Editor in Chief

Head Of In-Lease Experience

Co-Founder & Head of Product

Belong Co-Founders

Head of People

Tax calculators feature on many real estate websites, but how well can they account for the nuances that go into determining how much landlords owe the IRS?

Tax Calculators – How Useful Are They, Really?

Tax calculators are a popular feature of many real estate websites and services. But how well can they account for the nuances that go into determining how much you owe Uncle Sam?

Anyone who owns a rental house – or is thinking of buying one – needs to keep the tax consequences in mind. Each aspect of the ownership picture – from depreciation, to expense write-offs, to of course overall income – will have implications for your personal taxes. 

If you don’t own the home personally, but in an entity that files a separate tax return, such as a C-Corp,  that’s a different story completely. There are pros and cons to that decision, and here’s a good summary of them.

At  Belong – a new kind of modern property management company – we have built a tech-forward platform that helps homeowners keep all their financial ducks in a row, and stay organized. You won’t have to be chasing your paperwork -  it’s all in one place – including any improvements you’ve made through Belong. That’s because Belong employs its own contractors and manages the entire process.

We know from our homeowners that it can be a real effort to stay on top of their personal finances, and their taxes.  They ask us all the time about whether a tax calculator can be useful as they keep track of their tax liabilities during the year.   That’s not surprising, because, in addition to owning real estate, many of them are entrepreneurs who have multiple sources of income and dynamic, unpredictable tax situations.

Which Tax Calculator is Best for Landlords?

When you Google “tax calculator” – and a lot of people are doing it, because there are 675M hits – there is no shortage of links that pop up.  To make your life easier, your intrepid friends at Belong spent some time analyzing them to see if there is one that rises to the top of the calculation heap.

To start with, there are a lot of familiar names that show up high on the first page. Not surprisingly, there are free tax calculators and “estimators”  being offered by H&R Block, TurboTax, Nerdwallet, Jackson Hewitt, and many others. 

In the cases of the big names, for the most part, these calculators are a marketing technique, they are offered “free” but their goal is to sell their software programs.  So you have to enter some personal information before you have access to the full platform. Of the ones listed above, Nerd Wallet gives you the most access without being sucked into their sales funnel.  AARP also has a calculator that doesn’t require too much disclosure. 

Keep in mind these are very basic tools, so use them only as guidelines.  It’s best that you have access to an accountant, especially given what looks like dramatic, upcoming changes in the tax code.  That’s especially true if you are self-employed.   We found two calculators that are designed for those who are not traditional W-2 employees, one is from TaxAct and the other from KeeperTax.  

Given the complexities of owning a rental house, while a tax calculator can be useful for providing some basic guidance, expert accountants can pay for themselves.  If you don’t have one, and your personal network has been exhausted, there are platforms like 1800Accountant that might be useful. Unless you feel really confident, being your own accountant can be as risky as being your own electrician.

Lastly, to wrap this up, who knows more about the taxes than the IRS? They have an online tax withholding estimator that is pretty good and is free of charge. 

While you're busy doing maths, take a look below at our back-of-the-napkin maths calculator to do some quick sums on putting your rental on Belong.  Not only will we make your finances easier, all maintenance expenses, management and placement fees are tax deductible.

Stress is toxic - and managing your own rental property is a stress machine. Learn more about the hidden stresses of being a landlord and property manager.

The Right Property Manager Can Help You Achieve Profound Well-Being

The hidden stress of managing your own property, revealed!

If you own a rental property, and you’re considering managing it yourself, we suggest you hit the pause button and listen up.

Taking that on yourself – rather than hiring a skilled property manager – is a serious undertaking.  So you owe it to yourself to consider not just the obvious stresses, but the hidden emotional, physical, and financial costs of assuming that responsibility. 

Of course, there’s also a cost associated with property management, and we’ll get to it later on.  But first, to establish a context for whatever fees you will need to pay, let’s walk through the burdens of acting as your own property manager.

Stress is toxic. And managing your own property is a stress machine.

The fact is that stress is so pervasive, that many of us are dealing with the symptoms without even understanding what’s behind them.  That’s a risk, because stress’s effects on the body are profound, leading to conditions like digestive problems, insomnia, and weakened immune systems. Even weight gain.

What does this biology lesson have to do with managing your property?  Everything!  Because the entire property management process, from listing, to getting the place in rental shape, to finding and vetting a tenant, is ridiculously stressful. 

And lets us not forget about dealing with vacancies and collecting the rent!

This post on Reddit sums it up perfectly:

“I am a new landlord and I think I'm getting an ulcer from the stress. Can y'all give me some tips on how not to be so stressed about tenants all the time?”

