The risk in renting a home

[Caali]

An effort can be difficult if you are unprepared and ill-equipped for the task. Isn’t that the case for anything in life? Aren’t many efforts “hard” if you don’t know what to expect.

 

[Victor-t]

This whole thing is caused by the pandemic, your friend should take it as a loss in investment as a result of the coronavirus pandemic.
This should not discourage you from going into a similar investment as this is a very unusual situation that happened, renting a home is still very much profitable.

There are different risk in renting a home, part of it is the foundation of the house, i.e what the builder of the house might have use for the foundation of the house, but the solution to it is by praying before start living inside the place.

 

[Folaham]

My wife and I have a plan of building a duplex or apartment for renting out to tenants that will complement our retirement pension. It looks to be a safe investment. However, yesterday I was chatting with a long time friend who was complaining that the had lost 5 months of rental to the house that he owns. The tenant lost his job in the lockdown (March) and got back to his job after 2 months with a salary cut. The rental for 7 months was not paid. But as the owner, my friend couldn't evict the tenant because our government issued a new policy that tenants cannot be evicted for non-payment during the pandemic. My friend resorted to a compromise to let 5 months of rental be free if the tenant would leave at once. It was big money that he lost on that 5 months of unpaid rental.

Sighted here is one of the major risk in putting up our assets for lease/rent. Another most common is the accumulated damages to physical infrastructures with in the premises and most house owners won't get to know until the occupants vacate the space.
Cost incurred in putting them back in place most times can't be recover

 

[lelakil3]

My wife and I have a plan of building a duplex or apartment for renting out to tenants that will complement our retirement pension. It looks to be a safe investment. However, yesterday I was chatting with a long time friend who was complaining that the had lost 5 months of rental to the house that he owns. The tenant lost his job in the lockdown (March) and got back to his job after 2 months with a salary cut. The rental for 7 months was not paid. But as the owner, my friend couldn't evict the tenant because our government issued a new policy that tenants cannot be evicted for non-payment during the pandemic. My friend resorted to a compromise to let 5 months of rental be free if the tenant would leave at once. It was big money that he lost on that 5 months of unpaid rental.

It is a really huge money that expected 5months rental was not claim but this is not a trial and not occasional or maybe so but as of now since economic is again rising you can build a apartment as a business plan for retirement.

 

[Tariq Shehzad]

Here in my country, the risk of renting your house is those that uses it to carry out criminal act such as kidnapping and online fraud. You can be implicated without knowing. Also, there are tenants who finds it difficult to pay on time or at all. You end up spending extra money on a lawyer.

 

[Yewande]

I will look at this in 2 ways.
1: renting a house for you to stay in
2: renting a house out for your tenant.
I believe if you are renting a house to stay in, there's really no risk in it. Do you want to live under the bridge.
Now renting out your house requires contracts to be signed. What is affecting a lot of landlord is the refuse to register with an estate management agency. They decided to run their house themselves and tenant takes advantage of that.

 

[Nathaniel]

It is true that real estate investing can bring some serious returns in the medium and long run. Investing in real estate is often perceived as less risky than investing in stocks because you are very unlikely to just lose everything in real estate. However, people sometimes get the wrong impression that buying a rental property with the extra cash they have and a loan from the bank will definitely guarantee them quick returns with virtually no risk. If you yourself are considering buying a rental property and becoming a landlord, don’t be confused. Real estate investing is not risk-free.

 

[Abbas007]

I don't think renting a house is such a big risk because you don't have to invest in it anymore.
Yes, but one thing is for sure that when you have to vacate the house, you have to take good care of its demolition.

 

[Ziki]

Sometimes Tenant doesn't abide by the terms of the lease,This could mean ending the lease early, which will have great effect so it's disappointing violating any HOA rules or having unauthorized occupants.

 

[Rimsha kanwal]

Your home is one of the most important financial and investment assets that you own. Before you make a decision about whether or not to rent it out, it helps to discuss the pros and cons with a professional property management company so you better understand the risks associated with renting out a home.
Some of the risks include:

• Tenant not paying rent on time.
• Tenant doesn't maintain your home.
• Tenant doesn't abide by the terms of the lease,This could mean ending the lease early, violating any HOA rules or having unauthorized occupants.
• Your property ends up vacant. Whether your tenant leaves on his or her own, or is evicted, every day your property is empty is money lost to you as the landlor

 

[Setho]

I have always had this in the back of my mind that if am ever going to build a residential house for the public, then its either going to be an estate or a house in place dominated by students. Here where I live, tenancy laws do not mostly favors the house owners with some Tennant's staying for a year or more without paying and you will go through hell to chase them. Students are the ones which the laws are a more feasible to follow. A lodge or an estate is far preferable to me.

 

[mizzzlotam]

building to rent is not an investment for as far as am concerned. For the year 2019 up until now houses owners have suffered greatly. Building to sell is far more better. With the pandemic several tenants have defaulted in paying rent all blaming it on the pandemic.

 

[Azam786]

My wife and I have a plan of building a duplex or apartment for renting out to tenants that will complement our retirement pension. It looks to be a safe investment. However, yesterday I was chatting with a long time friend who was complaining that the had lost 5 months of rental to the house that he owns. The tenant lost his job in the lockdown (March) and got back to his job after 2 months with a salary cut. The rental for 7 months was not paid. But as the owner, my friend couldn't evict the tenant because our government issued a new policy that tenants cannot be evicted for non-payment during the pandemic. My friend resorted to a compromise to let 5 months of rental be free if the tenant would leave at once. It was big money that he lost on that 5 months of unpaid rental.

I think you are right but sometimes it happens that when we start any business there is a lot of loss.But something similar happened in my area There was a man who acted in such a way that he suffered a lot of losses They don't make as much money as they should I mean they don't pay according to the facilities available

 

[Olahab]

Investing in a rental property can be profitable but like any investment there are risks, plus the many responsibilities of being a landlord.

Post automatically merged: Jan 31, 2021

Investing in a rental property can be profitable but like any investment there are risks, plus the many responsibilities of being a landlord.

 

[Briangsam]

What happened to your friend is really disheartening but such doesn't happen in my country of birth. You pay at least 2years rent. The global pandemic isn't helping anyone's cause actually.

 

[Quert]

Maintenance is unavoidable on a rental property. Greater maintenance problems will cost tens of thousands of dollars. Any unforeseen expenses can be covered by insurance, but don't presume every major item will be covered. If you haven't properly budgeted for it in your monthly cash flow estimates, even small maintenance items will add up over time.

 

[Alogakho Esson]

In life every human who move about into different location of this world needs to rent apartment either temporary or permanent for the time being

 

[Azhar119]

There Are The Risks In Renting Out Your Home
Tenant not paying rent on time.
Tenant doesn't maintain your home.
Tenant doesn't abide by the terms of the lease,This could mean ending the lease early, violating any HOA rules or having unauthorized occupants.
Your property ends up vacant.

 

[Kelvin7656]

The following are the Risks In Renting Out Your Home?

• Tenant not paying rent on time.
• Tenant doesn't maintain your home.
• Tenant doesn't abide by the terms of the lease,This could mean ending the lease early, violating any HOA rules or having unauthorized occupants.
• Your property ends up vacant.

 

[KvngMurphy]

Although there are certain risks associated to renting a home but everyone's experience cannot be the same. If the funds for getting a personal apartment either by building or buying one is available then I strongly advice that you get urs.