financial losses in their new venture.
