Belong Co-Founders

Staff Writer, Stacker

Journalist

How do you price a Miami rental property in 2022? By ditching the property management model for a modern alternative designed for the real world and true value.

The Realistic Way To Price a Miami Rental Home When The Market is Mad

Forget basketball and even the weather, when people mention the Miami heat lately it’s more likely to be real estate talk. But when the market is hot, how much rent is too much? How do you price a Miami rental property in 2022? By ditching the property management model for a real-world alternative.

While reports vary, they all tell a similar story: Miami rents hit an all-time high in 2022. The NY Post blames an exodus from NYC, LA and SF for Miami apartment rents increasing by as much as 57%. In February, CNBC ranked Miami as the fifth most expensive U.S. rental market for a one-bedroom apartment.

But with these sharp increases are warnings that the Florida market is overpriced.

While 2020 was the year of the pandemic, 2022 is shaping up to be the year inflation went mad. Owners and buyers of investment homes in Miami are looking at how much rent to charge to cover mounting costs and interest rate rises. Of course, residents will also be redoing their rent budgets keep a roof over their heads.

How to price your Miami rental property with realistic, real-time rent valuations

The take away from all this madness is that this isn’t the same rental market of years gone. Property values have changed too much, we’re all playing a different game now. Yet, it seems this is news to the property management industry, who are still using a handful of comps to price Miami homes in this complex rental market.

Belong addresses complexities by taking a modern approach to pricing homes on the rental market. In fact, Belong has ditched the property management model to offer a completely approach to the rental market.

When helping homeowners in Florida, Belong uses technology to blend live market data with an all-important metric: real demand for each home. We determine the right price for your home that will maximize rental income and keep vacancies low, long-term. And because we extend our services to renters as part of our community, we attract the best of the best to place in your rental property.

Belong averages 66% less vacancy than property managers

Once your Miami home is listed on Belong, we get a true measure of the home (not just the market benchmarks). Our proprietary tech examines impressions, tour sign-ups and how many people have started rental applications. With all that data at our fingertips, we can work with homeowners to react quickly and maximize rental value, while minimizing vacancy.

As a result, we trump the property management industry with 66% less vacancy. And our residents want to stay too. 71% of Belong residents renew their 1-year lease (and unlike property management companies, this is done at no cost to homeowners).

Regardless of how your Miami rental home is valued, if you already have a tenant in place,  you can’t just decide to play catch-up and throw a massive rental increase at your residents.

In May 2022, Miami-Dade County passed their first Tenants Bill of Rights, which governs rental hikes. Owners need to provide their residents with 60-days notice for any rent increases of more than 5%. So if you feel your home is undervalued, be respectful and keep an open dialogue with your residents to ensure your price increase is fair and lawful.

If you switch your rental home to Belong’s residential network, we can assist with this process. Plus, we will be on hand 24/7 to assist your residents, freeing you up to focus on other things in your life.

Goldilocks rental pricing that is just right, for right now

With a unique approach and live insights from the Florida rental market, Belong knows exactly what high-quality, long-term residents are looking for and what they are ready to pay, right now.

The result is fewer vacancies, great people caring for your home, profitable rental income, and no tricks or compromises that could put you at legal risk or devalue your home as a rental investment.

Find out how Belong would value your Miami rental at https://belonghome.com/homeowners/miami. Got a Florida home for rent outside of Miami? Check out our homeowner guides for Orlando and Tampa.

We found 7 top-rated property management companies in Washington State, as rated by real landlords on Google. Find out why Belong outperforms them all.

Find Out Who Outshines The 7 Top-Rated Property Managers in Washington

From the rocky mountains to the counties across the Puget Sound, if you own a home in Washington, you need to ensure it’s well-kept and profitable on the rental market. But as you sift through Google reviews, you’d be forgiven for thinking that all of the top-rated property management companies are the same. They are. 

The sea of sameness in the market is exactly why Belong exists. To break that mold once and for all. Find out why Belong is changing the entire renting industry for both landlords and tenants — or as we prefer to say, homeowners and residents.

Belong vs property management companies in Washington

When comparing property management companies across Seattle or Washington, you’ll be looking at a handful of differences between them all. How much do they charge for management fees and how often you are going to get slogged for more (if they even tell you!). 

With Belong, there’s no comparison. Because Belong isn’t a property management company, it’s a completely unique experience that is humanizing the rental market. 

Here are 13 ways Belong does things differently to the average Seattle property management company: 

Guaranteed Rent: Receive your rent on time, every month, regardless of when it’s paid by residents.



24/7 Concierge Support: Both homeowners and residents have access to real-time support, going above and beyond emergency maintenance requests.



