Accidental landlords: tips on how to thrive in your unexpected role

You might unexpectedly find yourself in a position of having a property to rent out. We explore what it means to be an accidental landlord, the challenges you might face and steps you can take to navigate unfamiliar territory successfully.

Life can take an unexpected turn, and due to unforeseen circumstances, you find yourself with a property to rent out. When this happens, you’re commonly referred to as an ‘accidental landlord.’ But you’re not alone. It’s estimated that approximately 10% of landlords have not become landlords by choice*.

Read on as we explore landlord responsibilities, anticipate potential challenges, and understand the steps you can take to navigate your new role with confidence. 

Becoming an accidental landlord

There may be several reasons why you’ve become an accidental landlord, such as inheriting property, relocating for work, or being unable to sell a home. Often, you won’t have anticipated becoming a landlord but find yourself thrust into the role, nonetheless.

The challenges of being an accidental landlord 

While it can offer financial benefits, being an accidental landlord can come with challenges, especially if you’re not prepared for the responsibility. Common hurdles can include:

1. Legal and financial obligations: there are legal and financial responsibilities that come with being a landlord and that might be overwhelming for those unfamiliar with landlord-tenant laws and regulations.
2. Property maintenance: keeping the property in good condition and addressing tenant issues promptly can be time-consuming and stressful, particularly for landlords with existing full-time commitments.
3. Tenant management and responsibility: finding reliable tenants, handling rent, providing support during their tenancy, and resolving disputes requires effective communication and problem-solving skills.

What to do if you find yourself as an accidental landlord

If you've unexpectedly become a landlord, don't worry. With the right approach, you can successfully navigate this situation. Here are some steps to take:

• Educate yourself: it is important to take some time to get familiar with landlord-tenant laws, tax implications, and property management best practice. The Government has provided information on renting out your property and this can be a good place to start. It might also be worth considering joining a landlord association such as the National Residential Landlord Association (NRLA) or Landlords Guild for support and guidance. There are costs associated with joining an association, so this should be considered when assessing your financial commitments.
• Assess your property: evaluate your property's condition and make any necessary repairs or improvements to attract and retain tenants and maintain its value. This assessment should include fire safety - testing smoke alarms and carbon monoxide alarms, health and safety inspections which can be carried out by your local council, ensuring all gas and electrical equipment is safely installed and maintained and obtaining an Energy Performance Certificate.
• Understand the finances: if you’re unexpectedly renting out a property that was your home, and it has a mortgage, it’s important you contact your mortgage lender. Some residential mortgages allow you to transfer to a buy to let mortgage but not all, and there may be administration costs to do this. In addition, it’s important you work through tax implications of the additional income you're receiving and it’s likely you'll need to start completing a self-assessment tax return. Speak to a tax professional for support or visit Work out your rental income when you let property on the Government’s website for more detail.
• Keep track of your outgoings: it’s also important to keep track of outgoing costs including your mortgage payments, insurance, tax, and maintenance costs. You can create a spreadsheet or use an online property management tool. Take the time to consider the right approach for you and your circumstances.
• Set your rent: to set realistic rent rates review market trends and comparable properties in the area. The Government’s How to let guide is designed to help those who are landlords within the Private Rented Sector.
• Establish clear guidelines: creating a tenancy agreement with the right information can be tricky. The Government’s shorthold assured tenancy agreement template outlines a tenant and landlord checklist, terms of the agreement including tenant and landlord obligations, rent payment terms, and approach to maintenance. It is important to clearly communicate expectations to tenants to avoid misunderstandings later.
• Stay organised: keep thorough records of rental income, expenses, maintenance requests, and communication with tenants. You might want to consider using property management software or hiring a professional property management company to help streamline administrative tasks.
• Be responsive: maintain open lines of communication with your tenants and address any concerns or issues promptly and professionally. Building a positive relationship with your tenants can lead to smoother rental experiences and reduce the likelihood of conflicts. Read more about improving landlord-tenant relationships.
• Plan for the future: consider your long-term goals for the property. Whether you intend to continue renting it out or eventually sell, having a clear plan in place can help you make informed decisions and maximise your investment.

Becoming an accidental landlord may not have been part of your original plan, but with the right approach, and by staying informed, you could effectively manage your rental property turning it into a successful investment.

*Source: English Private Landlord Survey 2021