Accidental Landlord by Heather Hilder on July 30, 2019 “Landlord Tribes” Accidental Landlord The archetypal multi-property “professional” Landlord probably only accounts for about 50% of all Landlords. Here, we look at the Accidental Landlord. The rest come in all shapes and sizes: The “Pension” Landlord The “Parent” Landlord The “Inheritance” Landlord The Accidental Landlord The Accidental Landlord is a homeowner who would ideally have sold, but has decided to rent the property out instead. This is likely to be for one of two reasons. Firstly, the market is not currently strong enough to support a sale within a convenient timescale. Or, secondly, the current expected sale price is below the figure that would make the sale financially acceptable. Nevertheless, the homeowner still needs to move house. It may be because of a change in circumstances, such as children’s school requirements, a job move, marriage or lifestyle needs. So they decide to let out their property as an alternative to selling it. The rent received can then be used either to cover their own rent, or the mortgage payments, on their next purchase. This can be very worthwhile during these times of low interest rates when rental income can exceed mortgage payments. Whilst it’s unlikely that you could secure a 100% mortgage without the proceeds of sale from the previous property, there may be enough equity in that property to cover this. Investment Landlord Although intended as an initial short-term fix, we often find that once the homeowner has settled into their next property, the original property becomes a reliable longer-term investment. This is where the term “accidental” Landlord comes from. We have a number of such people who have then gone on to acquire further properties to add to their initial portfolio of just one property – their own home! If you are currently weighing up the pros and cons of selling versus renting, it might be worth asking us to help you consider the merits of both, so you can make an informed, convenient and profitable decision. You may like to try our FREE ONLINE VALUATION TOOL to help in your decision. Call us on 01273-735237 or contact enquiries@callaways.co.uk . Are you an Accidental Landlord? We’d love to hear your story.
