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I recommend thinking about this probabilistically:

X% of tenants are reasonable and handle the repairs they are contractually required to handle smoothly.

(1-X)% of tenants are a massive headache, and call the landlord for every lightbulb that needs changing, threaten to sue you all the time, smash your property to pieces etc etc.

Compute the expected value, and compare with other forms of investment. In my experience, renting out a single property is not worth the expected reward, vis-a-vis other forms of investment. This changes if you can reap economies of scale from renting out multiple properties. (Cut-off point depends on ambient legal system, tax, your own background (e.g. if you are a lawyer, you can handle legal disputes yourself) etc.)



Hello fellow statistician (whether by training or habit). For everyone else, note that this approach is not limited to landlording.

Excellent exposition!


>(1-X)% of tenants

You mean (100-X)% ?




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