The 4 Main Risks of Owning Rental Properties (& How to Mitigate Them) | Daily Podcast

Most would argue that the risks of owning rental properties are fairly obvious, yet you’d be surprised how many people ask me what they actually are. If you are brand new to real estate investing, it would make total sense that you might not completely understand the specific risks in a way that allows for a bigger-picture view. This is simply because you don’t know what factors to look at. Or even if you aren’t brand new, sometimes it’s just helpful to get a very general overview of things as a way to help drill it in and help you better understand it.
Before even talking about the risks, one thing you want to be very clear about when it comes to rental properties are the numbers. I didn’t know a thing about how to run numbers on a prospective rental property when I first got interested in real estate, and I’ve since learned that most people really don’t have a clue about them.
The truth is most properties don’t make good rental property investments!
I usually hear it’s in about the 80% range that properties actually don’t pan out financially as rental properties. Why is this? Because the numbers don’t work.
What do I mean “the numbers don’t work”? It means that your actual expenses (which are usually more than what people realize) exceed the income on the property, and therefore, you lose money. Losing money is not the point of investing. Making money is.
For help on understanding exactly how to run numbers on a rental property, check out “Rental Property Numbers So Easy You Can Calculate Them on a Napkin.”
Why am I mentioning the numbers?
Because all risk involved with rental properties is directly related to the numbers. I can tell you the risks of rental properties, and you will understand them well enough. But if you really understand more about the numbers and what goes into actually receiving returns from them, the risks will just make all that much more sense.
Now for the risks!
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[@rdarrett3635]

Like these short audios that I can listen to while I’m on breaks during work.

[@gravitybounce6877]

3:10 You're welcome

[@LouBloom21655]

I always fast forward these blog audios to 2 minutes. And usually it's still gibberish

[@bikenraider99]

Good information and topic. Risk is something I start with in an analysis and then decrease from there (years of working in insurance and financial services). Alot of the currriculum I've come across overlooks real estate risk.

[@harryhunter7872]

I tell everyone interested in getting into rentals their #1 cost will be vacancies. They rarely understand as they don’t write checks for that expense.

[@Woodshadow]

it is quite amazing how this works across all kinds of industries. If there are no customers then there is no revenue. People open businesses all the time thinking it will be all sunshine and lollipops and don't realize what happens when no one is paying for your product. Rentals are a business just as a restaurant is a business

[@AlanCraft55]

Good info

[@OmahaTonyG]

Good video. I agree that the biggest problem is newer investors running the numbers incorrectly.

[@AskArianne]

So important to think of these. Thanks for sharing!

[@chrisortega5476]

Love it

[@CaseyBurnsInvesting]

Going in half cocked is the kiss of death in Real Estate. Thanks for providing this valuable info.

[@AryaRealty]

Great video

[@jaewhite2462]

Hey, so just saying, Corey Taylor from slipknot and stone sour is a Real Estate investor. He also loves podcasts.

[@likes-yv3lj]

4 factors
Vacancy
Damage/repairs/MX
Rent amount
Lose of property value

[@chriswhynder8311]

thanks!

[@ferencvad8251]

Vacancy no problem if property maintained properly. Keep rent reasonable not cheap but don’t be greedy. Property value will always go up and down. But it at down time sell it at up time.

[@JadeTrading]

Thank you for sharing

[@jackpalmer6253]

Landlords are reaching for what they're asking for Toronto condos nowadays. Must be painful for them. Rents still have a ways to adjust in my opinion

[@LoriLivers]

great easy to understand of the risks - thanks!

[@jeanalexandre1105]

Number one rule to buying rental property don't love the house love the d e a l

[@pinnedcomment8614]

Fun fact: the word "long" is shorter than the word, "short"

[@matthewconner463]

AUDIO ✊🏾🎩INVESTMENT

[@AryaRealty]

Who here has rental properties?

[@KidCity1985]

Me

[@OlleyThorpe]

👌🏻👌🏻

[@MoneyMike2002]

lol theres about 1,000 more risks to not owning a rental property look at the data