Owning a rental property can be an excellent investment, offering a steady stream of income and long-term equity growth. However, many landlords quickly discover that renting comes with its fair share of challenges and financial risks. While most property owners plan for routine maintenance and occasional vacancies, fewer are prepared for the bigger, more costly issues that can arise with tenants.

The Costly Risks Landlords Face

The unfortunate reality is that even the most responsible landlords can encounter problems with tenants that lead to major financial losses. Here are some of the most common risks rental property owners face:

1. Loss of Rent

A non-paying tenant is one of the biggest fears for landlords. If a tenant stops paying rent, eviction can take months, and during that time, you’re left covering the mortgage, property taxes, and maintenance costs out of pocket. Could you afford to go weeks or months without rental income?

2. Eviction Costs

Evictions aren’t just stressful—they’re expensive. The legal fees, court costs, and sheriff fees associated with evicting a tenant can add up quickly. According to industry estimates, an eviction can cost landlords anywhere from $3,500 to $10,000, depending on the complexity of the case.

3. Tenant Malicious Damage

While most tenants take good care of the property, some do not. Malicious damage—whether due to frustration over an eviction, disputes, or outright neglect—can leave landlords with hefty repair bills. Unfortunately, traditional homeowner’s insurance does not cover intentional damage by tenants.

4. Legal Liability and Lawsuits

Landlords are often unaware of their legal risks. If a tenant or their guest is injured on the property, they may sue you for damages. Most landlord insurance policies offer limited liability protection, which may not be enough in the event of a serious claim.

Protecting Yourself Against These Risks

Many landlords assume that standard insurance policies will cover these scenarios, but the reality is that most do not. That’s where specialized landlord protection services, like the ProtectionPlus Bundle, come in.

What is the ProtectionPlus Bundle? The ProtectionPlus Bundle, offered exclusively through SureVestor Inc for Blue Door Residential Property Management clients, is designed to help landlords safeguard their investments against some of the biggest financial risks they face. Unlike traditional insurance, which has many exclusions, this comprehensive plan includes:

  • Tenant Malicious Damage Protection – Up to $35,000 in coverage for damages caused by tenants.
  • Loss of Rent Guarantee – Covers up to 25 weeks of rent loss if a tenant stops paying.
  • Eviction Cost Protection – Provides up to $5,000 for legal fees and an additional $600 for sheriff costs.
  • Lawsuit Protection – $1,000,000 in liability coverage, which is double what most standard dwelling policies offer.
  • Theft & Damage Due to Theft – Covers up to $15,000 in theft-related losses and rekeying if a tenant skips or is evicted.

Why Should Landlords Consider Extra Protection?

Many landlords don’t realize how financially vulnerable they are until it’s too late. A single eviction or a tenant-caused damage claim could set you back thousands of dollars. Worse, these events can lead to unexpected financial strain, disrupting cash flow and long-term profitability.

By having a safety net in place, you can rent with confidence, knowing that your property and finances are protected from the unexpected.

How to Get Covered

The ProtectionPlus Bundle is only available through property management companies such as Blue Door Residential Property Management, meaning individual landlords cannot obtain this coverage on their own. If you’re interested in learning more about how this protection can give you peace of mind and help you safeguard your rental investment, visit Blue Door Residential Property Management’s ProtectionPlus page.

Final Thoughts

Being a landlord can be rewarding, but it also comes with risks. Planning ahead and having the right protections in place can mean the difference between a profitable rental property and a costly financial mistake. If you’ve ever worried about non-paying tenants, evictions, property damage, or lawsuits, now is the time to explore solutions that will keep your investment safe.

If you have questions or would like to discuss property management services for your investment property, give us a call at 443.252.3385 or email us at info@bluedoor-pm.com today!

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