Should you require tenants to have renters insurance? Learn more about renters insurance and the kind of protection it provides for landlords and rental homes.

What Renters Insurance Should You Require Your Tenants To Have?

Renters insurance is a type of insurance policy that provides financial protection for individuals who are renting a home. It covers personal belongings and provides liability coverage for residents. Renters' insurance is usually relatively inexpensive and can provide peace of mind for tenants by protecting their personal belongings and financial interests.

Renters insurance also provides protection for homeowners by reducing the risk of legal action taken against them if their residents are held liable for damage that occurs on the property. This is why many homeowners choose to require tenants to obtain and hold renters insurance for the duration of their lease term.

It is important to note that renters insurance does not cover damage to the rental property itself. Landlords will typically need to have their own insurance policy to protect against damage to the rental property and other risks associated with being a landlord.

Should you require your residents to obtain renters’ insurance?

Most apartment owners and landlords do require their tenants to have renters’ insurance. As a homeowner of a single or small number of rental homes, should you? There are two reasons to consider requiring your residents to obtain renters insurance:

Protection for you: If your tenant is held liable for an injury or damage that occurs on the rental property, their renters insurance may cover their liability, protecting you from financial responsibility.

Protection for your residents: Renters insurance can provide financial protection for your tenants in case of damage to their personal belongings or liability for injuries sustained on the rental property. Renters insurance can also provide your tenants with temporary housing if their rental unit becomes uninhabitable due to a covered loss.

What kinds of renters insurance products are there?

There are generally two types of renters insurance. Actual cash value coverage covers the cost to replace your personal belongings, minus depreciation. Replacement cost coverage covers the cost to replace your personal belongings without taking depreciation into account. This means that you would be reimbursed for the full cost to replace your personal belongings with new items of similar quality.

Some policies may offer a combination of actual cash value and replacement cost coverage, with different limits and deductibles applying to different types of losses.

What type of renters insurance should you require your residents to have?

Most landlords, especially corporate landlords operating apartment buildings or multi-family units, require tenants to obtain renters insurance with at least $100,000 in liability coverage.  

You should require your tenants to have coverage that is sufficient to protect their personal belongings and cover any potential liabilities. This may include coverage for personal property, loss of use, and personal liability.

Depending on where your home is located, you should be aware of any exclusions in the policy, such as coverage for flood damage or earthquakes, as these types of events may not be covered under a standard renters insurance policy. If you are in a flood risk area, for example, you may want to require policies that cover flood damage. 

Does Belong require residents to obtain renters’ insurance?

Belong requires all residents to obtain renters insurance with $100,000 in liability coverage in order to rent a property cared for by Belong. Residents have the option to opt-in to renters insurance set up by a Belong partner so they can roll the cost of the insurance right into their rental payment, saving them time and headache on choosing a provider. For more information, please contact your local Belong team.

Most landlords can deduct fees paid to a property manager or Belong as a rental expense on yearly tax returns. Learn more about what does and doesn't qualify.

Are Property Management Fees Tax Deductible?

Rental homeowners are considered business owners, and that has unique implications at tax time. When Uncle Sam comes knocking, it can be confusing to try and understand what is considered taxable income. Are property management fees tax deductible? What about Belong’s fees? 

In the United States, you can generally deduct the fees you pay to a property manager as a rental expense on your tax return. However, you can only claim the deduction if you are actively involved in the rental property and receiving rental income. If you are not actively involved in the rental and are not receiving rental income, the fees may not be deductible.

If your home is rented for less than 14 days in a year or you have used the home personally for 10% of the total days in which the home was rented, your home will be considered a personal residence and you won’t be able to deduct any rental losses. Some tax deductions still apply under the 10% rule, but to a limited extent. This generally applies to homes that are used as short-term rentals for only part of the year. 

What does it mean to be ‘actively involved’ in the rental property, for tax purposes?

To be considered "actively involved" in a rental property, you must regularly participate in the management and operation of the rental property. According to the Internal Revenue Service (IRS), you may be considered actively involved in a rental property if you:

Regularly communicate with the property manager about the rental

Make decisions about repairs, maintenance, and other property management issues

Review and approve financial statements and reports related to the rental property

Attend meetings with the property manager or tenants

Perform other tasks related to the management of the rental property

It is important to note that the IRS has specific guidelines on what qualifies as active participation in a rental property. You should consult with a tax professional or refer to the IRS guidelines for more information about the requirements for active participation in a rental property.

