Every year thousands of people are pushed into renting a property for the first time and become accidental landlords. Not everyone sets out to be a landlord, an accidental landlord is someone who becomes a landlord by circumstance rather than by plan. It can be an intimidating experience for those who never planned to become a landlord. This daunting experience includes the raft of rules and regulations to negotiate, dealing with tenants, tax implications, and making sure you have the right insurance. In this article, you will explore the responsibilities, reasons, and risks that come along with being an accidental landlord. So if you want to enjoy the benefits of turning your property into an investment and avoid all the stress then keep on reading.
Reasons For Becoming An Accidental Landlord
A surprisingly large number of landlords do not become landlords by choice, there are several reasons why you might become an accidental landlord which includes
- A person is unable to sell his current home so they choose to rent it out when he buys a new one.
- A person who requires relocating for a job for a while and decides to rent the home so tenants can live in it while he returns.
- Inheriting a property a person either cannot sell or wishes to live in, so he decides to rent it out.
- Moving in with a partner and having a spare house and being unable to sell it.
- There may be economic circumstances like being unable to pay the mortgage.
What To Do?
Here are some of our handy tips to ensure you are fully prepared if you find yourself with a property through unplanned circumstances.
Ensure You Have the Right Insurance
Before leaping into the world where you rent your property you must have all the essential insurance cover. You may have home insurance but it is recommended that you should take on landlord insurance this way you can keep your property fully protected.
Be Aware Of Responsibilities
The main responsibility of a landlord is to ensure the property is safe and fit for the tenant to live in. You are required as a landlord to make regular gas, electrical, and fire safety checks. for this task, you should have a gas safe registered engineer visit the property annually. You are expected to carry out an annual inspection on electrical safety, for fire safety you must provide a smoke alarm for each floor of the property.
Keep Information on Tenants
Before you rent your property to a prospective tenant make sure you have undertaken a full-scale referencing of the tenant. First of all, you must check whether the tenant you selected can afford to live in your property and pay rent on time. Conduct credit checks and income references, and ask for a previous landlord reference to ensure your tenant will be reliable.
Also Read: Things Landlords Should Know about Rental Property Tax Deductions
Conclusion
If you are an accidental landlord it might seem like there is a lot to consider but whenever it comes to making any major decision the key is to be informed fully. This way you would be certain that you are making the right decision. In this article, you will find answers to all of your questions. And if you look, the best part is that becoming an accidental landlord can provide you with a passive income for many years that doesn't feel bad about taking some responsibility for being a landlord.
