Financial Risks

The rental prices tenants are willing to pay will depend on market conditions and the state of the home, and they will fluctuate.

If the area becomes more desirable, housing grows scarce or the property is particularly well kept and appealing, then rents may be go up.

Market changes can be unpredictable, however, and there is always a risk that rents will drop, making the home less profitable. Setting rents too high can drive away tenants, while setting them too low cuts profits, making it a difficult task.

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