Complaints of unfair discrimination are a common risk faced by real estate agents. Real estate professionals can be sued over allegations that they weren't shown a home because of their race, religion, or gender. Of course, like any industry, real estate professionals are at risk of unexpected accidents, such as falls and injuries to visitors. This is particularly relevant for properties that need an update or that are still in the middle of the construction process when they start showing up.
Knowing that people aren't always interested or unable to buy homes or investment properties can be stressful for real estate agents whose career is based solely on showing clients properties for sale. In addition, even if real estate agents are already working on a deal, most agents don't get paid until the deal is closed. Agents don't have guaranteed paychecks at the end of the month, and that comes with a lot of stress. A deal can go wrong and be canceled at any time, leaving the real estate agent hanging in the balance most of the time.
In an article published a few years ago, Business Insider reported that real estate agents rank 10th on the list of the 19 jobs in which you are most likely to commit suicide. This is a testament to how stressful work can be. Hiring tenants is probably the biggest risk in all real estate, especially for landlords and managers. Agents are licensed real estate sellers and, although licensed by the state, they cannot make any sales without a broker.
In fact, a recent report by Deloitte showed that people with privileged information provide the information needed for 37% of data attacks in the real estate sector. With that in mind, let's take a closer look at some of the major risks that commercial real estate professionals face and talk about what they can do to protect their businesses and properties from these common risks by developing a solid real estate risk management plan. It is important for agents to familiarize themselves with the Code of Ethics and the Arbitration Manual of the National Association of Realtors so as not to face these results. This is why real estate professionals not only need a solid cyber liability insurance policy, but also a commercial crime policy or loyalty bonus to protect themselves from cases of employee fraud and dishonesty.
There are always things that real estate agents and brokers can do to be more diligent and prevent accidents when displaying properties. The very nature of the real estate business leaves brokers and agents subject to any number of possible lawsuits and claims, simply as a result of their daily business activities. Problems such as steam ingress from underground storage tanks and even mold problems can have a serious impact on your property. The risk is that your car will be stolen or stolen, in addition to your customers physically attacking you.
Real estate can be a very rewarding profession for those who are willing to accept the fact that the risks can sometimes be as great as the rewards involved. In addition, the real estate industry is by no means immune to employment-related lawsuits for harassment, discrimination, wrongful dismissal and lack of promotion. Real estate investors must always look to the future and evaluate and identify possible trends to stay ahead. Environmental challenges are also present in the real estate sector and are increasingly costly both to remedy and to insure.
Storm damage and property losses that are the direct result of climate variation are a very real problem for real estate managers. To mitigate these risks, it is important for agents to stay informed about local weather patterns and climate change trends so they can better prepare their clients for potential losses. Real estate professionals should also consider investing in cyber liability insurance policies to protect their businesses from data breaches or other cyber-related incidents. Additionally, it is important for agents to have an understanding of local laws regarding tenant rights so they can ensure their clients' rights are protected.
Overall, there are many risks associated with being a real estate professional. However, with proper planning and preparation, these risks can be managed effectively. By understanding these risks and taking steps to mitigate them, agents can ensure their businesses remain successful.