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Operating any business is risky, but being a landlord appears to be more risky than operating most businesses. Landlords are sued more than any other group of business owners in America. Many risks of landlords also exist for most other businesses, but there are many risks in the landlording business, particularly for residential rentals, that don’t exist for other business. Residential landlord-tenant laws, fair housing laws, ADA, lead paint laws, and other laws regulate landlording at federal, state, county, and city government levels. Landlords and tenants interact regarding a very important category of life, where the landlord’s ownership and the tenant’s occupancy of the property are sometimes at odds and therefore have the potential for causing conflict. Landlords must choose their way through a minefield of risks related to these issues.

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Managing risks related to rental property can be complex and time consuming. However, risk management should be at the top of every landlord’s list of priorities and be considered in everything he/she does. This is not only because there is potential for a significant judgment payable to the tenant or a fine payable to the government, but because the risk can extend to loss of the subject property and, if adequate asset protection procedures are not in place, to the loss of all of a landlord’s assets.

Every landlord should consider developing, regularly updating, and always utilizing a risk reduction plan to reduce liabilities associated with their property. By giving thought to what could happen and proactively implementing policies and procedures for protecting the health, safety, and security of tenants and their guests and, for commercial property, the customers or clients of the tenants. By doing so, landlords can (1) avoid many management problems and (2) reduce the risks of lawsuits and losses.

All risk management measures, including asset protection and disaster planning, are like insurance in that you have to put things in place prior to occurrence of the catastrophe, not after the fact. In fact, attempting to protect assets after the fact by transferring property is considered "fraudulent conveyance" and a conviction on that charge carries serious consequences. Furthermore, such attempts are usually ineffective.