Nearly one in three people would consider becoming an accidental landlord after moving in with a partner or otherwise finding themselves with a home they no longer use, new research suggests.
A survey for specialist landlord insurance broker Everywhen found 30% would consider letting an unused property to generate an income.
Inheritance could prompt 12% to become a landlord, while 9% would consider renting out a property they had been unable to sell.
Work relocation could lead 7% to let their home, while 6% would consider renting it out during the period between buying another property and selling their existing one. Overall, 64% cited a change in personal or property circumstances as the main reason they might consider letting a home, compared with 21% motivated by additional monthly income.
KNOWLEDGE GAP
The research also points to potential gaps in knowledge among people who unexpectedly become landlords.
More than a third – 36% – did not know how long they could leave a property vacant before it might be considered unoccupied for insurance purposes, while 19% believed it could be left vacant for six months.
Individual insurance policies vary, meaning owners should check the conditions applying to an empty property and tell their insurer when its use changes.
Once a property is let, 20% of respondents were unsure what standard landlord insurance typically covers.
TENANT CONCERNS
Tenant damage was the biggest concern about becoming a landlord, cited by 46%, followed by legal disputes with tenants at 16% and major repair costs at 15%.
James Cooper (main picture, inset), Trading Director at Everywhen, says: “Many different circumstances can lead to someone becoming an accidental landlord. Becoming a landlord is a huge responsibility, and it’s easy for unprepared first-time landlords to make mistakes.”
Everywhen also advises prospective landlords with an existing residential mortgage to speak to their lender before letting their property and to understand their legal, tax and insurance obligations.
