Content Writer, Stacker

Co-Founder & Head of Product

Belong Co-Founders

Marketing Manager

The outlook isn't as gloomy as you may think.

Are We At Risk of Recession? What Happens To Landlords During a Recession?

As uncertainty continues about whether the US economy is in or headed for a recession, it’s understandable that homeowners in the rental market — mortgage holders in particular — are wondering what this means for their household. This article will take a look at the effects of a potential recession and risks to mortgages. 

The effects of a recession and risk to rental property owners

In the past, recessions such as the financial crisis of 2008 triggered a dramatic drop in house prices and people who couldn’t pay off their mortgages. So with a recession threat looming in 2022-2023, some are nervous about what this could mean for housing again.

Our real estate experts have noted that the market looks different today than it did back in 2008. 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. 

Recessions are unpredictable and don’t always mean a drop in housing prices or even rise in mortgage default. What we have seen however, for years now, is that would-be homeowners are taking longer to get into the market and now their borrowing power has been dampened further by the rising cost of mortgages. It’s also considered risky to get a mortgage during a recession, which could see many potential home buyers stay in the rental market longer to see what happens. 

These factors have all contributed to the heat in the rental market, where competition and prices for single-family homes has continued to intensify. For rental property owners, this means that providing you can comfortably make your mortgage repayments and stay on top of any debt, owning a home on the rental market can still be profitable and deliver passive income. 

If you’re having an issue with the repayments for your mortgage or your rental property isn’t bringing in enough income to assist your finances, it’s time to assess your financial situation. Lowering costs or increasing the value of your home could be the smartest decision long-term, rather than selling if there is a downturn in home values. This gives you the option to build equity in the home and receive rental income while waiting for the market to grow again.

Belong can assist homeowners by providing a world-class home management service without the extra charges you might be paying a property management company. We also offer innovative financial solutions such as Split It, which allow you to stay cash flow positive and spread out the costs of things such as repairs, maintenance and even investment-boosting renovations. 

Learn more about how Belong is making renting lovable here. 

Is a recession good for home buyers and real estate investors?

If you’re considering acquiring a home during a recession to take advantage of lowering house prices, it’s worth taking a close look at your finances and employment situation to be prepared before taking on the risk of a new mortgage. There are also current issues of high inflation and rising interest rates that could be a bigger risk to mortgages than the recession itself.  

At a recent webinar on the housing market, our resident Asset Manager, Jon Martin from JDM Asset Management, was asked to weigh in on the topic of acquiring a home with interest rates on the rise. 

“At higher interest rates, fewer prospective homebuyers will qualify for mortgages (or at a lesser dollar amount) and will instead choose to keep renting. Rising rental demand will further push rents up – we’re actually already seeing that, with median nationwide rent passing $2,000 for the first time ever in May 2022,” explains Jon. 

If you are looking at acquiring a property for rent, Jon notes that now is a good time to keep a watchful eye for opportunities and price-drops in your desired neighborhoods, as less competition provides some welcome relief to house hunters. 

“While you’ll have to factor in a higher cost of capital when analyzing your next opportunity, the recent upward pressures on rents and the likelihood of locating an attractive single family rental are creating a more attractive market for acquisitions,” says Jon. 

“Another point to consider when looking to acquire a rental, for those sitting on cash, is a higher down payment than say the standard 20% to reduce your exposure to higher interest rates,” he adds. “This will only help when running the numbers to see if your rental income will cover your operating expenses and mortgage payments,” says Jon. 

Watch now: Catch the full webinar conversation here.

Should you pay off your mortgage before a recession?

During a recession and with the high rate of inflation, cash on hand becomes increasingly important. So while it’s a good idea to clear off high-interest debt such as credit cards or personal finance loans, you don’t want to pay off the mortgage entirely if it means draining all of your cash reserves.

Recessions can be brief, so a knee-jerk response may not be warranted or the best financial option for your situation, unless you have a minimal amount to pay down and are already in retirement. 

