Sunday, May 16, 2010

The Accidental Landlord...

Back from Korea. And, I'm more and more curious about this continued growth in the number of unintended landlords:

Like many homeowners in the housing downturn, Amaya became an unintentional landlord by renting out a property he once hoped to sell. How many homeowners are in this category is difficult to know.

Anecdotally, realty agents say it is more common, and more competitive, than ever. As home sales have stalled in recent years and foreclosures have risen, homeowners who need to move on and those who have inherited property are turning to renting to help cover costs.

One of the main issues that has piqued my interest as the summer progresses and turns into fall (which, in turn, means the return of Property I and Landlord/Tenant/Leasehold estates) is how legally prepared these homeowners are for becoming landlords.

Issues like liability, insurance, business licenses, LLC/sole proprietor/corporation all can come into play when you start engaging in the business activity of leasing (even if just one unit).  Many times, I've noticed property rental companies handling these issues but the sense around here seems to be that many people are trying to avoid even that cost because funds are so tight.

So, I'm interested in learning more (even if just anecdotally) on how prepared homeowners are for entering the business world of being a landlord.  Email me at cemerson@faulkner.edu if you have any good input.

--Chad Emerson, Faulkner U.

http://lawprofessors.typepad.com/land_use/2010/05/the-accidental-landlord.html

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