It’s time to think like an accidental landlord
You’ve been offered a substantial promotion at work, or poached by a competitor for an exciting opportunity. There’s just one problem: the new job is 300 miles away, and you can’t afford to move. Your house is in negative equity, or home prices in the new location are out of your reach (for now). It’s make-or-break time, and it looks like break. If you can’t sell your house, you can’t move, and you can’t progress on the career ladder.
Don’t fret! Think like an accidental landlord, instead
The good news is that you can take the opportunity without selling your home. Instead, rent in your new location and rent out your existing home. This strategy could provide exceptional benefits to you as an accidental landlord, and, as a property investment strategy, let-to-rent is becoming increasingly popular.
If you think you can’t afford to move, first look at the rental values of properties like yours in your current location. Generally speaking, rents are more expensive than mortgages and the rent from a tenant will cover the mortgage payments.
Now all you have to decide is if your new salary will cover the rental costs of your new home – if it doesn’t, again don’t fret. Remember, you are being offered the new position: you’re wanted. That gives you a big bargaining chip – you might be surprised at how much higher you could negotiate your new salary.
If it all goes wrong, you can switch back
Another concern that people in your position have is, what if it all goes wrong? What if the job doesn’t turn out like you expected it would, or the promises made to you were nothing but hot air? Or, perhaps your wife and children can’t settle after a few months?
As an accidental landlord, you’re in the best position now. You haven’t sold your home, haven’t incurred expensive estate agent’s fees, and haven’t sucked up a loss. If it all goes wrong in your new job, for whatever reason, because you’ve taken a let-to-rent approach, there won’t be the anxiety of thinking “I can’t afford to move back”. Simply up sticks and move into your old home (having given the tenant proper notice, of course).
“I can’t afford to move” is simply an excuse for not doing
Whatever the reason you want to move to a new location – be it job, retirement, to be nearer loved ones, etc. – there is no reason not to make the move. Especially if that reason is “I can’t afford to move.”
Put yourself in the shoes of an accidental landlord. Explore the possibilities and opportunities offered by the let-to-rent property investment strategy. You’re an accidental investor as well as an accidental landlord – and one that is about to make the most of life’s opportunities.
If you’ve got any questions, please feel free to contact us by phone (+44 1522 503 717).
Yours in effortless property management,
Brett Alegre-Wood MARLA MNAEA