Read More: 2023 Tax Rates on Rental Income: What You Need to Know

Do Belong fees qualify as tax deductions?

In short, yes. Belong’s fees are considered rental expenses, and Belong homeowners remain actively involved in the management of their home while working with Belong. Homeowners will actively communicate with their local Belong team about repairs, maintenance, and decisions about the property, and homeowners earn income from the properties as well. 

Always consult with a tax professional about your specific situation, but in general, Belong fees should be tax deductible in the US. 

Which property management tax deductions can I claim, if I qualify?

Because your long-term rental qualifies as a business, there are dozens of expenses you can reasonably deduct from your taxable income. It is important to note that these deductions may have certain limitations or requirements, and you should always consult with a tax professional before filing. Some expenses you should be able to deduct include:

The fees you pay to a property manager (or Belong) for managing your rental property.

The cost of repairs and maintenance that are necessary to keep your rental property in good condition. This includes things like painting, fixing a leaky roof, or replacing a broken window.

The cost of insurance on your rental property, such as liability insurance or property insurance.

Read More: Tax Strategies for Rental Investors: 5 Ways To Make A Home Less Taxing

What documentation do I need in order to deduct property management expenses from my taxes? 

If you are audited by the Internal Revenue Service (IRS), you may be required to provide documentation to support your deductions. 

This is why it is always a good idea to keep good records of all expenses related to your rental property, including property management fees, as you may need to provide documentation to support your deductions when you file your tax return. In addition to receipts or invoices for the fees, you should also keep records of any other expenses related to the property, such as repairs, maintenance, utilities, and insurance.

How does Belong help homeowners during tax season?

Belong is a worry-free alternative to traditional property management, and that includes taking care of owners during tax season. Belong homeowners never have to scramble to locate documents or tally up expenses at the end of the year; instead they can download everything they need from one convenient online portal. 

Belong provides homeowners with end-of-the-year earnings statements that detail all of the payable and receivable transactions in an earnings statement format. Homeowners can also access their 1099 documents via their online account. They also receive personalized concierge assistance with locating documents needed for tax purposes or answering questions about expenses or fees. 

Find out if your rental home qualifies at belonghome.com/homeowners. 

States with the most rental vacancies in 2022

Rental vacancies in the U.S. are at their lowest rate since 1984. Using quarterly Census data, Belong assembled a breakdown of vacancies by state.  

Finding a new place to rent is harder now than it's been since 1984.

The U.S. rental vacancy rate stood at 5.8% through the third quarter of 2022—the latest data available, according to the Census Bureau. Housing hasn't been this scarce in nearly 40 years.

Meanwhile, the cost of renting has increased dramatically: The median cost for available units reached $2,000 for the first time in May 2022, according to a report from Redfin. One of the biggest reasons for the increase is the corresponding growth in the cost to buy a home.

Belong calculated the average rental vacancy rates by state, with third-quarter vacancy data used to break ties.

Higher-income families are now choosing to rent at a higher rate than in previous years. Between 2009 and 2019, the number of families making $75,000 or more that chose to rent rose 48%, according to a report from the Joint Center for Housing Studies of Harvard University. The increased cost of homeownership is just one reason for the change, the report says, as some households are choosing to rent because of the increase in "amenity-rich rental units in desirable locations."

In areas such as the Sun Belt, the rise in remote work brought more residents seeking lower housing costs and better weather, especially in metro areas and their suburbs.

A Rent analysis from the second quarter of 2022 found more renters were interested in moving to the Midwest or the South than they were in the West or Northeast. Part of that is likely the cost of rent, the analysis found, with many of the most expensive rental cities in the Northeast and West.

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Midwestern, Southern states have the highest rental vacancies

The Sun Belt and the Midwest have more rentals available than the Northeast and West, according to data from the Census Bureau. Several major metropolitan areas in the Sun Belt led the pack in multifamily construction starts in the first quarter of 2022, according to Redfin, including Austin, Texas; Jacksonville, Florida; Orlando, Florida; and San Antonio.