Recessions can increase the likelihood of redundancies and unemployment, so having cash reserves is likely to be more important than owning your home outright. This is because a fully-paid home won’t help your weekly budget if you get short on cash for essentials such as food and utilities. You will also need to consider long-term expenses such as college funds or retirement plans if they apply to your financial situation. 

Got more questions for Belong? Contact us 24/7

Whether you prefer email, online chat or a good ol’ fashioned phone call, we’re here to answer any questions you may have. Check out our homeowners page to get in touch or learn more about having your home loved by Belong.  

Is the US headed for recession and what is the risk to mortgages for landlords who own homes on the rental market? The outlook isn't as gloomy as you may think.

Highlights of what we've achieved together in 2022

2022 In Review: How You Have Helped Us Belong

Belong is building a network; connecting people who own much-loved homes with people who want a place to belong. Working together, we can put people first and change what it means to rent a home — creating lasting, positive impact on innumerable lives for decades to come. 

Redefining an entire industry is not a journey that can be made alone. So before we gear up for a busy 2023, we wanted to take a moment to share our milestones and achievements with you — our homeowners, residents, investors, and team members — to celebrate the year that was. Here are just a few of Belong’s defining moments of 2022.  

Our vision was supported with Series C funding 

First of all a huge thank you to everyone who believes in our vision to create authentic belonging experiences for homeowners and their residents. A special thanks to our financial supporters, who helped us secure $80M in Series C funding in May 202. All our major investors (Andreessen Horowitz (a16z), Battery Ventures, GGV Capital and Fifth Wall) doubled, tripled, or even quadrupled down on financial support for our dream — further fuelling our future growth and optimism for what we are creating. 

When homeowners join Belong, we make a real impact on the rental market. From finding lovable, long-term homes for those who need them to getting and keeping investment homes in the hands of real people, not corporations. This is why Belong’s proudest milestone by far was welcoming more than 2,000 homeowners (and counting) to our world-first residential network. 

Thank you to everyone who trusts us with their homes and for choosing to belong with us. We remain committed to providing an exceptional and personalized service to everyone in our network, which is reflected in the lovely things you’ve been saying about us! As we’ve grown, so have our glowing reviews on Google, rating us 4.8/5 stars. 

We put our services at your fingertips, 24/7

Belong takes the hard work out of managing or renting a home — and that got even easier with the launch of the Belong app for Apple and Android devices.

Rather than have a separate platform for homeowners and their residents, everyone uses the same, easy-to-use app to work with Belong. The app gives everyone 24/7 access to their concierge and a host of features at their fingertips — from paying rent and acquiring insurance to reviewing and approving repairs by our vetted network of over 10,000 professional contractors. 

Our shiny new app isn’t the only innovative way we’re flipping property management on its head. Learn more about the 6 new products we launched through the year. 

We said howdy to hundreds of new neighborhoods

On the heels of successful launches across California and Washington, we set our sights on the sunny weather and never-ending energy of Florida. In 2022, we opened our end-to-end home management services and beloved rental experience to the homeowners and residents in neighborhoods in Miami, Tampa and Orlando. 

Stay tuned, we have our sights set on adding 12 new states to our network soon, including Arizona, Colorado, Oregon and Texas. 

A big part of what Belong wants to achieve is a level playing field, where individuals have the opportunity to achieve financial freedom from investing in the housing market after years of unfair competition from major corporations. 

Thank you to everyone who has joined us so far. If you missed any of these sessions, you can catch up on the recordings: 

The Effects of Rising Interest Rates on the Housing Market

What Are The Best Cities To Buy Investment Home in This Economy & Why?

Know someone who needs their home loved by Belong? We have $1,000 that belongs in your pocket! To support those that are telling their friends and family about us, we launched a new referral program that offers $1,000 for eligible referrals. Learn more here.

Belong is here to make waves and our new approach to renting has been getting us a lot of attention in 2022. 

