Real Estate : Accidental Landlord
“A colleague bought a SFH home in the spring in the hopes of flipping it for a quick profit. She now finds herself amongst the ranks of the accidental landlords. She is not happy.”
“A colleague bought a SFH home in the spring in the hopes of flipping it for a quick profit.
She pulled it off the market after the financing from a prospective buyer fell through. With the market having weakened significantly since then, she now finds herself amongst the ranks of the accidental landlords. She is not happy.”
– Manna from heaven at VCI 27 Sep 2012
Ahhhh.. being a landlord.
Not for the weak hearted, and that is for those who may actually plan to be.
” Accidental landlord ? “
I can envision a lot of that phenomenon occurring, whereby people are stuck with real estate can’t sell , are highly leverage and require cash flow ie renter.
Our family has been landlords for decades, and have found the vast majority are good honest people..but one bad tenant can really make you evaluate the issue. There are numerous rules and regulations in place via the Residential Tenancy Act, which IMHO favours the tenants. If a person is relying on rental income, and cannot afford one missed payment…LOOK OUT. Probably kiss it good bye….can’t get blood out of a stone.
In addition, while on other blogs, I some people have posted about an increase in ” fires “….the inference is perhaps arson for insurance claims ? akak buyers and .builders going under and getting desperate?
Finally an empty house, no matter how old(or new) is a prime target for theft and vandalism. One of my nehgbours had rented a house…evicted the tenants (again ….months of rent owed) and as soon as it was empty..people broke in and stole various fixtures ie plumbing etc. The house had been in the family for years,but they gave up and SOLD it.
As many with a modicum of financial knowledge will say, the rents one charges will never cover the mortgage payments, if one tries to make the residential unit an investment, the rent will have to be subsidized with either a large downpayment and/or landlords own funds.
Regardless, in this crazy unstable and collapsing market, I can foresee a lot of Accidental landlords forthcoming ..(.good luck they will need it.)