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Accidental Landlords Flood Rental Market
22 Mar
Summary
- A near-record 2.2% of Zillow listings were previously for-sale homes.
- Houston leads markets with 4.2% of listings from accidental landlords.
- Accidental landlords face risks like property damage and tenant disputes.
A significant portion of rental listings, nearly 2.2% in November, are from homeowners who are now landlords out of necessity. This trend, peaking in markets like Houston with 4.2%, reflects a challenging housing market where selling has become difficult. Homeowners are turning to rentals when buyer interest wanes.
These 'accidental landlords' often find themselves unprepared for the responsibilities, including property damage and tenant issues. Real estate agents caution clients about potential liabilities, such as tenant lawsuits or accidents on the property. Many sellers eventually choose to sell, but some, especially those with lower mortgage rates, find renting financially viable.
The increased supply of rental homes from these sellers has also contributed to a slowdown in rent growth. Single-family rents saw their slowest annual increase in February since 2015. This seasonal rise in accidental landlords typically occurs before the holiday season, a historically slow period for home sales.