Average 2022 rental vacancy rate through September: 7.8%

Average 2022 rental vacancy rate through September: 7.9%

Average 2022 rental vacancy rate through September: 8.2%

Explore a comprehensive property management blog that covers tips, trends, and stories related to long-term renting, home renovation, and more.

Average 2022 rental vacancy rate through September: 8.3%

Average 2022 rental vacancy rate through September: 8.7%

Average 2022 rental vacancy rate through September: 8.8%

Average 2022 rental vacancy rate through September: 9.6%

Our home pro services team can have the experience, licenses, and certifications to tackle your home project including construction, plumbing, HVAC, and electrical. See if you qualify to become a Belong homeowner today! 

Using quarterly Census data, Belong assembled a breakdown of vacancies by state. This data may help inform your upcoming rental home investment decisions as a US homeowner.

Most landlords want positive cash flow, but to do an accurate rental property cash flow analysis, you’ll need a spreadsheet and these important calculations.

How To Do An Accurate Rental Property Cash Flow Analysis

Calculating cash flow on a rental property isn’t quite as simple as the amount you earn in rental income. Nor is it as straightforward as rental income, less your mortgage repayments. To do an accurate rental property cash flow analysis, you’re going to need a spreadsheet and the following information.

What is positive cash flow on a rental property?

When your rental home makes more money than it costs to run, you have positive cash flow. This can also be referred to as passive income — money that comes from an investment rather than you actively working for it, as you would in regular employment. When you have low mortgage repayments (from low interest rates or high equity in the home) on a home that is in good repair, it’s easier to maintain positive cash flow.

Keeping your cash flow as high as possible is the goal for most homeowners with 1-2 rental properties, contributing towards financial stability and ensuring there are enough funds to cover any unexpected expenses that may arise. 

What is negative cash flow on a rental property?

Negative cash flow on a rental property means that the home doesn’t produce enough cash to cover the cost of the asset. While the name makes it sound, well, negative — this can sometimes be a strategic move. 

Known as ‘negative gearing’, some real estate investors will take on a property knowing that the rental income won’t cover costs of expenses in the short term. This is because the asset will appreciate and may produce more money in the long term. Negative gearing can also reduce tax liability, with losses claimed against other sources of income.

This is a riskier strategy than positive cash flow, as it requires investing more of your own money for the larger payout in the end. There are also capital gains considerations on the profits if you sell the property without reinvesting the money into another similar home. 

How do I calculate my rental home’s cash flow?

To determine if your home is achieving positive or negative cash flow, you need to do an accurate rental property cash flow analysis. This involves calculating the net operating income of the property, less any debt service. To work out these formulas accurately, here is the breakdown of income and costs to account for. 

1. Determine the total gross income of your rental property

First, comes the easy part. Take a look at all sources of income relevant to your rental home and determine your gross cash flow on the property. 

This should be pretty straightforward — your rental income. If you self-manage the home and charge for any extras such as furniture rental, storage or services, include this too. 

For example, if you charge $2,000 per month for rent, your gross income for the year would be $24,000. If it’s $3,000, it would be $36,000 per annum. 

There’s also the matter of vacancies. When your home is on a lease agreement, you will have rental income, but when it’s empty, this will reduce your gross income. So if your home is vacant for a month, your rental income will reduce. 

To recap, the final formula is: rental income + additional income – vacancy rate = gross rental income. 

2. Determine your home’s gross operating expenses

Homes don’t run themselves. You may have management services in place (such as Belong or a property management company) and there’s also the cost of maintenance, insurance and taxes on the home. If you are self-managing the property, you will need to factor the DIY costs such as marketing, photography, legal fees for lease agreements, traveling for inspections and tours and so forth. 

Most homeowners and investors also put money aside regularly for capital expenditures, that is, improvements made to the home that increase the value or avoid major repair expenses such as adding a new deck or replacing the HVAC. These expenses do not qualify for immediate tax deductions, but you can offset the depreciation against capital gains. 

Property management fees (usually around 6 - 10%) or DIY marketing and management costs

Lease renewal or reletting fees (if charged)

Regular services such as lawn care or snow removal

Savings for capital expenditures or improvements

Landlord’s insurance and/or mortgage insurance

Local services and utilities such as garbage collection or water and sewage

A final tally of these expenses will be your gross operating expenses. 

