Most land owners and real estate managers, choose the field on purpose. They are far sighted and make plans well in advance. They buy the right kind of property, do all the necessary paperwork and settle down for the long haul. Others, however, are forced to become landlords. Accidental landlords, as they are known, are not those who suddenly wake up and decide to become landlords. The term is used to denote those who become landlords without any choice. Being a landlord can be profitable and you can build a small fortune on your own, however, doing so has its own set of variables. If you think that you can get rich easily, you are in for a rude shock.
The rise of accidental landlords
Accidental landlords are normally the ones who are either unable or just unwilling to sell off their homes. It happens when the current home they are in drops down to almost nil in equity. Closing costs and other commissions worked in, the sale can only be a loss, not even enough to fully justify the mortgage. When this happens, the homeowner has no choice but to keep it, convert it into a rental property and hold it till the market gets better. The decision to keep it can, in the long term be a good one, and many have turned into full time real estate managers after becoming accidental landlords.
The situation may seem like a ‘life gives you lemons, make lemonade’ kind of deal, but landlord work is not for everyone. To begin, put aside as much money as you can to cover the next few months of mortgage, make sure you have all the paperwork in order. The next thing to do is convert your home into a rentable space. It may take you a few months to get into the rhythm, after which, you may even enjoy being one of the accidental landlords.
Image courtesy of [hywards] at FreeDigitalPhotos.net
Posted by: Ted on June 4, 2015
Posted in: Property Management