04 Jan Military Landlord by Accident
Being a landlord isn’t for everyone. It’s time-consuming, exhausting, and stressful, so it should not be a decision that is made lightly. While most people actually have plans to become a landlord, others may be thrown into it unexpectedly. If you’ve accidentally become a landlord, don’t be afraid. Sound Choice Real Estate Property Management is here to help with some tips and advantages of being a landlord.
Advantages & Tips
What does it mean to be a landlord by accident?
A landlord and a landlord by accident both have one thing in common, they’re both trying to manage real estate property. The path that they took to become a landlord is really the only difference.
- Your typical military landlord is a property owner that acquired a primary residence with an understanding that they would eventually be receiving PCS orders. At that point they would begin to rent their property and become a landlord.
- A landlord by accident, however, is exactly that: unplanned, unexpected, unprepared. How does someone accidentally become a landlord?
Here are a few scenarios of how this can happen to Military property owners:
- PCS orders or deployment come much quicker than expected. If this happens, you probably don’t have enough time to prepare your home to sell and receive the fair market value.
- You’re attempting to move outside of peak PCS season. Most of us know that the ideal time to sell your home is in the spring and early summer. You’ll find that selling your home during that time frame can be difficult and you could also take a huge hit financially.
- Your home isn’t selling fast enough. Even if you have enough time to get your home prepped and ready to sell before it’s time to move, there’s another potential obstacle — your home isn’t selling fast enough to make your next report date. Add a failed inspection or loan appraisal to the mix, and you’re way past your deadline.
- You’re dealing with a buyer’s market. You aren’t in the position to make a profit, or you would lose money if you sold your home now, but the value would increase if you were patient and let the market rise.
There are some positives to being an accidental landlord.
Even though “accident” is in the name, becoming an accidental landlord can still benefit your finances.
- Passive income. Being military, you already know how hard it can be to generate a second source of income. Real Estate investments are a great solution. If you have the ability to hold onto a primary home and rent it out to other military families, then you’ve just found a way to create a passive income.
- Increase equity. In most instances, the longer you own your home, the more equity you’ll build up. Mix that with a positive change in the market and your home’s value could grow exponentially!
- You may live in that home again. This one is actually quite common! If your property is near a very popular military base that you may be returning to or decide to retire nearby, then this will make for an easy transition— with no need to search for a home when you return!
If you’ve accidentally become a landlord, relax and breathe. While it might not have been what you had planned for, this situation can possibly set you up great success. You may find that you actually enjoy it!
Need Help? Sound Choice Is Here for You!
Sound Choice offers full-service property management for the Gulf Coast of Florida in Niceville, Destin, Crestview, Fort Walton Beach and the surrounding areas. We are dedicated to providing a maximum return on your investment and eliminating hassle and stress.