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8 Strategies to Lower Your Real Estate Investing Risks as a Landlord

Real estate investing can be a lucrative venture, but it comes with risks. From high vacancy rates to property management issues, a landlord faces many challenges that might harm their investment. 

In this article, we’re going to explore some of the risks of landording and some key strategies that can help lower these real estate investing risks.

Thorough Tenant Screening

One of the most critical steps in risk mitigation is thorough tenant screening. Conduct comprehensive background checks, verify employment and income, and contact previous landlords. This diligence helps ensure you select responsible tenants who are more likely to pay rent on time and take good care of the property.

Clear and Comprehensive Lease Agreements

A well-drafted lease agreement serves as the foundation of a successful landlord-tenant relationship. Clearly outline expectations, responsibilities, and any rules or regulations. Include provisions for rent, late fees, and maintenance responsibilities to avoid any ambiguity.

Read this: What Makes a Good Lease Agreement?

Regular Property Inspections

Regular inspections provide an opportunity to identify and address maintenance issues early, preventing them from escalating into costly repairs. In most cases, landlords are required to provide tenants with advance notice (usually 24-48 hours) before conducting an inspection. This notice allows tenants to prepare for the visit.

Conducting inspections is a proactive approach that helps maintain the value of your investment and ensures a safe and habitable living environment for your tenants.

Proactive Maintenance and Repairs

Addressing maintenance issues promptly is crucial. Neglecting repairs can lead to more extensive and expensive problems down the line. For example, a small leak can lead to water damage, mold growth, and structural issues over time.

Tip: Establish a reliable network of contractors and service providers to ensure quick and efficient resolutions.

Read this: How to Find a Reliable Contractor for Your Rental Property

Property Insurance and Liability Coverage

Here are some key reasons why property insurance is essential:

  • Property insurance provides coverage for various types of damage to the rental property. This can include damage from events like fires, storms, vandalism, and other perils.
  • Some policies offer coverage for loss of rental income due to covered events, such as a fire or natural disaster that renders the property uninhabitable.
  • Property insurance can extend coverage to additional structures on the property, such as sheds, garages, or fences.
  • Knowing that the property is insured provides peace of mind for landlords. They can have confidence that, in the event of an unexpected incident, they have financial protection in place.

Emergency Response Plan

See to it that tenants know how to respond to situations like water leaks, electrical problems, or natural disasters. Provide contact information for emergency services and create a protocol for reporting urgent issues.

Build Positive Relationships with Tenants

Maintaining open communication and a positive rapport with tenants can go a long way in preventing conflicts and addressing issues amicably. Moreover, when tenants feel heard and valued, they are more likely to be satisfied with their living situation. This can lead to longer lease agreements and a lower turnover rate.

Diversify Your Real Estate Portfolio

Spreading your investments across different types of properties or in different locations can help mitigate risk. This diversification strategy reduces the impact of market fluctuations or localized economic downturns on your overall investment portfolio.

Read this: How to Diversify Your Real Estate Portfolio


Lowering real estate investing risks is a huge aspect of being a successful landlord. Safeguard your investment and ultimately achieve long-term financial success in the real estate market with these tips.