The Accidental Landlord and How to Work with Them
Accidental Landlords came to own rental property for circumstantial reasons—for example, a home that they inherited or used to live in, but weren’t yet ready to sell. They don’t consider themselves investors and are extremely unlikely to plan on acquiring additional rental properties. 29% of small-business rental owners identify with this profile in 2021, a decrease of 4 percentage points since 2018.
- Find out what their property means to them. For some Accidental Landlords, their rental property represents their retirement. For others, it’s a home that they or a beloved family member once lived in. You’ll find it easier to satisfy these clients if you learn the emotional considerations that underlie the decisions they make for their property.
- Don’t forget that their property is also a passive source of income. Though sentimental reasons are common among Accidental Landlords, 1 in 2 own rental property for the income it provides. This means that it’s important to balance empathy and practicality in your approach to managing their properties, particularly if they or their residents are experiencing financial instability during COVID-19.
- Seek to solve their 3 greatest sources of stress. Nearly half of Accidental Landlords are retired, and just as many have a full-time job that’s unrelated to their rental property. For these owners, day-to-day issues at their rental properties may be the last thing they want to think about. Find out the pain points they’re hoping to address by hiring a property manager—such as chasing down rent payments, filling vacancies with high quality tenants, and addressing maintenance requests—to understand how they’ll evaluate your success.
- Provide them with peace of mind from afar. 77% of Accidental Landlords who work with a property manager do so because they don’t live near their rental property. It’s critical to reassure these owners that you’re there to prevent and handle any issues that arise with their property or their residents. In addition, it’s important to assure them that you have the expertise to run their properties in compliance with changing regulations and pandemic guidance in your area.
Looking for more tips on how to many properties and their owners? Contact Cosmo Management Group today and speak to one of our representatives.