Global Opportunities Beyond the Radar

Real Estate: The Risks You Face As a Landlord


You aren’t exactly spoiled for choice when you decide to invest your money.

You could invest it in gold, forex, stocks, and the different types of real estate that are open to you.

These are just a few examples and you can probably think of others.

If real estate is what appeals to you most, you could make a lot of money from your income property if you decide to become a landlord.

The rewards are many and these include:

On both a financial and a personal level, these are just some of the rewards you can expect.

However, as with all types of investment, there is an element of risk involved too.

Unfortunately, these risks can also lead to a reduced income, so they are worth taking into consideration.


#1: Difficult tenants


Good tenants aren’t difficult to find but there is always the risk of a bad one. And by ‘bad,’ we mean somebody who fails to pay their rent on time (if at all), and who leaves your property in a bad state of repair.

You might also have to deal with tenants who get into trouble with the law, such as those that cause problems to their fellow neighbors.

You will face quite the expense if you have to make repairs to any damages caused, and the eviction process could be quite costly too.

You might also struggle financially if you haven’t received your rental income. 

To overcome this issue, do what you can to prevent a problem tenant.

Carry out the appropriate background checks and interview the prospective tenant before signing a contract.

You will get a better impression of the person this way and you might sidestep any potential issues later. 



#2: Ongoing maintenance


You’re responsible for the ongoing maintenance of the property. This means dealing with any broken appliances that were already installed in the property and managing both internal and external repairs to the building.

You might also have to deal with phone calls from your tenant in the middle of the night if something goes wrong.

There are obviously financial repercussions here, but there will be consequences for your time too.

You will sometimes be at the beck and call of your tenants, so you will have less free time than you used to. 

Thankfully, there are ways to reduce this risk.

For one, you can make all the necessary property checks before investing in something. You can avoid a potential money pit this way, so be sure to hire a property inspector.

Secondly, you could hire a property management company akin to North Texas Property Management. They will manage your property for you, so while you will have an added expense, you will have less inconvenience when it comes to your time. 




There are risks involved with any investment strategy, but it is possible to reduce them.

This applies to any form of real estate investment, so despite the expenses you might face, you should also keep the financial rewards in mind.

Commit to research when buying property, try to find a low-interest mortgage, and if becoming a landlord, vet your tenants.

By taking these steps, you should make a profit with your venture. 


(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)

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