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Accidental Landlord Population on the Rise

Your next target market?  Burnt out landlords…most of them never wanted to be a landlord in the first place.  If enough of these people get frustrated with being a landlord, this could add to the short sale (or REO) inventory. 
Accidental Landlord Population on the Rise
Posted by Carole VanSickle on Monday, September 26th 2011
According to the Harvard Joint Center for Housing Studies, the number of formerly owner-occupied homes turned into rentals is soaring. In fact, in 2009 nearly a quarter of single-family detached rentals had been owner occupied in 2007, and the numbers are just going up[1]. Given that rents are soaring, that seems like a great solution to the growing problem of selling a house for a profit in today’s market. However, the center also reported that thanks to underwater mortgages and the new landlords’ inexperience with the rental process, often the new rentals are not actually generating enough cash flow to cover expenses or the landlords are losing money.

Many of these unwilling landlords are finding themselves in an ethical quandary because their other option with their property is to simply default on the mortgage and let it go back to the bank[2]. Still others are just hoping to hold on and manage to stay in the game long enough for the housing market to recover to the point where, as one homeowner describes it, she doesn’t have to “come to closing with 30 grand” to settle the difference on the home. Analysts are advising these landlords to be prepared for at least a five-year wait.


September 28, 2011 - Posted by | Uncategorized | , , , , ,

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