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With reports of AirBnb hosts spending a fortune to remedy nightmares, is it time to switch your property from short-term vacation home to a long-term rental?

Mounting Problems with AirBnb: Should You Switch to a Long-Term Rental?

AirBnb guests have taken to Twitter and TikTok in recent months sharing horror stories and vowing to never vacation in a short-term rental again. Mounting fees, inconsistent host experiences, and even dangerous situations are among their reasons, all understandable. But what about the AirBnb hosts? 

It turns out that hosts around the world are souring on short-term rentals as well. A 2021 Bloomberg report revealed that AirBnb spends millions of dollars annually to make “nightmares” go away for guests and hosts alike. Meanwhile, local governments are fighting back against short-term rentals, which reduce the amount of available housing for full-time residents and raise rent and home prices for everyone. 

4 ways owning a short-term rental creates real problems

Short term rental problem #1: Taking on more work than you bargained for

Got a short term vacation rental? Congratulations, you now work in customer service! AirBnb hosts don’t get to sit back and collect passive income, they also take on the majority of communication with guests, are responsible for managing their own listing, setting and enforcing property rules, cleaning in between guests, and generally keeping guests happy. All too often, when something goes wrong, hosts are the ones left responsible for remedying the situation and dealing with angry (sometimes even dangerous) guests.

The payday that can come from a popular vacation rental becomes a lot less attractive when you factor in the number of hours you’ll spend working as a frontline customer service agent for your own property.

Short term rental problem #2: There’s a maze of convoluted tax laws and local regulations

NerdWallet’s Sam Kemmis reported earlier this year on the growing number of complaints from AirBnb hosts. Sam pointed out that in addition to the hospitality burdens placed on hosts, they also have legal obligations that can be difficult to understand and comply with. 

“Many local governments place the burden of tax collection on hosts, not Airbnb. A 2022 analysis by the National League of Cities, an advocacy organization composed of city, town and village leaders, estimated that 82% of cities require hosts to remit taxes themselves, while only 5% require the platform to do so on hosts’ behalf.”

Short term rental problem #3: The income is unpredictable

Even if everything goes well with your vacation rental, in most places vacation season is limited. You’re likely to experience booms and busts in your rental income, in contrast to long-term rentals, which are predictable and, in some cases even guaranteed income. 

Short term rental problem #4: Homeowners have limited protections

Even with all the liability insurance in the world, AirBnb hosts are opening themselves up to risk by allowing strangers to stay on their property. AirBnb’s insurance only covers limited property damages, and can’t give you back your time or your sanity if you’re faced with a squatter or criminal activity. Are you willing to take on that risk?

The good news is, switching your property from a short-term rental to a long-term rental is easy, especially if you work with a partner like Belong. Belong is a full-service residential network that takes care of your home and your residents for you, so those AirBnb headaches? Forget them.

Belong homeowners enjoy predictable, passive income with transparent management fees that often result in higher cash flow than even your best vacation rental months. 

The average Belong home is rented in under 17 days. That means you could say ‘bye-bye’ to AirBnb and ‘hello’ to guaranteed rent and passive income in just over two weeks.

Not sure if your home is an ideal long-term rental? Schedule a consultation with our team to discuss pricing and placement of your property so you can understand how much you’d earn with Belong. 

Mounting Problems with AirBnb: Should You Switch To Renting?

Learn how to prepare your home for an inspection from potential tenants, from access to cleaning and clearing furniture.

Prepare For Your Inspection

To set you on the right track from day one, Belong inspectors will make sure your rental home is safe, comfortable and ready for occupancy. This means they will need access to all areas of the home. If the home is currently occupied, ensure it is ready for inspection and any residents are aware of what is taking place. Any pets should also be secured. If the home is vacant, it's a good idea to remove any furniture or personal items, or at least ensure there there is nothing preventing access. 

In order to accurately test utilities throughout the home, please ensure that water, gas and electricity are up and running during inspection. 

Homes under construction or DYI projects make it difficult for our inspectors to understand the current state of the home, we want to make sure that your home is ready to be loved and taken care of by your upcoming residents.

