The Hazards Of Being A Landlord, And What To Do When Things Go Wrong

The Hazards Of Being A Landlord, And What To Do When Things Go Wrong


April 28, 2025 | Miles Brucker

The Hazards Of Being A Landlord, And What To Do When Things Go Wrong


Being a landlord is often seen as a path to passive income and long-term wealth but there are many hazards that can turn a promising investment into a nightmare. From problem tenants to maintenance headaches, landlords must be prepared to do more than just collect rent. Knowing how to handle problems—including when your tenants are farming chickens—is key to protecting your property, your finances, and your sanity!

The Risk Of Problem Tenants

Even with thorough screening, tenants can become a source of major issues. Late payments, property damage, noise complaints, or even illegal activity can occur unexpectedly. A good lease agreement helps, but enforcing it can be costly and time-consuming if eviction becomes necessary.

Pavel DanilyukPavel Danilyuk, Pexels

When Repairs Become Endless

Minor repairs are part of being a landlord, but unexpected structural problems, plumbing failures, or electrical issues—especially in older homes or basement units—can spiral into expensive emergencies. These surprise costs can wipe out rental profits if you don’t have a solid maintenance fund.

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Legal Pitfalls And Liability

Landlords must comply with local housing laws, safety codes, and tenant rights regulations. A small oversight, like improper notice for entry or failing to meet ventilation standards in a basement unit, can lead to fines or lawsuits. Staying informed about legal obligations is critical.

Vacancy Periods That Drain Cash Flow

An empty unit doesn’t just pause income—it actively costs you money. Mortgage payments, utilities, and maintenance continue even when there’s no tenant. Unexpected vacancies due to market shifts or tenant turnover can destabilize your finances if you haven’t planned for downtime.

652234652234, Pixabay

Neighbor Disputes That Drag You In

If your tenants disturb neighbors—whether through noise, parking issues, or other behavior—you may find yourself mediating disputes you never anticipated. A tenant’s actions can damage your reputation in the neighborhood and even attract attention from local authorities or housing boards.

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Property Damage Beyond The Security Deposit

While security deposits offer some protection, severe tenant damage can far exceed what you’ve collected. There are some real horror stories out there. From broken appliances to intentional vandalism or undiscovered water leaks, repairs can be extensive—and recovering costs through legal action isn’t always successful. 

Build A Financial Cushion

Always maintain a reserve fund specifically for rental property emergencies. Aim for at least three to six months' worth of expenses, including mortgage payments, to cover repairs, vacancies, or legal fees without jeopardizing your personal finances.

RDNE Stock projectRDNE Stock project, Pexels

Know Your Local Laws

Stay educated about landlord-tenant regulations in your area. Join landlord associations, consult property lawyers, or take courses to ensure your lease agreements, eviction processes, and property conditions meet legal standards and protect you from liability.

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Screen Tenants Thoroughly

Invest time in background checks, credit reports, and reference calls. While no screening process is foolproof, careful selection reduces the risk of problematic tenants. Trust your instincts—if something feels off during interviews, it’s better to wait for a qualified renter.

Conduct Regular Inspections

Schedule periodic property inspections with proper notice. This helps catch maintenance issues early and ensures tenants are respecting the space. Document everything to create a clear record in case disputes arise later.

File:Plumber at work (retouched).jpgphoto taken by flickr user rick, Wikimedia Commons

Consider Hiring A Property Manager

If managing tenants and maintenance becomes overwhelming, a property manager can handle day-to-day responsibilities. Though they charge a fee, their expertise can save you from costly mistakes and free up your time—especially if you own multiple units.

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If Your Tenants Are Farming Chickens

Check your lease agreement to see if it prohibits livestock or unauthorized use of the property. If it does, notify your tenants in writing that they’re in violation and request immediate removal of the chickens. If they refuse, you may have grounds for eviction. Also, review local bylaws—some areas restrict backyard farming. Consult a lawyer or property manager to ensure you handle the situation legally and effectively. 

Be A Prepared Landlord, Not Just An Optimistic One

Renting out property isn’t as passive as it seems. The unexpected hazards of being a landlord can turn profitable ventures into financial headaches without proper preparation. By building safeguards, staying informed, and approaching property management proactively, you can navigate challenges and ensure that when things go wrong—as they often do—you’re ready to handle them effectively.

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