CalculateRealEstateROI

Risk Management

Tenant Default Risk

Probability that a placed tenant fails to pay rent in full.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

Mitigated by screening, security deposits, and rental insurance products.

Examples

  • 3% bad debt typical in screened Class B; 8%+ in unscreened Class C.

Common mistakes

  • Skipping income verification to fill a vacancy fast.

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