The term ‘accidental landlord’ sprung up around 2008 when people still had to relocate for work and schooling but couldn’t find a buyer for their existing home. Many of these people were pushed into renting out their property to cover their existing financial obligations.
However most of the people who became landlords during this time are now delighted because not only have the majority gone up in value but they have also enjoyed the financial rewards from renting them out.
Keeping an existing property is also a good idea if you are only relocating for a short amount of time, it makes sense financially as once your contract or period of relocation has ended you can then move back into your own property.
If you are planning on relocating permanently then you might still want to consider keeping your existing property if you can afford to buy another one, because in a rising market the value of your current home might increase. It’s important to remember that any gains on a second property will be liable for capital gains.
Before embarking on renting out your home you will need to make sure that you will earn enough from renting it out to cover your existing mortgage, a good local agent such as Intercounty will be able to give you an accurate gauge on what you could expect to earn. You will also need to check with your mortgage company to make sure you are allowed to rent it out under your current agreement.
If you are in the process of relocating and would like to weigh up the pros and cons of letting out your existing property then why not visit the lettings section of our website, packed full of letting tips – you can also get an idea of how much yield you could expect by using our gross rental yield calculator.