You might have seen the term â€˜accidental landlordsâ€™ floating around lately. Of course, your traditional image of a landlord is someone who owns a number of properties on top of their own home and they knock on the door holding a bill when the rent is due! However, over the last ten years, numerous innovations have really started to enter the property letting market.
Because of this, weâ€™ve started to see the rise of â€˜accidentalâ€™ landlords; that is to say, landlords who are letting in less than traditional ways. Accidental landlords might not consider themselves to be landlords in the strict sense, but theyâ€™re still in the property market for yields and gains. But, where do the opportunities lie?
Making Use of Extra Space
Youâ€™ve probably read the several news features lately on the cost of a square foot of property in New York, London and wherever else! All these figures demonstrate is that, worldwide, space is in high demand and, if youâ€™re not making use of it, itâ€™s an opportunity which you might be able to make use of.
Countryside property owners often have outhouses or barns which are unused and could be fit for residential space. Even in the city, many apartment owners havenâ€™t really considered the possibility of turning the space they have into something more economical. Why not split your two-floored flat into two separate apartments? Given todayâ€™s credit markets, the rent from one could be sufficient to pay off a mortgage on both!
Letting in Lodgers
Not only is demand for housing a big deal in the cities, but demand for single rooms is high on the priority list. If youâ€™ve got a room you donâ€™t use or a spare loft then why not consider letting in a lodger? A little extra rent can help you pay off your borrowings just that bit faster.
Of course, a lodger doesnâ€™t just have to pay in cash. Perhaps youâ€™ve got space for a live-in nanny who could be paid in board and lodgings? Itâ€™s common now for families in popular cities to host exchange students. Why not give up that junk room you never use and take the opportunity to have a live-in Spanish tutor?
Many of us donâ€™t realise the potential that lies in our own homes, but from an entrepreneurâ€™s perspective, every day your home is not occupied, either by you or someone else, itâ€™s space thatâ€™s going free! For this reason, the holiday swap has become extremely popular in recent years.
Many of these things are best kept simple, and you would be amazed at the attention an online ad can attract. Why not pay for your next family holiday by letting out your property for the weeks youâ€™re away? It takes a little preparation, but it can be an excellent way to fund your next trip away!
Of course, there are lots of financial considerations for accidental landlords, and if you are thinking of letting your property in an unorthodox way, youâ€™ll probably need to tell your bank or mortgage provider. You may also need landlord insurance, but companies like PropertyQuoteDirect can offer short-term, personalised cover for anyone letting their space in a more unusual way!