3. Calculate how much you earn after expenses

How much you earn on a rental after expenses is known as ‘net operating income’ or NOI. This involves taking your figure from step one (gross rental income) and subtracting your figures from step two (gross operating expenses). 

If for example, your gross rental income is $36,000 and your gross operating expenses are $4,000, your net operating income = $32,000 per annum. 

To recap, the formula is gross rental income - gross operating expenses = net operating income (NOI). 

If you own your property outright, such as inheriting a property, this figure will determine your cash flow. If you have any debts to service, such as a mortgage or home equity loan, you will have one final step to complete your rental property cash flow analysis, outlined below.  

4. Account for any debts or financial liabilities

The final step in your rental property cash flow analysis is the amount of debt you need to repay against the home. This could be your mortgage repayments for the year or home equity loan repayments. 

For this example, let’s continue the same figures used above (NOI of $32,000) and assume the mortgage repayments are $1,500 a month on a fixed interest rate. There are 12 months in the year, so your annual repayments would be $18,000.

$32,000 (NOI) - $18,000 (debt service) = $14,000. This would make $14,000 your annual positive cash flow, or $1,166.66 in monthly cash flow. 

If you had a variable mortgage repayment and interest rates rise, you would need to adjust the cost to determine your monthly cash flow. For example, if your mortgage repayment went up to $1,696 per month, your annual debt would rise to $20,352. This would make your annual positive cash flow $11,648 or $970.66 per month. 

How to increase your cash flow on a rental property

Now that you have done the math, how do you increase your cash flow? This is a simple matter of either increasing your rental income and/or decreasing your operating expenses and debt. This will alter the final figure or cash flow on your rental home. 

Increasing the rent is one way, but if you price your home too high or have too many increases, you could find yourself with a higher vacancy rate and diminishing profits. 

An alternative is to reduce your operating expenses and vacancies, by switching to a better alternative to self-managing or property management. 

Belong homeowners enjoy access to our data-driven pricing analysis, and have a team of professionals to help them price their home for maximum profit, with minimal vacancies. Belong homes find the perfect residents within 19 days, on average. That’s 66% faster than average! 

Belong supports your rental cash flow by providing reliable, guaranteed rent every month (regardless of when your resident pays). Homeowners are also approved for innovative finance options such as Split It, which allows you to spread costs (such as unexpected maintenance or even a full kitchen renovation!) over the term of your residents’ lease agreement, keeping your monthly cash flow positive. 

Discover 3 ways to reduce rental vacancies and how Belong finds residents 66% faster than average.

3 Ways To Reduce Rental Property Vacancies

Long-term rental home vacancies can be a costly problem for homeowners and property investors. A vacant rental means lost income, and often homeowners are unsure why they are unable to find great residents for their home. In this article, we will explore three practical strategies for minimizing long-term rental home vacancies and maximizing your rental income.

Happy residents are more likely to renew their leases, which can help reduce vacancies. If you’re self-managing a rental property, their experience will be entirely up to how you respond to them and how you deal with any issues that arise. To keep your residents happy and ensure they feel at home, you’ll need to have solid communication skills and be contactable at all times to respond to resident’s needs and concerns. 

If you have the help of a property manager, make sure they have measures in place for residents to get in touch with them easily and that you approve decisions quickly to keep the home habitable and well-maintained. 

Great residents offer security with predictable income and cost you less in the long run by reporting maintenance issues on time and not creating headaches or damage to your property. If you have great residents in place, you may want to consider offering a multi-year lease or an incentive for renewing their lease to encourage them to stay. 

For example, homeowners that work with Belong can take advantage of a unique incentive for renewals, because Belong allows residents to earn credits towards purchasing their own home for every on-time rental payment they make. It’s one of the many reasons why Belong residents are happy to stay put. Coupled with fantastic service and 24/7 concierge support, 71% of Belong residents renew their one-year leases. 

Rental homes are just as affected by supply and demand as any other part of our economy. Pricing your rental too high compared to similar, nearby rental options will cause residents to simply look elsewhere. But pricing strategically can be difficult, especially for newer rental home owners. 

It is important to research your rental market by looking at comparable rental properties in your area. Consider the size of the property, location, and amenities (in-home laundry, backyard, etc). If you’re having a hard time conducting market research, consider working directly with a partner like Belong. 

