Approximately 30% of landlords in the UK are classed as ‘accidental landlords’, but what actually is an accidental landlord?
An accidental landlord is exactly what it says on the tin, a landlord who never originally planned on becoming one. Many different circumstances can lead to someone becoming an accidental landlord such as inheriting a property, upsizing or downsizing, or relocating to another place.
Becoming a landlord can be a lucrative business but it is also a huge responsibility and it’s easy for unprepared first-time landlords to make mistakes as they navigate the rules and regulations associated with being a landlord.
Having unintentionally entered the realm of real estate rental, accidental landlords can find themselves receiving a “baptism by fire”. They have no previous experience or formal training to help assist them in this new role. For a better understanding of what needs to be considered, and actioned, before becoming a landlord, read our article on how to become a landlord.
Some things that may present a challenge for landlord include knowing about:
Landlord insurance is not a legal obligation however most standard home insurance policies will not provide cover for properties which are being rented out. There are many kinds of landlords insurance available ranging from single-property landlords - which may be the more common for accidental landlords - to multi-property landlords. You can read all about the different types of landlord insurance and the benefits of having it, as well as the risks of not having it in our guide.
Landlord insurance provides cover specifically for renting out properties, including loss of rent cover and property portfolios. For more information visit our dedicated landlord insurance page or call us on 0344 892 1664.
Alison Wild BCom (Hons), FMAAT, MATT, Taxation Technician is a highly respected industry professional who has been working with and advising SMEs in areas including tax, pensions, insurance and marketing for over 25 years. She is a member of the Association of Accounting Technicians (AAT) and Association of Tax Technicians (ATT) and also has 20 years' experience as a residential landlord.
Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.
Date: August 09, 2024
Category: Landlords