The Right Property Manager is like a Meditation App for Homeowners

Most people intuitively understand that acting as your own property manager is a highly stressful endeavor. However, there are so many bad property managers out there – an overwhelming amount, in fact – that many people are driven to do it themselves.

In fact, the proliferation of property managers that fail to deliver inspired the founders to create Belong.

Belong performs all the services that traditional property managers attend to, and they do it with a thoughtful, homeowner-first approach and impeccable attention to detail.  They even go so far as to guarantee the rent, and they have a team of their own talented contractors – Belong Pros – who take the stress out of repair and renovation.  Which is one of the most frustrating and infuriating parts of being a homeowner.

Yes, working with Belong costs a bit – but so does working with any property management company.  The 8% of monthly rent that Belong charges is comparable to what you’d pay to traditional property management companies, which don’t offer the same kind of end-to-end services. 

The right way to look at that cost is that it’s a small price to pay for your well-being.  We do so much else to stay healthy today – we eat, we exercise, we try to get enough sleep – why undercut that by dealing with the stress of a leaky faucet or a late check?

You said there’s a financial cost of NOT hiring the right property manager.

We did. Here are two costs to start.  First – you may not be charging enough rent.  Driven by the fear of having a vacant house sit on the market if the rent’s too high, many homeowners charge too little.  Belong solves that problem with a price optimization technology that takes your home and your neighborhood into account, and identifies a price that will get new residents moving in ASAP.

The second hidden cost of being your own property manager is what economists call “opportunity costs.”   Simply put, what else could you be doing with your time when you’re not dealing with piles and piles of forms and paperwork?

Well, maybe you could be starting a business!  The data shows that millions are becoming entrepreneurs; more than 4.4. million “pandemic businesses” were started last year.

Having someone manage your property gives you the time and peace of mind to get that going.  Which means one source of income – your home – can be joined by another.

Boosting your immune system and your net worth – who would have thought the right property manager can make that possible?

We're all about convenience for homeowners in CA. For the LA area, here are 6 out of the box home delivery services bringing you everything from cake to cats.

6 Out of The Box Home Delivery Services in LA

Since we're in the business of making managing and finding a rental more convenient, we've collected a list of our favorite conveniences: direct-to-door home delivery. For the LA area, here are 6 out of the box home delivery services bringing you everything from cake to cats. 

Convenience. It’s an accurate but nonetheless uninspiring word to describe the magic of having something wonderful delivered to your front door. The wonder of tapping on your phone a few times and having the exact thing you wanted dropped to your doorstep never seems to get old. Here are six out-of-the-box home delivery services to try in the LA area. 

Now that the kids are back in school, the challenge of making school lunches is back, big time. If you find yourself pressed for time in the morning, consider using lunchbreak4kids. They offer fresh, seasonal food that finds the sweet spot between being healthy and kid-friendly.  With pizza roll-ups and Asian noodle bowls, their tagline – “Peanut butter & jelly is gonna need to hire a publicist” – sounds right to us. Prices start at $8.99 per lunch.

2. "Let them eat cake" (without leaving the sofa)

When Marie Antoinette was told that the people had no bread, she famously replied “Let them eat cake.” Even if she wasn’t being snide, she certainly couldn’t have deserts sent to the peasants who would soon make life (and death) very unpleasant for her.  

You, on the other hand, can send cake to anyone you choose. Or reward yourself. UberEats has put together a handy list of frosting-on-demand resources, which include our personal favorite, the Milk Bar in Melrose. Christina Tosi, the renowned chef behind the Milk Bar, also just published a charming children’s book called Every Cake Has a Story, which should zoom to the top of your holiday gift list.

If you need a dog or cat picked up and delivered – or a horse, rabbit, or butterfly, for that matter – let us point your attention to the quirky thoroughness of Southern California Pet Transport. They are experts in navigating the logistical complexities of getting a pet from Home A to Home B, including whatever veterinary and regulatory requirements are necessary.

You would expect an excess of healthy meal kit delivery services in LA, and there is a leafy overflow to be sure. Within that verdant abundance we were drawn to Territory, who pulls together local chefs, restaurants, and nutritionists in support of a “foodlosophy” – and yes, that is a bit cutesy for our taste – that “allows folks to tap into a “‘reducetarian’ approach” that “reduces overall consumption of the inflammation heavy hitters.”