Your home may still be vacant simply because renters don’t know it is available! This is the simplest yet most time-consuming part of the rental process. If you’d rather not go through the steps to market your home, consider working with a partner like Belong that does all of this (and lots more) on your behalf.

First, you’ll need to have excellent photos and even video of the home. Homes with professional photos are said to sell 50x faster than homes without, and this holds true for rentals as well. This is why Belong believes that professional photos and video tours of homes are essential to the rental process and are included at no extra cost to all Belong homeowners. 

Once you’ve taken excellent photos of your home, you’ll want to advertise effectively. Most people look to popular online platforms such as Zillow, Craigslist, and Rentals.com, so they are good places to start (and remember to check your inbox regularly for applicants and inquiries!). Social media, local publications, and even simple “For Rent” signs are also great ideas. 

If you list your home with Belong, you’ll automatically be featured on all the top sites with our direct integrations with places like Zillow and Zumper. This reduces vacancies because it means you'll get 30-50% more views for your home as well as a direct feed of applicants from these sites into the Belong system. This enables Belong to contact potential residents quickly and find the best applicant much faster than going it alone or using a traditional property management company.

It’s another way that Belong reduces vacancy times and costs for homeowners, attracting an average of 29 qualified applications for every home listed. 

With first class marketing, 24/7 support, and never-before-seen incentives for renters, Belong homeowners don’t stress about vacancies. 

Belong also keeps residents happier for longer, by ditching the outdated property management model, turning the rental experience into a world-class hospitality service for both you and your residents.  Our services currently extend to homes in the Bay Area, the LA area, Orange County, Seattle, Miami, Orlando, and Tampa (with many more to come!). See if your home is located in our network, here. 

Rental vacancies are expensive for landlords. Discover 3 ways to reduce rental vacancies and how Belong finds tenants 66% faster than the industry average.

How to spot the difference between a buyers and sellers market to determine if you should sell or rent out your property in your local real estate market.

What is The Difference Between a Buyer's Market and a Seller's Market?

As interest rates continue to rise and talks of a recession continue, homeowners may find themselves unsure of how to manage their investments, especially their real estate assets. Terms like “buyer’s market” and “seller’s market” are common in discussions around the real estate market, but what do these terms really mean? In this post, we’ll define these terms and discuss how the market you’re in will impact your investment decisions.

In a buyer's market, there is an excess of homes for sale, indicated by lower prices and more frequent seller concessions. On the flip side, in a seller’s market there is a scarcity of homes for sale, leading to higher prices and more competitive behavior from buyers. 

In a market with surplus inventory, buyers have more negotiating power and sellers may be more willing to accept lower offers. In a market with low inventory, sellers have more bargaining power because there are fewer properties available and more buyers interested in purchasing them.

How to tell if you are in a “buyer’s market” or “seller’s market” 

Though many media outlets will discuss the state of the market as a national phenomenon, the truth is that the state of local real estate markets varies widely across the country. Topeka may be a buyer’s market while Albany is a seller’s market. And it’s not static, each local market will shift and change with supply and demand. 

There are a few factors to consider when trying to understand your local real estate market:

1. The number of homes for sale: Like so many areas of the economy, the real estate market is greatly impacted by supply and demand. If there are lots of homes for sale in your area, you’re likely in a buyer’s market, and vice versa. 

2. Average number of days on market: If properties in the area are taking longer to sell, it may be a buyer's market. In a seller's market, properties typically sell more quickly.

3. Frequent price changes: If the prices of homes in the area are decreasing or staying the same, it could be a buyer's market. The inverse is true for a seller’s market. 

If you are in a buyer’s market, is it better to rent out your home or sell it?

If you believe your home is located in a buyer’s market, should you sell your home or turn it into a long-term rental? It depends. Here are a few things to consider when deciding whether to rent out or sell your property in a buyer's market:

1. Your financial situation: If you have the financial stability to hold onto your property and collect rental income, you can continue earning equity and take advantage of tax strategies as your home value grows, while also collecting passive income. If you need liquid cash in the short term, you may be better off selling, even in a buyer’s market where you may not make as much from the sale.

2. Your future plans: If you’re moving out but you think you may want to return to your home or area in the future, renting it out could be a good option. With the right residents in place, your home can be cared for and earn you rental income, while also appreciating in value, before you return. 