When Business Insider asked top VC investors to name the most promising consumer startups of 2022, Belong was honored to be #3 on this list for our work in disrupting the outdated property management model.

We also made the CB Insights’ Fintech 250: The most promising fintech companies of 2022, with recognition as one of top 15 businesses in the real estate and mortgage category. 

The best part is, we’re just getting started

2023 is going to be even bigger and brighter with plenty of more people-led, industry-disrupting services coming to Belong homeowners and residents. Thank you to everyone who is joining us on this incredible journey to changing the world of home management and renting forever. We're gearing up to launch even more cities and more services so watch this space!

For anyone not yet on our network, you can find out if your home is eligible for Belong here, or become a Belong resident by searching for available homes.

Belong is building a residential network that connects people who own homes with people who want a place to belong. Here's what we achieved together in 2022.

Hey San Diego! We’re building a newsletter specifically for America’s Finest City and our beloved members of our Belong community. In our monthly newsletter, you can find out what’s new with us and new in the city! Enjoy the first edition of our newsletter.

San Diego Monthly Newsletter: Issue 1

Hey San Diego! We’re building a newsletter specifically for America’s Finest City and the beloved members of our Belong community. In our monthly newsletter, you can find out what’s new with Belong and new in the city! Enjoy the first edition of our newsletter.

We believe in a world where homes are owned by regular people. Our mission is to provide authentic belonging experiences, empowering residents to become homeowners and homeowners to be financially free.

We outrank the best property management companies in California

San Diego has kept a consistent 100 NPS score for our homeowners in Q3 and continuing into Q4. Our longtime homeowner Yamit said, “Working with Belong team has been a pleasure and a fruitful experience for me, Belong as well as the residents”. We are rated 4.8/5 stars on Google and Zillow, making us the highest-rated property management company in California! Check out how we’ve done this and how we’re changing home management on our blog. 

On top of a one-of-a-kind app and web interface which makes renting and owning easier than ever before, Belong employs the management world’s first full-service Concierge who manages all communication and correspondence to owners and residents alike. 

With the Belong App, manage rent, request a pro, or message your concierge whenever and wherever you need to.

When you make a request on the Belong app, not only are you given a competitive quote sourced from the highest quality, licensed, insured maintenance staff and vendor network courted by Belong, a real person will take care of the job for you. 

Big or small, simple or complex, behind every feature and phone call a professional rental manager is making your life easier. 

Check out more here or refer for $1,000 in your pocket. 

Karma Wallet – Every time a resident on our Belong platform pays their rent on time, a portion of that money is stashed away in the wallet, for residents to apply to future home purchases. 


Guaranteed Rent – We find residents who are fully vetted and 100% guaranteed. With Guaranteed Rent, you choose between getting paid on the first of every month or receiving the entire year of rent upfront. Up to you!


End-to-End Service – We’re here for you 24/7 to offer support and assistance with your home. We do everything, from major upgrades and renovations to maintenance with our in-house team of pros during a lease. Let us help you with financing with our Split It program where our Belong homeowners enjoy special, no-down-payment-required financing options on any home maintenance costs you encounter before or during your Belong membership. 


Joe Caramanica is Belong’s General Contractor in San Diego. Joe brings with him decades of experience in the construction industry working on a variety of projects including new builds, kitchen renovations, bathroom renovations, ADU conversions, and more. This year, Joe and the team took advantage of changes to the California and San Diego municipal codes allowing for expanded development of housing when he and the team developed a multi-unit ADU concept here in the heart of Old Town. Once the construction is complete, Belong will manage the units for our homeowner, fulfilling the promise of a complete, white-glove, end-to-end process capable of servicing everyone from professional developers, to first-time renovators. 

Have a project in mind? Reach out to Belong here to schedule a virtual consultation. 

Come See Us at the San Diego Home Improvement Expo: 

The San Diego Home Improvement Expo runs from January 27th-29th between the hours of 10 am - 4 pm. 