Given that the holidays are approaching, we thought we’d start to wrap up with some absolutely joyful choices for gift basket delivery.  We turned to Petal Republic as a source for the best LA has to offer; they describe themselves as a “platform to showcase and celebrate exceptional florists, plant shops, garden centers, urban nurseries, and floral experiences…”

Petal Republic has curated a terrific list for just about every occasion and recipient, including this selection from Volcanica Coffee for the caffeine fiends in your life.

Lastly — while being home is a great way to reduce stress, sometimes anxiety follows you through the front door. For those times, we direct your tense scalenes to the capable hands of one of the massage therapists from the capable crowd at Soothe.com

At Belong, we are known for connecting people who own much-loved houses, with people who are ready to extend their love in that same domestic direction. Like the companies on our list, we are using technology to create richer and more meaningful experiences that elevate everything related to home as the center of our lives. Learn more at Belonghome.com

The source of much controversy, the new California law represents a tremendous opportunity to bring neighborhoods together.

The Upside of SB-9 Can Be Stronger and more Vibrant Communities

Starting January 1 of 2022, California Bill SB-9, which many of you have read about, allows homeowners in the state to divide their property into 2 separate lots; though one of the lots the property owners must occupy by law, the other they can put on the rental market. 

It’s been controversial on both sides – advocates believe that the law will help mitigate the housing shortage that has long plagued the state, and that it will help to diversify neighborhoods by providing access to lower income families. 

Meanwhile, on the con side there’s a wide range of criticism: some support the concept, but think the safeguards put in place to prevent developers from taking advantage of the law are too weak; some don’t think the law will have a palpable effect on the housing shortage, pointing to a July study by Terner Center for Housing Innovation at UC Berkeley.

The law was so controversial that Governor Gavin Newsom reportedly let it sit on his desk unsigned until the recall election was over; now that his job status is secure though, and the law has been signed, the debate is behind us. 

SB-9 As an Opportunity To Create Authentic, Belonging Experiences.

At Belong, we have a mission to connect people who have much-loved houses with those ready to move in and extend the love. 

But our mission extends beyond that. It extends to the community. That’s at the heart of what we mean when we say we exist “To create authentic belonging experiences.”

We see S9 as an opportunity to build stronger and more vibrant neighborhoods and communities. Places that inspire that deep sense of belonging.

Yes, it will create more density.  But the upside of density is that it brings more people into neighborhoods. Which means more people to stop by the local coffee shop, pick up something at a bookstore that is the soul of the community, and say hello to the local florist and bring home a succulent for the windowsill.

Yes, we recognize that S9 will also reduce green space, as every square foot of land that a house sits on is a square foot that cannot accommodate a tree.  The way we see it, though, that means every homeowner who takes advantage of S9 has a parallel responsibility to make their outdoor spaces as beautiful as welcoming as possible.

We expect to see some creative and imaginative landscaping techniques being brought to new construction. 

That innovation is being seen in the landscaping of ADUs – Accessory Dwelling Units – which is another change in California zoning that was enacted to cope with the state’s overwhelming housing shortage.  This blog post on landscaping ADUs by Kol Peterson, an expert and champion of ADU development, offers some insight into how greenery and new construction can be married. He wrote:

“ADUs present a subtle but entirely new type of social relationship opportunity for the tenants and owners. The relationship between the occupants of the house and ADU is typically not as intimate as the relationship of housemates, but typically is closer than the relationship of a typical neighbor.

“Parts of the yard, driveway, gardens, patio, and storage may be shared, and other parts may serve as dedicated spaces for one unit or the other. Landscaping has the potential to give visual cues to the occupant and guests  about the use of the property.”

Though Kol’s perceptive comments were specifically pointed towards the internal dynamics of a property – again, to create a sense of “belong” in an entirely new spatial environment – the same applies to the outward-facing aesthetics of the buildings to be built under SB-0.

Neighborhoods have always been in a dynamic state of change. They react to changing needs and norms. SB-9 is just the latest example of that. So the question becomes: How do we make the most of it?

At Belong – where we connect homeowners and residents to live richer and more fulfilling lives – we believe that will make our neighborhoods stronger and more diverse.

We are confident that homeowners who take advantage of S9 will join us in this mission. Together, we can make more housing units on the same property create more wins for all.

Adam Hanft

Adam is a futurist - co-author of "Dictionary of the Future" - brand strategist, public-company board member, former comedy-writer (but he hasn't stopped being vaguely amusing), and an investor in Belong.

Tamara Epelbaum

Tyler Infelise

Annalise Mantz

Ale, Owen & Tyler Founders

Flora Fiorillo

Tamara Epelbaum

Tyler Infelise

Annalise Mantz

Ale, Owen & Tyler Founders

Flora Fiorillo