Ideally we all would like to know the amount of risk involvedbefore making a decision.

That's why we evaluate the side-effects before trying out a newmedication, check online reviews before eating at a restaurant orcheck a vehicle's motor history before purchasing a used car. It'ssafe to say that knowing certain information pertaining to riskhelps us to understand what we're really getting ourselves into,especially as it pertains to investing in rental property.

Knowing the true risk of a rental property reduces losses even whenunexpected events occur. Historically, commercial underwriters haveapproached the problem of assessing risk with a mixture of tacticssuch as: Examining prior losses, reviewing ownership information,and weighing historical property characteristics in addition toother external risk factors that may play a role, such as localcrime rates.

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