The Return of the Accidental Landlord in 2024

The housing market in Redding, CA, and across the U.S. has seen a few twists and turns lately. Home prices have stabilized, interest rates are bouncing around, and there's a growing demand for rental properties. All of this means one thing: the accidental landlord is making a comeback.

If you’re unfamiliar, an "accidental landlord" describes property owners who rent out their homes because of life changes rather than a planned investment strategy. Maybe it’s a job relocation, or maybe the housing market isn’t exactly playing nice, but either way, renting becomes the smarter option.

In this blog, we’ll chat about what it means to be an accidental landlord, why the current market makes it appealing (or even necessary), and how property management pros like us at Authority Property Management can help ease the transition.

What Is an Accidental Landlord?

Ever thought you’d become a landlord? Neither did most accidental landlords. It usually happens when homeowners have to rent their property out instead of selling it due to unforeseen circumstances. Maybe they’re relocating, maybe the market’s not ideal for selling, or maybe they’ve inherited a property. Whatever the case, renting becomes the go-to move.

Here are some reasons people find themselves in this role:

• Work relocation
• Inherited property
• Can’t sell due to market conditions
• Decided to downsize or upsize and keep the old place as a rental

Suddenly, you're a landlord—without even planning it. So, now what?

Why More Homeowners Are Turning Into Accidental Landlords in 2024

Redding’s housing market is creating a prime environment for accidental landlords. According to the August 2024 market report from the California Association of Realtors, several factors are pushing property owners to consider renting instead of selling:

Home Prices Are Dropping

In Redding, the median home price is currently $398,000—a 1.9% dip from last year. Some homeowners aren’t thrilled about selling at a lower price, so instead of taking a hit, they’re opting to rent their properties out.

Sales Are Up, but It’s Not Easy for Everyone

Home sales are up by 5.0%, with 106 homes sold in August 2024. But more sales also mean more competition. For those who can’t sell quickly, renting is a solid backup plan to keep the mortgage covered.

Active Listings Are Growing

There are currently 254 active listings in Redding—a 4.5% increase from last year. With more homes on the market, it’s taking longer for some to sell. Renting provides a quicker financial solution than waiting for the perfect buyer.

More Price Cuts Mean Tougher Selling Conditions

About 50.8% of homes on the market have cut their prices to stay competitive. Instead of slashing their price too much, many homeowners are choosing to rent out the property and wait for a market rebound.

The Perks of Becoming an Accidental Landlord

Even though it wasn’t part of your master plan, becoming a landlord has its perks. Let’s talk about some of the benefits:

Steady Income

Why let your home sit unsold when you could generate income from renting it out? Whether it’s covering your mortgage or saving for future repairs, rental income is money in the bank while you wait for better market conditions.

Wait Out the Market

Home values often appreciate over time. By renting your property instead of selling in a down market, you give yourself the luxury of time—time for the market to bounce back and potentially sell your home for more later.

Flexibility for Future Plans

If you move for work or personal reasons but plan on coming back, renting your home gives you flexibility. You can hang onto the property without locking into a sale you might later regret.

The Challenges of Being an Accidental Landlord

Of course, it’s not all smooth sailing. There are some challenges you’ll face as a landlord, especially if you’ve never done it before.

Managing Tenants

Tenant management can get overwhelming fast, especially if you’re not familiar with the ins and outs of property laws or handling tenant issues.

Property Maintenance

Keeping your property in good shape is important but can also get costly—especially if you don’t live nearby.

Legal and Financial Obligations

From lease agreements to understanding local housing regulations, accidental landlords have to stay on top of legal and financial responsibilities. It’s a lot to juggle if you’re new to this game.

This is where having a property management company (hey, that’s us!) can make a world of difference.

Why Authority Property Management Supports Accidental Landlords

At Authority Property Management, we know how to handle the heavy lifting so you can enjoy the perks of rental income without the headaches. We’ll take care of tenant screening, maintenance requests, and making sure everything’s in line with housing laws. Our team is here to help, whether you’re local or managing from a distance.

And here’s a fun fact: our Broker, Aaron Robertson, spent a year on the board of the North Valley Property Owners Association (NVPOA). That means we’re not just familiar with Redding’s property scene—we’re experts in it. Whether you’re dealing with a challenging tenant or trying to make sense of rental laws, we’ve got the experience to guide you.

Wrap Up

So, here we are in 2024, and accidental landlords are on the rise. With the housing market a bit unpredictable, renting out your property might be a better option than selling—at least for now. It offers you steady income, flexibility, and the potential for long-term gains. If you’re feeling a little overwhelmed about becoming a landlord, don’t worry. Authority Property Management is here to help take the stress off your plate. Contact us today to see how we can make managing your rental property easy and profitable.