3. The condition of the property: If your property is in good condition and is likely to attract renters, it could be a good choice to rent it out. However, if the property needs significant repairs or upgrades, it may be more cost-effective to sell it. (Your local Belong team can help you understand how marketable your home is and the cost of any needed repairs.)

Read More: Renting vs. Selling 101: The Homeowner’s Guide

If you are in a seller’s market, is it better to rent out your home or sell it?

In a seller's market, there is generally high demand for properties, which can lead to higher prices and more profit for you. However, there are a few things to consider when deciding whether to rent out or sell your property in a seller's market:

1. Your financial situation: If you need to sell your property in order to free up cash, it may be a good idea to sell it, especially in a seller's market when prices are high. On the other hand, if you are able to hold onto your property and collect rental income, this may be an even better option for long-term passive income. 

2. The condition of the property: If your property is in good condition, it is more likely to fetch multiple offers, perhaps even above the asking price. However, properties in good condition also rent fast, and for top dollar. 

3. The local rental market: It's important to consider the demand for rentals in your area when deciding whether to rent out or sell your property. If there is strong demand for rentals, it may be a good time to consider renting out your property.

Whether you own a home in a buyer’s market or a seller’s market, whether you’re determined to sell or interested in renting out your property, Belong can help. Our local experts are ready and waiting to answer your questions and help you understand the pros and cons of turning your home into a long-term rental that residents will love. 

Belong is a modern alternative to traditional property management, offering homeowners an unparalleled set of features and perks, including: 

Guaranteed rent, regardless of when it's paid by residents. That’s passive income you can rely on! 


Maintenance and renovation services, provided by vetted, in-house tradespeople


Full transparency over fees with no sneaky extras like setup costs and lease renewal charges


Real 24/7 concierge-level support for both homeowners and residents, not just emergency logging 


Protection for homeowners against evictions with up to $15,000 of coverage against legal fees


True market data and real-time interest from potential residents that maximize the value of homes on the Belong network


Asset management consultations helping homeowners make the best long-term decisions for their property and investment


The option to apply any management fees paid to date as a discount towards brokerage fees if it’s time to sell


Ready to learn more about how Belong is changing the world of home management and renting forever? Find out if your home is eligible for Belong here, or become a Belong resident by searching for available homes. 

Where are the most recession-proof housing markets? We take a look at the data for 2023 and how to protect your real estate investment on the rental market.

Where are the Most Recession-Proof Housing Markets in 2023?

Recessions are unpredictable. In fact, experts can’t seem to agree on whether the US is or isn’t headed for recession in 2023. This uncertainty itself can bring instability to the real estate market, with many people waiting to see what happens before they put their money in a home. 

In the past, recessions have often triggered dramatic drops in housing prices, which can be good news for homebuyers, but bad news for homeowners, mortgage holders and anyone without good job security. 

Thankfully the housing market looks very different now than it did in 2008, when the Great Recession hit. There’s been a shift in supply/demand and more homeowners have had an opportunity to build equity in their homes off the back of historically low interest rates. This has made the market less fragile and many areas have even held quite strong despite rising interest rates. 

But where are the strongest markets in the US? Which states will be most resistant to huge drops or deemed to be “recession-proof” housing markets? While no one can be certain, many real estate analysts have weighed in on this topic recently. In this article, we’ll give you a brief overview of some of this data. 

Which housing markets are at risk during a recession?

Recession or not, we already know that the housing market shifted in 2022 from years prior. Interest rates spiked from historic lows and after a pandemic fueled buying frenzy in regional markets, prices began to slow and settle. Supply is starting to open up as homes stay on the market longer. 

Real estate researchers at Redfin noted that some of the pandemic’s hottest markets are the ones most likely to experience a downturn. After outpacing other markets in price growth and migration, they are now at risk of losing the value gained since 2020. 

Redfin predicts the top 10 housing markets most at risk of a downturn in 2023 are:

Most of these markets are now facing either unaffordability with interest rates rising on top of high prices, or people returning back to other regions after moving during the pandemic. 

Which housing markets are tipped to be the most resilient in a recession? 

The same Redfin data lists markets that are still affordable in Rust Belt metropolitan areas as the most resilient housing markets. 