Please ensure that a full set of keys is provided to us either prior to or at the time of inspection. Your homeowner growth associate can ensure that the keys are kept secure at all times. 

Putting your home on the rental market? Learn how to prepare your home for an inspection from potential tenants, from access to cleaning and clearing furniture.

That is why Belong can make your life so much easier!

Find The Perfect Rental or Rent Your Home Hassle-Free

Renting a home is an exciting and life-enhancing experience. Where would you like to live? What kind of home would suit your family best? And how do you find it all hassle-free? Belong is here to help with everything. Whether you own a home and want to put it out for rent without lifting a finger or you want to find the perfect rental for you without the hassle of driving around looking for available properties. We're here from start to finish, so let us take the stress out of renting or finding your home!

Access all the tools and support you need to rent your home with Belong

We manage your rental, so you don't have to worry about it.

If you ever rented out your home, you might have encountered many different problems and situations with renters. That is why Belong can make your life so much easier! 

Our software is designed to make renting easy, and we provide a full suite of tools and support to manage your rental. Our tech-enable platform allows us to offer the most seamless experience and take care of everything from managing tenant applications and background checks, collecting rent payments, and maintaining leases to reporting on any maintenance issues that arise at the property.

Sounds good? Well, it gets better. We're here for you every step of the way. 

These are some of the benefits you get when listing your rental property with Belong:

As you can see, Belong is not your regular property management, we offer happiness management so you can spend your time (and extra money) doing the things you really love. 

Find the perfect rental and enjoy a stress-free moving experience.

Renting is the perfect solution for many people. It gives you flexibility, a good return on your investment, and the ability to move around more quickly if needed. But finding the right rental can be difficult and time-consuming, especially in popular areas. That's where Belong comes in! With our easy-to-use website and simple but reliable software, you can browse thousands of properties all over the area instantly, anywhere, and any time. With Belong, finding the perfect rental for your specific needs has never been easier! 

Goodbye property management, hello happiness!

Rental services like ours can make your life easier. When you rent with Belong, you're dealing with one company that is an expert instead of many different ones. Our team does everything in-house: we manage the property, maintain it and take care of all incoming repairs. You don't have to worry about collecting rent or finding new tenants if someone moves out — we do that for you! You also won't need to deal with unexpected expenses like utilities or remodeling because they are included in our monthly fee.

All this saves time and allows you to focus on what matters most — your family, friends, and hobbies. At Belong, we believe property management is outdated, which is why we offer services that spark joy. 

Are you ready to list your rental? Get started today! All you have to do is enter your home address, click a button, and if you qualify, we will take care of the rest!  

On the other hand, if you are finding for the perfect place to rent, just go to our website, select the city you want to belong to, and just sit back and relax while we find the best property for you! 

If you have any questions about Belong, reach out to us! We are here to help.

If you ever rented out your home, you might have encountered many different problems and situations with renters. That is why Belong can make your life so much easier!

Understand how to purchase an REO foreclosure property and what makes them different from other real estate investment opportunities. 

What is an REO Foreclosure?

An REO Foreclosure is a real estate-owned property that failed to sell during foreclosure. The mortgage lender, bank, or mortgage investor owns the property, and these types of properties are sometimes also called “bank-owned” homes. REO foreclosures offer buyers another avenue to acquire real estate. 

Still, as with all investments, it’s critical to understand precisely how to purchase an REO property and know what makes them different from other real estate opportunities. 

For a house to become an REO property, the home must go through several steps. In the pre-foreclosure stage, a homeowner will default on their mortgage. If the homeowner and mortgage lender cannot agree on an option to allow the homeowner to remain in the home (sell via a short sale or return the deed to the lender/investor), the property enters the foreclosure process.

A foreclosure sale is scheduled, and the home is listed for a specific price. If the property does not sell, the lender or the investor will take over property management.

If the property does not sell at foreclosure, the home becomes an REO (real estate owned) property. A house may also become REO property if the previous owners moved out or passed away at the end of a reverse mortgage. If their heirs won’t or don’t want to pay off the mortgage, refinance or sell the property, they can return the property to the lender or investor, and it will become an REO property. 

