Evicting tenants is one of the unintended consequences of owning property.
Even if you’ve bought the property through your pension and are using a letting agent (because the rules of pension-funded property ownership state that it must be an arm’s-length transaction therefore you must appoint an agent), you are not cosseted from the sometimes unpleasant process.
You more than likely know who your tenants are and unless you’ve had your head in the sand for the last few years, you know there is a chronic shortage of rental properties.
It isn’t easy for anyone to find a place to live right now.
The big, bad landlord
And yet, society never sees the landlord’s point of view. The landlord is always the villain of the piece. Nobody bothers to find out the landlord’s circumstances. Negative equity is often a factor; subsidising their tenant’s rent to pay the mortgage is too. Many landlords pay tax on rental income while not making a cent out of the property.
Whatever about having our eyes open to these risks now, post-property crash, back when many of us became landlords, the emotional drain of evicting tenants was not something we gave much thought to.
It’s just another reason why investing in property as a single asset class is not necessarily a good idea. Regular readers will know that I try to shine a light on all aspects – good and bad – of buying property as you can see here and here.
An emotional attachment to your investment
“I feel like a horrible person,” sobbed my wife’s friend on the phone, and if she were to go on Twitter and explain what she was doing, she would be made to feel a whole lot worse.
Be aware that owning property can lead to an emotional attachment, which can in turn lead to a moral dilemma for you when the time comes to divest yourself of the investment.
On top of that you will find little support for your side of the story.
This isn’t something you would experience when selling off a chunk of shares or closing a fund.
Before you make a long term investment in property, consult with a 3rd party – explore all options, positive and negative.