Redfin predicts the top 10 most resilient housing markets of 2023 will be:

This list is based on a risk assessment of the markets with the lowest chance of a housing downfall if the US enters a recession. Factors influencing these scores include lower price volatility, low debt-to-income ratio and affordable housing. When houses remain affordable, they are more likely to attract buyers and investors. 

Boston is a notable outlier on this list, however price growth didn’t hit this area quite as hard when many migrated out during the pandemic, pushing up prices in other regions. 

Single family homes are resilient real estate assets

Housing markets play a big role in the price and value of homes, but the type of home plays a part too. There’s no such thing as a “recession-proof investment”, but in terms of real estate, single family homes can hold tremendous value. 

Large single-family homes, particularly in spread-out neighborhoods, typically remain in high demand and are more likely to hold their value in a recession (or any kind of economic downturn). 

Single-family rentals can make for resilient investments too. In a recent article, Roofstock reported that single-family rentals (SFRs) have provided nearly identical returns to the stock market — but with far less volatility. This makes owning a single family home an attractive investment option to build or diversify your portfolio. 

If you own a single-family home in a market affected by a downturn, you won’t get much in the way of appreciation on your home until things bounce back. However, if there’s scarcity for single-family homes and you can offer good space in a nice neighborhood, it’s likely that demand will remain steady for your home on the rental market and price decreases won’t hit as hard as the apartment market.  

In fact, when homeownership declines, people are likely to stay renting for longer, opting for a single-family home with more space to stay long-term and even grow their family, rather than choosing a cramped apartment. 

Protecting your real estate investment during a recession

There are two key ways to protect yourself during a recession: 

1. Have a stable source of income (positive cash flow)

When interest rates rise and the risk of residents falling behind in rent increases, this might bring little peace of mind to owners of rental properties.

Belong is turning this around and making it easier for homeowners to protect their single-family home investments during a recession. For starters, we’ll ensure your rental income is stable and predictable, by optimizing the rental price for your market and guaranteeing rent every month. Regardless of when your residents pay, you’ll always know exactly how much income will be coming in and when. 

When it comes to debt, you’ll always know where you stand too. Unlike traditional property managers, Belong never charges hidden fees for the essentials in taking care of your home. If unexpected costs do arise, such as maintenance or repairs, there’s no need to max out your credit cards. All Belong homeowners are pre-approved for our innovative Split It financing option. This allows you to access our highly qualified in-house tradespeople for anything from repairs to renovations and spread the cost over the term of your lease agreement, keeping your cash flow positive and debt down. 

To learn more about how Belong is helping homeowners achieve financial stability — and to find out if your single-family home or condo is eligible — check out the homeowners page.

The Los Angeles City Council is ending renter eviction protections on Jan 31 2023. Learn what this means for landlords starting Feb 1 2023 for rent and pricing

What Landlords Need to Know About the End of the LA Eviction Moratorium

First, a note on vocabulary: at Belong, we hate the words “landlord” and "tenant." Instead, we call everyone in our residential network Homeowners and Residents. Because language matters, and we want your home to be loved, not just rented. That said, we use the terms “homeowner,” and “landlord”  interchangeably in this post to help more people find this useful information. To learn more about why we’re working to change how people think about renting, see this article in TechCrunch.

The Los Angeles City Council voted 12-0 to end long-standing renter eviction protections due to COVID-19 hardship on Jan. 31, 2023. Beginning February 1, 2023, tenants must pay their full current monthly rent in order to avoid eviction for non-payment of rent. Landlords will be able to resume increasing rent on rent-controlled apartments, which account for three-quarters of apartments in Los Angeles, beginning in February 2024.

Los Angeles County enacted the COVID-19 Tenant Protections Resolution in March 2020 to protect residents from eviction during the pandemic. The resolution prohibited rent increases and evictions due to non-payment related to COVID-19 hardships. In November 2022, the County Board of Supervisors clarified which protections would end in 2023, and which would continue indefinitely. 

Eviction moratoriums have been implemented and modified multiple times over the past two years, and it can be difficult for landlords to keep up with the latest changes and requirements.

Belong homeowners benefit from expert advice and local guidance, as well as direct protections from non-payment, and services to aid in eviction proceedings when absolutely necessary. 

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