Whether you’re a homeowner, resident, or just curious about new products, stop by to chat with our team who will be hosting a booth at the San Diego Home Improvement Expo! 

The San Diego Home Improvement Expo offers deals on kitchen and bath remodeling, home decor, and more all under one roof. Speak to experts from a large variety of home improvement and maintenance organizations. Get your free pass here to see what Belong has to offer!  

Fernando Dingler is a Software Engineer who recently moved from San Diego to Seattle with his wife. Belong jumped in and found amazing residents to occupy their San Marcos home. Fernando came to us after a bad experience with one of our competitors and decided to join the Belong family! Schedule an in-person visit with our home expert here.

Jack and Lauren moved into their home in San Diego a year ago and just renewed their lease with Belong for another year!

Here’s what Lauren and Jack have to say about Belong: “Such a breath of fresh air for a renter in a crazy market. They responded quickly to every communication. I virtually toured the same day I applied. They make a point of having a call with EVERY APPLICANT. That was great because, while we’re great tenants and financially secure, we’re not cookie-cutter applicants”.

Whether you're hungry for unique and creative food or just looking for a happy hour special, Mothership in South Park is the place for you. Recently built following Kindred's success (featured on Diners, Drive-Ins, and Dives), Mothership is an interplanetary experience that is incredibly exclusive.

The Belong team recommends the Heliotropic drink and the seasonal salad. Located at 2310 30th St., Mothership is open from 4:30 - midnight on weekdays and 2:30 - midnight on weekends.

Head to Candy Cane Lane in Poway or Christmas Card Lane in Rancho Penasquitos to sip hot cocoa sold by local students while walking the beautifully lit neighborhoods.

On December 11th or 18th at 5:30 pm, bundle up for the 52nd Annual Parade of Lights in San Diego Bay. Watch from Shelter Island or Coronado for this spectacular sight.

Take a trip to Hotel Del Coronado for ice skating by the sea until January 1st.

Stay connected with San Diego’s monthly updates with this popular San Diego newsletter.

Belong San Diego Fall Blog

Renting out a home you love can be as daunting as selling. That's why Belong has developed a 'middle ground' for downsizers in a sell or hold dilemma.

Time to Downsize? Consider the Pros and Cons of Selling or Renting

When it's time to downsize your home, the decision to sell can be a painful one. But renting it out to strangers can be equally daunting. That's why Belong has developed a 'middle ground' for downsizers who are facing the 'sell or hold' dilemma.

There are plenty of reasons for hanging on to a beloved home, even if it no longer suits your lifestyle. Perhaps you want to see your own kids (or grandkids) live there someday. Maybe you want to travel for a year or two while you decide. Perhaps you want to move to a smaller place, but don’t want to sell the house because property values in the neighborhood are going up, and you want to maximize your potential profit.

There are many options you have at this point in your life. But if you want to keep the house, the biggest challenge you will face is finding the right person to live in it.

Many homeowners choose to sell their current home when it’s time for them to downsize. Often, they’ve lived in their current home for years or decades, and built a considerable amount of equity in the property. But selling your home may not be the best option if you want to prioritize ongoing cash flow, bequeath the property to a relative, or simply hold the home for sentimental reasons. 

Cash out on the equity you’ve built in your home. Selling your home, especially one you’ve lived in for more than 2 years, can result in a large amount of cash immediately becoming available to you. 

Reduce property maintenance time and costs. When you sell your home in order to purchase or rent a smaller property, you immediately reduce the amount of yard work, maintenance, and general property management required. 

Market conditions can make returns uncertain. Realtor.com predicts that 2023 will be a “nobody’s market,” where inventory increases but prices remain high. You may wish to downsize during a period when market conditions are not favorable to sellers, and if that’s the case, holding on to your property may be a better option. 

Capital gains taxes may cut into profits. It’s easy to forget Uncle Sam’s portion of your equity gains may be larger than you thought. Capital gains taxes can be as high as 37% in some cases, so be sure to consider this when choosing whether to sell or hold your home. 

