"Accidental Landlords" ...

Reblogger Wallace S. Gibson, CPM
Property Manager with Gibson Management Group, Ltd.

Many of yesterday's accidental landlords are NOW investor landlords who want MORE rental property....agents who get familiar with investor properties and what are desirable rental homes to incoming renters in their area will be WINNERS

Original content by The Temple Team

 

Despite rising home prices, 13 million borrowers, or 25.4 percent of all homeowners with a mortgage, still owe more on their mortgages than their homes are worth, according to a recent report by Zillow.   So-called "underwater" borrowers would have to pay money into their loans to get out of their homes. Another 9 million borrowers, while not entirely underwater, likely do not have enough equity in their homes to afford to move.

Rent

The term "Accidental Landlord" came about as a result of "thinking outside the box" when it wasn't really an option to sell or maybe the owner had to move out of town to take a new job, etc.. and selling just wasn't a viable option.

 

While there are no real estimates of how many "accidental landlords" now inhabit the housing market, Realtors say they are one more cause of today's low inventory issue. Usually a buyer is also a seller, making the transaction a wash in terms of inventory, but if the buyer is not a seller, and instead becomes a landlord, inventory takes a negative hit. 

Home prices have been rising steadily, up over ten percent from a year ago, according to the latest reading from CoreLogic. However, prices are still well below where they were during the housing boom, when so many people bought into the market.

As millions come above water, others are far below. While It will take many years of price gains for many homeowners to see the light of equity, it is great that we are on an upward track instead of the downward spiral of not too long ago.

* Excerpts taken from original article written by Diana Olick - CNBC.com

 

As always, The Temple Team is ready and waiting to help you with all of your Real Estate Needs. Contact us anytime at 704-235-3000 or visit our website at www.TheTempleTeam.com.

 

The Temple Team

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The Temple Team

 

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Rainmaker
791,444
Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor in Jax Beach, FL - ABR, CRS, CIPS
Good re-blog; it's very true these accidental landlords will not be in that position forever.
May 28, 2013 02:50 AM #1
Rainmaker
628,656
The Temple Team
THE TEMPLE TEAM - Mooresville, NC
Specializing in Lake Norman/Charlotte/Charleston

Thanks so much for sharing and re-blogging! I'm glad you found it helpful and I'm hoping others will as well :)

May 28, 2013 03:27 AM #2
Rainer
205,620
Mark Delgado
houses for rent, Solano County & Glen Cove - Benicia, CA
Benicia and Vallejo, Property Management, rental h
Great point Wallace. I have numerous examples of this in our client list. Most of them are doing well on cash flow by renting the property.
May 28, 2013 04:14 AM #3
Rainer
126,086
Ricky D. Sadler
Real Estate Marketing Experts &Trusted Senior Advisors on Property Management services, Rentals Leasing, Landlord Ten... - Seattle, WA
Trusted Senior Property Advisor & Marketing Expert

Great Post Wallace!- I have Many Condo Owners that are just-this person-

Thanks

RD

Seattle,WA

www.RD-House.com

May 28, 2013 11:09 AM #4
Rainer
1,756,848
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Wallace.  Great title "accidental landlord".  They better hire Wallace before they get in trouble.

May 28, 2013 08:15 PM #5
Ambassador
1,615,844
Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

Thanks for the reblog. I work with many accidental landlords in my line of work

May 29, 2013 02:29 AM #6
Rainmaker
1,304,782
Charles Stallions Property Manager
Charles Stallions Real Estate Services - Pace, FL
Pensacola, Pace & Gulf Breeze Property Management

Great choice for a reblog Wallace and so informational, thanks for sharing,

May 29, 2013 01:19 PM #7
Rainer
123,673
Dulcey Schuster
Rentec Direct Property Management Software Tenant Screening - Grants Pass, OR
Property Management Software

I started off as an "accidental landlord" My husband and I still own three homes where we used to reside. We were foolish and should have sold them pre-bubble burst but we have found some additional inventory post-bubble burst that have more then paid for the losses of the first three. You live you learn!

Jun 11, 2013 06:45 AM #8
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Rainmaker
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Wallace S. Gibson, CPM

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