Transparent fees: No hidden costs like setup fees or lease renewal charges.



Modern-day marketing: Virtual tours and video marketing are included in every listing.



Market-driven insights: Belong utilizes market data and real-time interest to maximize the value of your home.



User-friendly app: Belong's app provides convenient access to documentation, cash flow insights, and financial and insurance solutions. 



Long-term residents: Belong takes a personalized approach to match the right people, so they stay longer and feel at home.



Innovative financial solutions: Homeowners can manage cash flow effectively, even splitting the cost of maintenance and placement fees.



Eviction protection: Owners are shielded from up to $15,000 in legal costs if we ever place the wrong people.



Extensive vendor network: Belong connects homeowners with a vetted network of over 10,000 professionals for repairs and renovations.



Comprehensive insurance solutions: Belong offers insurance options that protect homeowners, their properties, and residents.



Lightning-fast listing responses: Belong directly integrates with top rental platforms such as Zillow and Zumper, getting you responses faster and vacancies filled. 




Homeowners referral program: Earn $1,000 by referring a qualified homeowner when they join Belong. 

If you still want to view the top-rated property management companies in Seattle and the great state of Washington, we found them. Below you’ll find a list that features companies who have been rated 4.5 stars and above, by over 100 people in the greater Seattle rental market. It bored us to tears. 

Even though Belong rated #1 on this list, it became clear we were comparing apples with oranges. Or a hospitality service for the rental market with a real estate agent. Check out Belong’s top-ranked listing before you compare with the rest:

Address: 500 Yale Ave N, Seattle WA, 98109

Website: https://belonghome.com/homeowners/seattle 

Google Rating: 4.8 Stars (based on 368 reviews)

Areas Served: Seattle, WA and the surrounding areas — plus growing across the country including Miami, LA Area, Bay Area, Orange County, San Diego and more

24/7 Support: Yes, both landlords and tenants get 24/7 concierge support

3D/Virtual tour: Yes (included free of charge) 

Evictions: For evictions of tenants chosen by Belong, Belong will cover legal costs up to $15,000 and Owner shall pay any amount in excess of $15,000. Belong will not cover such expenses for any existing leases or tenants. 

7 top-ranked property management companies in Washington

Note: Details and pricing are based on internet research conducted in May 2022 and are subject to change by the companies featured, so please speak to these companies directly before making any final decisions. 

Google Rating: 4.7 (based on 200 reviews)

Areas Served: King County and Snohomish County, Washington

Evictions: Eviction Guarantee, the first $1,000 in legal costs for any eviction is covered

Address: 6131 NE Bothell Way, Kenmore, WA 98028

Google Rating: 4.6 (based on 255 reviews)

24/7 Support: Evening, Weekend, Holiday Emergency Response Service only available to premium pricing

Evictions: Eviction protection is included in premium pricing

Address: 8809 Roosevelt Way NE, Seattle, WA 98115

Google Rating: 4.6 (based on 161 reviews)

The Belong team is top notch…They have consistently pursued the best options for both the Landlord and Tenants, and are a model of what professional management companies should be. I highly recommend Belong!” - Frank L

I'm an owner who uses Belong for property management. They have been really great. Whenever there's an issue, they proactively work to find a resolution. They've also done a great job keeping the tenant happy. Their rental guarantee is why I chose them, but their customer service is what's keeping me!” - Peter G

A totally hassle and hands free experience…they guided us every step of our way. They answered our questions quickly, rented out home quickly, and paid on time. Super recommended!!!" - Chunrong W

Think your Washington home belongs with us? Find out if you qualify here.

What are the experts saying about rising interest rates and the impact on the housing market for homeowners and real estate investors? Find out in our 2022 chat with Jon Martin and Celeste Löfqvist

Ask The Experts: Let’s Talk Rising Interest Rates & The Housing Market

You asked, we answered. Homeowners have told us the biggest concern on their minds at the moment is rising interest rates and its impact on the American housing market. So in June, Belong launched its first webinar conversation (not financial advice as the classic disclaimer would say!) with experts in real estate to address your burning questions. For anyone who missed it, you can catch up on the recording here or check out the article below for the highlights. 

Jon is a career Asset Manager, based in Los Angeles, who has managed well over a billion dollars in real estate assets on behalf of institutional clients. Partnering with Belong, he has shifted his focus to supporting smaller scale real estate investors in this wild financial climate. 

Celeste works closely with the product team and consultants such as Jon to adapt financial planning and asset management approaches for the everyday rental property investor. She partners 1:1 with Belong Homeowners to help navigate strategic decisions to optimize their investments. Previously, Celeste was a Partner at the Boston Consulting Group in the Bay Area.

