I'm An Accidental Landlord - Should I Keep My Property?

If you’re an accidental landlord, you might be at a crossroads regarding what to do next.

After all, property is a big responsibility, and while a regular income from rental will always be useful, owning a buy-to-let property isn’t hassle-free.

If you’re lucky enough to inherit property, or acquire it through moving in with a partner, it can be difficult to know what to do with it. Should you treat it as an investment, sell it or rent it out? Sometimes these decisions can be less than straightforward 

It seems there’s quite a few of you who are accidental landlords out there, but if you are one of those wondering whether to keep going, or sell, you might find this blog useful.

So if you would like a balanced perspective on this from a property professional, please read on. 

As one half of an agency specialising in tenanted property with over 30 years’ experience between us, I’ve seen a fair number of landlords in this situation.

You may not have intended to still be renting out property, but hopefully by the end of this blog you’ll feel better informed about all your options and how to move forward. 

PLEASE NOTE: Just before we head into the blog, I should state that nothing in this article constitutes financial advice and we would always recommend talking to a professional financial advisor before making any decisions.

Should you keep your property as an accidental landlord? 

In order to help you decide the best action to take,  let’s take a look at some important factors: 

Consider your strategy

What do I mean by strategy? This is about your plans for the property going forward. Whilst we may not have a crystal ball, your property is an asset. It’s an important part of your life for as long as you own it, so how you manage that asset is key.

With this in mind, it’s a good idea to think about what you want to do with it. Will you keep it as an investment to sell in the future, enjoying the rental income in the meantime? What about the rental income – is it your main source of funds?

In formulating your strategy, it helps to think about your life goals. Do you plan to work until retirement age, and use the rental income to supplement your pension? Or is the property itself your pension? 

Aside from this, many people don’t have an exit strategy. If you’re one of them, we’ve explained more about this in a different blog.

Do you enjoy being a landlord? 

If you became an accidental landlord, and you’re still a landlord, say, two years later, at what point do you stop being ‘accidental’? I’d say it’s at the point where it’s not a burden anymore, and fits into your life well.

However, even if it IS a burden, or you’re finding yourself with less and less time to keep up with inspections and certificates, not to mention repairs and ensuring the rent goes in on time, there are ways around this.

In our experience, roughly half of the accidental landlords we know use a letting agent, particularly in cases where, for example, the landlord lives abroad. So, maybe this is something that might work for you. 

What’s the value of your property? 

Even if you’re happy with the situation of being a landlord, it’s always advisable to keep an eye on the value of your property. Take a look at what the market is in your area and if there’s a downward or upward trend. 

Sometimes it’s better to just sit back and wait for a while, if property prices aren’t quite reaching their potential. A good example is Aberdeen, where property prices have recently slipped due to the oil prices.

Loyalty to your tenants

You’d be surprised how many landlords don’t want to sell because they don’t want to end a tenancy. You can kind of see their point though. A reliable, trustworthy tenant who communicates well and always pays their rent on time, well, you want to do right by them.

What if I told you that you could actually sell your property with the tenant still living there? There are even specialist estate agents who buy and sell tenanted property. For full disclosure, I’m one of them. 

Of course you may be in the position where it suits both you and the tenant to move on at this point, so you have the option for finding another tenant or selling the property as vacant possession.

Get your business head on

Sometimes you’ll have an emotional attachment to a property, particularly if it’s an inheritance, that makes it difficult to see it as a valuable asset. And that’s great if you’re planning on keeping it but otherwise, why not take a fresh look? 

If you start to see things you own as assets and liabilities, you may find that your property has sufficient value for you to remortgage and buy more property. So do your sums – would adding another property also work for you? 

If you are able to release equity from your property to create another asset that in turn creates more income, you could have two properties potentially generating one to two thousand pounds per month. 

Advice from the property pros

Although we asked a straightforward question in this blog, this isn’t a situation where you can easily say ‘yes’ or ‘no’. There are too many factors to consider, and one of the most important ones is whether you actually want to continue being a landlord. 

If you do, great, how about taking it even further and considering buying more property? Demand has never been greater and opportunities are definitely out there for the taking.

If you’re self managing and finding the whole thing a bit of a hassle, but there’s a good yield and the property is in a good location, consider using a letting agent and taking a weight off your mind. 

If you’re still undecided, don’t worry; you’re not alone, we’ve found that there are a quite a few accidental landlords out there, for various reasons.

Informed choice is key here, so get stuck in, do your research and whatever you decide, enjoy the satisfaction of knowing you’re in control of your assets. 

In summary

Thanks for stopping by. We hope this blog has been helpful in deciding what you want to do with your buy-to-let property. 

It really all comes down to taking an objective look at all of your options, and with what your gut is telling you.

There are always options available, and we’re more than happy to discuss them in a no-strings consultation, so please feel free to get in touch with us. 

Written by Chris Wood, MD & Founder of Portolio

Get in touch on 07812 164 842 or email [email protected]