Are You an Accidental Landlord?

By
Real Estate Agent with Keller Williams Realty of the Treasure Coast 3068211

Becoming an Accidental Landlord

"Accidental Landlord" is a catch phrase that applies to many home sellers who cannot afford to sell or are unwilling to sell their home under present market conditions. In simple terms it means holding onto your property by moving out of it and becoming a landlord. If your house has very little or negative equity, renting out the house while property values rise may be an option and in some cases can help prevent foreclosure.

Seek Professional Help

I am not talking about seeing a psychiatrist (your friends may suggest this), but if you are about to become an accidental landlord you must understand the process including how to screen prospective tenants, prepare a lease and tenants' rights with regard to repairs, collections, and evictions. This may seem overwhelming at first but professional help is available. A Realtor experienced in procuring tenants coupled with a competent property manager and real estate attorney can minimize the stress of renting out your property. This is especially important if you are out of town or plan to relocate.

Talk to Your Accountant

Often rent that a property will generate will not cover the total monthly "nut" or expense of owning the house, but this negative cash flow may provide you with a valuable tax deduction. Also, as the value of your home rises (along with the rent), cash flow can go from negative to positive. Be sure to talk to your accountant to discuss the benefits of owning an income producing property.

Renting out your home is a great way to protect your investment while the market recovers. Having a team of rental professionals in place can help minimize problems along the way.

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This post has been authored by Eric Slifkin, REALTOR® serving South Florida's Treasure Coast. You can reach me at 888-288-1765. As your resource for information on new or resale homes throughout the Treasure Coast, please be sure to contact me about any home you may find on the Web, yard sign or ad and I will research the property, arrange showings and handle all the details. For the latest Treasure Coast and Stuart, Florida MLS listings, please visit my Web site at www.TreasureCoastHomeSales.com

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