Less engaged in real estate investment, the accidental landlord is diligent in knowing the value and convenience of partnering with a reliable property management company.
An Accidental Landlord is an individual who came to own rental property for circumstantial reasons, but they don’t consider themselves investors.
In comparison with investors, Accidental Landlords are more likely to:
- Own a single unit
- Be considering selling their rental property in the next 2 years
- Own their property for sentimental reasons
- Consider themselves retired
- Worry about the financial and legal risks of owning rental property these days
- Hire a property manager to attend to their property’s maintenance, residents, and finances
- Find it hard to consistently cover all of their expenses with their rental income
- Have acquired their rental property in the last 5 years
Accidental Landlords are less likely to:
- Be interested in acquiring new properties
- Have multifamily or commercial properties in their portfolio
- Have acquired rental property primarily as a source of income
- Identify as a full-time landlord or real estate investor
- Own multiple properties
There are two types of Accidental Landlords:
- Single-Unit Owners own just one rental unit and have no plans to grow in the near future. 36% of small-portfolio rental owners currently fit this profile—an increase of 7 percentage points over the past year.
- Absentee Landlords seek out a property manager’s help in looking after their rental property, which they no longer live near. They aren’t actively acquiring new properties. 17% of small-portfolio rental owners fit this profile in 2022, which represents a decrease of 4 percentage points over the past year.
Among the Accidental Landlords who have held onto their properties, their demand for property managers remains steady—and in fact, it’s higher than ever. There will always be homeowners with a property that they see the benefit in renting, but who don’t have the ability or the will to manage it themselves, even if these owners have come to represent a significant minority rather than a majority.
Accidental Landlords are still less savvy about real estate, less hands-on in running their properties, and more likely to own property for personal reasons. But in comparison with the Accidental Landlords of the past, many have acquired their properties in the last 5 to 10 years; and they’re more likely to view those properties as an investment, leverage them as a source of income or retirement savings, and turn to their property manager to help them increase their profits—and even explore the possibility of building out a portfolio. As a reputable, long-standing property management company in the Dallas/Fort Worth metroplex, Cousin James Management provides services to many accidental landlords, property owners, and rental property investors. Just as it has been for the last 25 years, Cousin James Management stands poised to take on the complete maintenance and management of your properties. In doing so, there’s time enough for property owners to enjoy the benefits and worry less about the heavy lifting. Contact Cousin James Management to find out how we can make your accidental landlord experience a positive one. And, if you have questions about renting your property, download this helpful Free Checklist.