The 7 Biggest Challenges of Owning a Rental Property

Investing in rental properties can be a great way to generate passive income, build long-term wealth, and diversify your financial portfolio. But despite the benefits, being a landlord comes with a unique set of challenges—some of which can turn a promising investment into a stressful, time-consuming burden. Not all people are built to be landlords, and before diving into rental property ownership, it’s important to understand the difficulties that come with the role.

Here are the seven biggest challenges of owning a rental property and how they can impact your investment.

1. Tenant Issues

One of the biggest headaches for landlords is dealing with tenants. While some renters are responsible and pay on time, others may be late on rent, cause property damage, or violate lease terms. Even with thorough screening processes, there’s no guarantee a tenant will be trouble-free. Evictions can be long and expensive, requiring legal action and months of lost rent.

• Solution: Conduct strict tenant screening, require security deposits, and have a clear lease agreement.
• Resource: Ohio Landlord-Tenant Laws

2. Maintenance & Repairs

Owning rental property means you’re responsible for ongoing maintenance and unexpected repairs. From leaky pipes to broken furnaces, property issues arise at the worst times. Ignoring small problems can lead to bigger (and more expensive) repairs.

• Solution: Set aside at least 10-15% of rental income for maintenance expenses and build relationships with reliable contractors.
• Resource: City of Cleveland Rental Registration & Code Compliance

3. Constantly Changing Landlord Laws & Regulations

Being a landlord isn’t just about collecting rent—you have to comply with local, state, and federal laws. In cities like Cleveland, landlord laws constantly change, including rental registration, lead-safe certification, and eviction rules. Failing to comply can result in hefty fines.

• Solution: Stay informed by following Cleveland’s Department of Building & Housing updates and consider hiring a property management company to handle compliance.
• Resource: Cleveland’s Changing Landlord Laws

4. Dealing with Vacancies

A rental property isn’t profitable if it sits empty. Finding and keeping good tenants is critical, and each vacancy means lost rent, turnover costs, and marketing expenses.

• Solution: Keep rental prices competitive, offer incentives for renewals, and maintain the property well to attract long-term tenants.
• Resource: Zillow Rental Market Data

5. Rent Collection & Cash Flow Problems

Not all tenants pay on time, and some may stop paying altogether. Unpaid rent disrupts your cash flow and makes it difficult to cover your mortgage, taxes, and maintenance costs.

• Solution: Require automatic online rent payments and enforce strict late fee policies to encourage timely payments.
• Resource: BiggerPockets Guide to Rent Collection

6. Time Commitment & Stress

Being a landlord is not a passive investment. It requires time, effort, and patience. Between managing repairs, handling tenant complaints, legal compliance, and accounting, many landlords find themselves overwhelmed. Not all people are built to be landlords, and some investors realize they don’t have the time or temperament to handle the stress.

• Solution: If landlording feels overwhelming, consider hiring a property management company or selling the property for cash to a real estate investor.
• Resource: Should You Hire a Property Manager?

7. Property Depreciation & Market Fluctuations

While real estate tends to appreciate over time, market downturns can lower property values and impact your investment. Additionally, high repair costs can eat into profits, reducing long-term returns.

• Solution: Focus on buying in desirable neighborhoods, stay updated on market trends, and have a long-term exit strategy.
• Resource: National Association of Realtors Housing Market Forecast