Accidental landlords 'can access many benefits'

by Daniel Jones

Britain is full of people who have become accidental landlords, and they will be fully aware of some of the benefits this situation offers.

Ed Hammond, the Financial Times' US mergers and acquisitions correspondent, has written a piece in which he explained that he has discovered some of the plus points associated with becoming an accidental landlord.

He owned a home in London for less than a year before being posted to New York for work matters, and is now renting it out for a healthy monthly sum.

There are many Britons in a similar situation, having been unable to sell a property for the price they were hoping for and subsequently deciding to put it on the rental market instead, where they can at least enjoy income while waiting for the market to improve.

Mr Hammond admitted that he is extremely unlikely to secure the type of return he once dreamed of, but he still has "the income from my flat, less the mortgage payment, to bulk up my salary".

What's more, all the while Britons are acting as accidental landlords, they are paying off more of their mortgage, meaning the capital they are building in their property will be higher when they finally push through a sale.

With so many people forced to rent rather than buy a home in the modern world, there is plenty of demand from tenants for properties in many parts of the country. This should ensure that accidental landlords are able to find a tenant and keep their home filled the majority of the time.

Extra cash adds about a third to Mr Hammond's monthly salary, allowing him to enjoy a higher standard of living than he would otherwise have.

His case is further proof that owning a home and renting it out, even if it was not initially a priority, can be a lucrative and successful move.ADNFCR-1645-ID-801696954-ADNFCR

Published on: February 24, 2014

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