‘Accidental Landlords,’ the new phenomenon hitting the Colorado Springs housing market

COLORADO SPRINGS, Colo. (KRDO) -- As homes sit stagnant on the Colorado Springs housing market, selling for prices lower than this summer, many property owners are deciding to rent out their homes, becoming what realtors are calling "accidental landlords."

Drew Bartlett, a Business Development Manager for Dorman Real Estate, says the phenomenon happens when property owners are unable to get the selling price they hope for.

Data from the Pikes Peak Association of Realtors shows that the average and median selling prices for homes in Colorado Springs this October, are lower than the summer months.

Additionally, the group shows homes are spending 32 days on market on average, the highest this year.

The Realtor Services Corporation attributes the dormancy of the market to the Fed's latest interest rate hike, which brought the interest rate for a 30-year fixed mortgage to 7.32%.

"People who were debating if, 'I'm going to sell or if I'm going to rent' saying, well, I can't get that huge number," said Bartlett. "So renting is probably a better investment option."

Yet Bartlett says the position of "accidental landlord" comes with more responsibility than many property owners aren't prepared for, bringing added difficulties to owners who can't address issues at their property because they have moved away from the city.