There’s a concerning force at play in the housing market: the emergence of accidental landlords. Accidental landlords can be a result of people inheriting property from a relative but choosing not to live in it. Maybe they tried to list their home for sale, but interest rates are too high for it to sell. Or maybe they realized they could buy a second home and rent their first home for a higher price than their mortgage payment.
Over the past few years, you may have experienced a wild swing in the housing market. We went from historic mortgage interest rate lows in 2020 and 2021, to higher rates in October 2023. And this wild ride isn’t likely to end soon – home prices are poised to spike 7% in 2024. This has the potential to make mortgage payments more expensive, potentially hundreds or thousands of dollars more than you would have paid if you had bought a home in 2020 or 2021.
When these conditions collide, it’s easy to see more people are choosing to rent, rather than buy, a home. In fact, recent research shows that 35% of American households rent versus own their homes.
This means that you could potentially be renting from landlords who may be unprepared for the work it entails. They could be inexperienced in managing household repairs, not know how to draft a proper lease agreement or not have enough time to properly deal with the day-to-day issues that arise.
So how could renting from an accidental landlord impact your day-to-day living situation? Adding on the stress of a landlord disagreement or housing problem can lead to major disruptions in your day. Instead of being able to focus on your career, family and friends, you might spend time thinking about a leaky faucet or unfair rent increases. But luckily, as an ARAG member, you have access to network attorneys who can help with issues like the ones listed above. A quick call to an ARAG attorney can help you determine if your issue is a legal one, and they can write demand letters as a potential first step to helping you resolve the problem.
Tenant rights can vary from state to state but all renters deserve to be protected in their living space. This is when access to an attorney can be invaluable. You could also work with a network attorney to help you address lease contract disputes, eviction, security deposit issues, tenant disputes and more with your landlord or property manager.
So if you’re facing a tricky situation with an unprepared landlord, or any other legal issue, don’t forget you have access to experienced network attorneys. When you need to get started dealing with a legal issue, ARAG is here to help. Start a case online or contact our experienced Customer Care team to request a case and confirm coverage for your legal matter.
Plan coverage may be unavailable, vary or be limited to a specific number of hours. For matters that aren’t covered and are not excluded, members may be able to receive 25% off network attorney fees. To view your plan-specific coverage details, visit ARAGlegal.com/member/plan-details or contact ARAG Customer Care.
Limitations and exclusions apply. Depending upon a state’s regulations, ARAG’s legal insurance plan may be considered an insurance product or a service product. Insurance products are underwritten by ARAG Insurance Company of Des Moines, Iowa. Service products are provided by ARAG Services, LLC. This material is for illustrative purposes only and is not a contract. For terms, benefits or exclusions, contact us.
