I have become an accidental landlord, what should I do?
Research from the National Landlords Association reveals 24% (360,000) of UK landlords came into the market accidentally or unintentionally and Reeds Rains believes that many people are concerned about what this could mean for them. (*)
An accidental landlord is a home owner who is unable to sell their property and has decided to rent it instead.
Hannah Davies area lettings director for Reeds Rains explains: “The accidental landlord tends to be people in their early to late 30s, couples, young families in their second to third home or a deceased estate where property maintenance maybe costly. The common reasons people become an accidental landlord is because they need to relocate for a job or they have a growing family and need more space.
The problem they face is that if they sell their property it needs to be priced so competitively it would put them in negative equity. So in the long term, they benefit from renting it instead. The income may be smaller in the short term but over a longer period of time they benefit from the added value the property has gained while they also rent a property which is more suitable for their situation.
Our advice to accidental landlords is to make sure you receive a good consultation on the value of your property, that there is reliable tenant referencing system in place and you have insurance which covers against late rent payment or any loss or damage that might be incurred.
At Reeds Rains, we already have a list of referenced tenants with appropriate credit references and guarantees. In fact, we already have hundreds of pre-qualified tenants seeking properties all over the UK which means that we can swiftly match suitable tenants to properties as soon as they are let.
Reeds Rains want to provide reassurance that being an accidental landlord is not as daunting as people initially think it is. There are many opportunities available and we are encouraging people facing this situation to visit www.reedsrains.co.uk to book an appointment to find out which option is best for you.”