Accidental Landlord-How Does It Happen?

Statistics show that at least one landlord in five are now doing so out of necessity rather than by planned and conscious choice. These people did not purchase their properties with the intent to lease them out...it just sort of happened. 

For instance, my friend Dave and wife, Delores in Dallas had a home built in the suburbs by a new home builder about two years ago and moved in. They added all the fancy upgrades such as a media room, hardwood floors, etc. The home turned out beautifully and almost simultaneously, Delores sought and attained a great job in the Houston area at the same time the mortgage/housing markets began to show major signs of trouble. With having minimal equity and being overly upgraded, they decided to wait on trying to sell as they would assuredly lose significant money in doing so. So Dave and Delores put the house up for lease and began reviewing the many applications they were getting. Although Dave is in the business of real estate sales, he is not only out of town, but he is unsure of how to manage a rental property as well.

Dave and Delores are now “accidental investors” and there are thousands of others just like them. These new landlords are being asked to understand how to analyze prospective tenants, prepare leases, know their’s and their tenants rights when it comes to repairs, collections, and unfortunately, evictions. If you or someone you know has become an accidental investor, it’s important to make sure you brush up on your contract law and tenant’s rights laws in your state so you can be prepared to operate efficiently should the need arise for you to take action. Taking a property management course like the one offered at Trump U can give you a broad base of knowledge from which to draw should you convert from happy homeowner to shrewd landlord. Proper asset insurance and marketing will be key to get new tenants in and keep them as long as you need them.