Are the recent interest rate rises the end of “cheap debt”?

Interest rates have risen sharply in 2022 after more than a decade of historic lows coming out of the Great Recession. In 2020 and 2021, the 30-year mortgage rate had fallen below 3%. Yet by the end of May 2022, mortgage rates had doubled, reaching well over 5% for the 30-year fixed — coming as a big shock to many who don’t remember the sky-high rates of the 80s. 

“It’s worth grounding ourselves in the fact that historically speaking, rates are still low,” says Celeste. 

“100%,” agrees Jon. “...we’ve gotten very used to cheap debt. But in the 80s, rates briefly spiked over 15% — also when the Fed was battling record inflation. Even more recently than that, rates before the Great Recession were 5-6%, like what we’re seeing already this summer,” explains Jon. “Rates have just come down and down for 20 years now, which has fueled a rise in asset prices and tremendous equity gains for a generation of Americans who have had money in real estate along this journey”, he adds. 

Chart: Interest rates over the past few decades

So what next? With inflation still accelerating and not plateauing, there’s likely to be more rises on the horizon for July and beyond. 

“That being said, everyone is expecting more meaty rate hikes from the Fed at this point – this expectation has already been priced into the mortgage rates we’re seeing,” explains Celeste. “The reason we saw this sharper acceleration in June was because May numbers were worse than expected. Everything in economics is relative to expectations,” she says. 

“The Fed is obviously hell-bent on taking the steam out of pricing pressure. They’re looking to bring inflation back to the 2% steady state range. The next big indicator to watch is the June inflation data, which will be released mid-July. If high inflation persists, there will be more rises to come,” says Celeste. 

Will we see interest rates as dramatic as the 80’s and 90’s? 

Jon doesn’t seem to think so. “As Celeste mentioned, expectations for further hikes through the rest of 2022 are already cautiously priced in, so it’s unlikely…but rates won’t taper off until inflation does. So certainly don’t expect to see 3-4% mortgage rates again anytime soon,” he says. 

What does the current inflation rate mean for the housing market in 2022?

Jon says that on the simplest level, rising interest rates make home purchases more expensive, which reduces consumer buying power. This shrinks demand and pulls down prices. He provided this example:

At 6% interest = ~$3600 per month (Over 40% more expensive!)

“You can potentially refinance later on, but on a monthly basis, those sort of 30-50%+ shocks are just not feasible for pretty much anyone,” explains Jon. 

“It’s paralyzing to potential buyers, and when you layer this on top of the asset price increases we’ve seen over the past year, buying a house this summer could be 60%+ more per month than buying that same house last summer. And that pressures people to trade down what they’re buying, or in many cases, bow out of the housing market entirely,” says Jon. 

Data from Redfin (pictured below) shows the staggering leap on the cost of a mortgage payment on a medium home in 2022. 

The next graph (also from Redfin) shows that the asset prices had already started to diverge from buyer budgets before the rate hikes. This is based on what buyers are searching for on Redfin. “As people qualify for smaller mortgages, you can expect this pattern to continue,” says Celeste. 

Jon says “Right now economists are pretty mixed about how this will all net out for housing prices – that’s the big question. Few believe that a significant crash is on the horizon, but it’s hard to believe a meaningful cool-down isn’t finally seeping in.”

Celeste agrees, “Yes. No one's expecting this to be like 2008 – the market looks meaningfully different. The supply/demand balance looks different, homeowners have more equity built up in their homes, and lower debt service ratios than we’ve had in decades. So we don’t have anywhere near the structural fragility we had 15 years ago,” she says. 

“Exactly. But we’re still early here. Where we’re definitely seeing the impact already is on the volume of listings & sales. After years of record-low supply, the number of listings has been growing over the Spring and into Summer. And by this month, the total number of listings on market is up 15%+ over last year,” adds Jon. “So you see that we’re starting to accumulate some excess supply relative to tightening demand. You have some skittish homeowners that are trying to take advantage of still-high prices, but a gap is starting to emerge between seller expectations and what buyers are able to pay. So consequently, we’ve seen home sales fall for each of the last 6 months. Mortgage applications are down over 15% since last year, and of course, refinancing has basically gone to zero,” says Jon. 

“It makes sense that many folks are retreating to the sidelines to wait this out,” says Celeste. “Jerome Powell basically gave that advice explicitly in his latest press conference, to young folks in particular. There was a great New York Times article essentially saying just this. As interest rates spike, we can expect folks to simply stay put, or even be “underhoused” – to live in less house than they perhaps need or want. In this rate environment, it can make more sense to renovate or expand, rather than move – but whatever you do, don’t give up a low, fixed mortgage.”