REO properties are typically categorized as distressed and always sold “as-is.” Remember that these properties are foreclosed when the owner cannot pay their mortgage. As a result, it’s unlikely that REO properties will be well-kept. If the previous owner did not have money for the mortgage, it’s doubtful they kept up with much maintenance. There is also little incentive to keep a home in good condition if you know it is being foreclosed. You will find that REO properties are frequently discounted to sell quickly, which can provide real estate investors with a unique opportunity. 

Pros and cons of purchasing an REO property 

REO properties are a less common way to purchase a real estate investment. As such, they come with distinct pros and cons. Understanding the potential benefits and pitfalls will allow you to decide if buying an REO property is right for you. 

Price is the most significant benefit of purchasing an REO property. The initial listing price of REO properties is often below the current market value, and investors will find that banks are often willing to negotiate the sale of these properties. Purchasing an REO property also offers a buyer protection from outstanding property taxes. There are no outstanding taxes on REO properties, which can be preferable to buying a tax foreclosure home because the new owner would inherit the tax bill. 

REO properties are sold “as-is,” meaning they can have expensive repairs that will likely exceed the standard 1% – 3% of the home value. If you carefully inspect the property and estimate repairs, REO properties can still offer an upside. 

Those interested in purchasing a multi-unit REO property should familiarize themselves with the Protecting Tenants at Foreclosure Act which requires giving the tenants 90 days’ notice. You may be required to honor the terms of the existing lease. 

REO properties can also come with additional costs, including attorney fees and the cost of securing the property. Depending on the market, there can also be a lot of competition for these types of properties. 

You can start your search for REO property listings by using publicly available lists from the Department of Housing and Urban Development (HUD), the Department of Veterans Affairs, the Department of Agriculture, and the IRS. Fannie Mae and Freddie Mac provide an aggregate list of REO properties. 

If you are interested in purchasing an REO property, you’ll want to find a real estate agent with this type of property experience. They have a better understanding of how to structure a suitable offer. The right real estate agent will also have good insight into what repairs or changes will be needed for each property. Finding a lender to provide the appropriate financing for an REO property is also critical. Finally, you may need to identify an attorney with REO property experience. 

Once you have identified the best professionals and a suitable REO property, you must submit an offer. Through this process, you will have the opportunity to inspect the property and get an appraisal, which is highly encouraged in purchasing an REO property. The seller is unlikely to pay for an inspection and will not fix anything identified in the inspection report, but having a professional inspection will ensure you have all the information needed to make an informed decision and offer. 

General vs. special warranty deeds for REO properties 

When purchasing an REO property, you will receive a general or special warranty deed. Understanding the difference between the two is essential to protecting your new asset. 

With a general deed, no one can claim issues with your title from before you owned the property. A general deed also indicates that there are no liens and that the property is owned free and clear by the seller.

With the sale of an REO property, you are more likely to receive a special warranty deed. This deed only guarantees that no additional title issues have been created since the bank or investor took over ownership. While the bank or investor has the right to sell the property, there’s no promise against other pre-existing title issues or liens. If you have a special warranty deed, an owner’s title policy can help protect against any pre-existing property claims.

Once you’ve purchased your real estate investment property, consider Belong 

Belong is a new alternative to old-school, expensive property management. We use data and real-time insights to price your property and find your new residents. We help you get your new real estate investment ready for the residents of your dreams. With Belong, you’ll have access to 24/7 customer service and a team of full-time maintenance professionals, who can even assist with renovations and strategic financial decisions on your new investment. 

Once you’ve purchased your new real estate investment, we invite you to explore working with Belong for the smoothest process, guaranteed rent, and concierge-level support. Learn more about Belong for Homeowners.

Belong

Adam Hanft

Melanie Kershaw

Afton Brazzoni

Ale Resnik

Ashleigh Graf

Adam Hanft

Melanie Kershaw

Afton Brazzoni

Ale Resnik

Ashleigh Graf