Since 2008, with the dawn of AirBnB and the growing popularity of renting vacation homes for shorter time periods, many homeowners have chosen to move out of their home and turn it into a vacation rental rather than sell it. This is appealing for homeowners that want to continue letting their equity grow, while also covering their mortgage payments and even earning additional income. Vacation rentals aren’t passive income, however, and complaints with short-term rental companies have been in the news throughout 2022. 

Pros of turning your home into a vacation rental

Earn regular extra income. Nightly rates for vacation properties often exceed the average nightly price of long-term rentals, and several bookings a month can often comfortably cover your mortgage and earn you extra income. 

Deduct many expenses. Because your vacation rental is considered a business, you can deduct related expenses such as cleaning and marketing costs. 

Cons of turning your home into a vacation rental

Property damage is more likely to occur. A common complaint among vacation property owners is the vacationers themselves. It only takes one unauthorized party or rowdy group of guests to inflict a lot of damage to your home, and the recourse may not be enough to cover the damages.

Market fluctuations impact the ROI significantly. Vacation rentals are highly impacted by the overall economy and travel trends. And right now, the trend is downward. While the highs of vacation rental ownership are certainly high, the lows can be especially painful if you’re not prepared. 

Changing regulations may interrupt your business. Many cities are banning or significantly limiting short-term rentals, citing concerns with housing availability. These regulations may not be in your city currently, but they are spreading across the country and represent a risk to consider. 

Marketing, cleaning, and customer service required. The income from short-term rentals is far from passive. In most cases, you’ll be directly responsible for communicating with guests, arranging cleaning and maintenance services, and generally keeping the business running. If you’re downsizing in order to live a simpler life, a vacation rental is not a great option. 

Pros and cons of renting your home long-term

The third (and we’d argue best) option for homeowners that want to downsize their living space is to list their home as a long-term rental. Long term rental properties earn owners steady, predictable, and sometimes even guaranteed income when working with a partner like Belong. Unlike vacation rentals, long-term rentals offer stability to both homeowner and resident, and finding a qualified partner to manage the property day-to-day is much easier. 

Passive (sometimes guaranteed) income. Long-term rentals, when managed by a qualified partner like Belong, can result in truly passive income. Special programs may even guarantee your rental income, even if tenants pay late or the property has a period of vacancy. 

Long-term leases mean less fluctuation (and less stress). Longer-term residents mean shorter-term vacancies and a more consistent experience for homeowners and residents alike. 

Better care is taken of the property. Residents that live in (and love!) your property full-time are more likely to care for your home as if it is their own. And high-quality property management partners like Belong will ensure maintenance problems are addressed immediately, keeping your property well-taken care of without you needing to lift a finger. 

Equity isn’t liquid. If you need to access your equity in cash, perhaps in order to purchase your next home outright, selling may be a better option for you. 

Less access to the property during the lease term. Residents have strongly-protected rights to privacy, so if you want to visit the property frequently or even stay there on occasion, a short-term rental situation may be better for you. 

How Belong is making life easier for downsizers

Downsizers love Belong because we put great residents in their home, keeping it well loved and well maintained, helping the home appreciate while you’re not in it. And if you do decide its time to sell, the management fees that Belong collects could get credited to offset some of the commission earned from the sale of the house. We call that a win-win! 

Belong is not a property management company, but a residential network offering unique services to both homeowners and their residents. From not charging fees for the essentials to guaranteeing rent, Belong will partner with you to achieve financial freedom. And you'll never need to lift a finger. 

Learn more and find out if your home is eligible at belong.com/homeowners.

Belong

Andrea Vale

Tyler Infelise

Melanie Kershaw

Ale, Owen & Tyler Founders

Eric Vandekerkhove

Andrea Vale

Tyler Infelise

Melanie Kershaw

Ale, Owen & Tyler Founders

Eric Vandekerkhove