What does this mean for the rental market specifically?

Since all of the Belong homeowners hold rental properties, Celeste and Jon discuss what this means for the rental market. 

Jon notes that what is tough news for many Americans grappling with inflation, is actually positive for rental property owners, with the hot rental market likely to intensify further. 

“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,” explains Jon. 

“From the Homeowners perspective, with lower and typically fixed rate mortgages already locked in, and rents likely to continue rising, yields will improve. It’s a fantastic time to be sitting on rental property,” he notes. 

Is now a good time to be acquiring a rental property?

One final Q&A from our webinar audience was for those who are thinking about acquiring rental property. Is now a good time or should prospective investors hold off?

Jon says now is a good time to keep a watchful eye for opportunities. “After so many years of intense competition, there’s honestly some welcome relief here – with cooling demand and fewer bidding wars, coupled with rising rents, we should see some cap rate expansion in the near future, meaning pricing coming down,” he says. 

“The question comes down to what your overall hurdle rate is given the current market conditions. So 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 through less competition, and hopefully better pricing are creating a more attractive market for acquisitions.”

“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. This will only help when running the numbers to see if your rental income will cover your operating expenses and mortgage payments,” he adds. 

“And finally, and this may just serve as a reminder to most of you, are the tax advantages of holding rental property – having the ability to depreciate the physical structure of the home and the cost of any property improvements; along with deducting most expenses related to operating a rental. So all in all, the picture can still look quite good for acquisitions,” says Jon. 

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. Contact us or learn more about becoming a Belong homeowner here.

What are the experts saying about rising interest rates and the impact on the housing market for homeowners and real estate investors? Find out in our 2022 chat

Are San Diego rental property prices up or down? Forget the news and see what happens when you take a real-world approach to pricing a San Diego rental home.

Forget the News: This is How You Should Price San Diego Rental Homes

San Diego ranks as one of the best places to raise a family, making it a popular rental market for single-family homes. So if you own a home in “America’s Finest City”, how should you expect to price your San Diego rental property? 

If you’ve been following the news, you’re not going to get many helpful clues on how to evaluate your rent. In June 2022 alone, The San Diego Union Tribune reported that rents for single-family rentals increased by 10% this year — while Fox 5 says that rents have cooled and are even falling this month.  

The truth is that all these reports are flawed, because they’re based on a very broad data-set of asking rents for available properties. They also incorporate high-end luxury properties that may not be comparable at all to your single-family home in San Diego. Bottom line: these stats don’t really reflect what is being paid in the market here and now. 

Even the property management approach of looking at homes in your neighborhood may not be the best way to decide what to charge for your home. There’s wild fluctuations in the market, inflation and interest rate changes. Other homes could have rented out a year ago when the market was a different place. 

So what’s the alternative? Belong has found a way to price San Diego rental homes based on real-world demand, not just what’s in the news. 

How to price your San Diego rental property with real-time demand

The best way to stay in step with the market is to price your San Diego home right from the start. When helping owners price homes in San Diego’s rental market, Belong uses technology to blend live market data with an all-important metric: real demand for each home. We determine the right price for your home that will maximize rental income and keep vacancies low, long-term. 

Once your home is on Belong, we get a true measure of the market by looking at impressions, clicks, tour sign-ups and how many people have started applications. With all that data at our fingertips — plus real estate benchmarks for the San Diego region — we can work with homeowners to react quickly and maximize rental value, while minimizing vacancy. 

And because we have ditched the property management model to create a residential network that is inclusive of residents, we attract the best of the best to place in your home. 

As a result, we trump the property management industry with 66% less vacancy. And our residents want to stay, with 71% renewing their 1-year lease (and unlike property management companies, this is done at no cost to homeowners). 

If you’re looking for a guide that covers the ins and outs of how to price a rental, we’ve covered 12 of those common pricing factors here. Or you can see if your property is eligible for Belong. 

With a unique approach and live insights from the San Diego rental market, Belong addresses the complexities and shifts in the rental market to determine exactly what high-quality, long-term residents are looking for and what they are ready to pay, right now. 

The result is fewer vacancies, great people caring for your home, profitable rental income, and no tricks or compromises that could devalue your home as a rental investment. 

Find out how Belong would value your SD rental at https://belonghome.com/homeowners/san-diego 

Belong

Ale, Owen & Tyler Founders

Dom Difurio

Natalie McNeal

Harrison Kelly

Afton Brazzoni

Ale, Owen & Tyler Founders

Dom Difurio

Natalie McNeal

Harrison Kelly

Afton Brazzoni