Renting out real estate in Irvine can be an excellent way to make some extra money from a property you own, but it does come with some potential risks. No matter how cautious you are during the rental process, you could end up in some unexpected and inconvenient situations. If you’re a prospective landlord, be aware of these seven risks associated with renting out your own home.
1. Not Being Able to Collect Rent
Not being able to collect rent is almost every landlord’s worst nightmare for a reason. Tenants who refuse to pay their rent can be very tricky to handle, especially in states with a lot of tenant’s rights laws. You may end up spending a lot of money and effort to evict the tenants.
2. Encountering Unexpected Repair Costs
Ideally, the rent you collect will be more than enough to handle basic maintenance for your home. Issues could arise if you end up facing big problems like broken pipes, fires, or natural disasters. As a landlord, you will be responsible for fixing the issue as soon as possible.
3. Running into Problems with Homeowners Associations
Make sure you know the rules of your homeowners association, condo board, or any other controlling group associated with the area you live in. Some associations may not allow tenants, so you might end up with a bunch of arguments and fees if you decide to rent.
4. Having a Tenant Who Damages the Property
When you rent your own property, you run into the risk of having a tenant who damages it. If the tenant trashes your home, you may get stuck with the hassle of fixing up the property again. In the worst-case scenario, it may be difficult to collect the price of repairs from the tenant.
5. Spending Too Much Time on Rental Business
Many landlords are surprised to realize just how much renting can be a drain of their time. As a landlord, you might end up spending hours repairing the house, collecting rent from tenants, searching for new tenants, talking to lawyers, and filing taxes. Being a landlord is not an easy way to just sit back and collect money, so you need to be prepared for this risk when renting.
6. Being Liable in Dangerous Situations
As a landlord, you may be liable in certain situations that involve physical accidents or damaged possessions on your property. You can get liability insurance to offset this risk, but that is an added cost.
7. Getting Stuck with a Vacant Property
If the real estate market is in bad shape, being a landlord may not be a reliable source of income. Some landlords find it difficult to attract tenants. You may get stuck paying all the taxes and maintenance for a property while it sits vacant for weeks.
Whether you’re looking for a property to rent out or use as your primary residence, there are plenty of houses, townhomes, and condos in Irvine for sale. Reach out to the reliable agents at OC Residential for help finding the perfect property. Call 714-454-6304 today to begin your search.