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9 tips on how to reach your financial goals in 2023 through the Seattle rental market.

Is It Worth Owning a Rental Property in Seattle in 2023?

According to a recent Redfin analysis, a typical home in Seattle was 88% more expensive to buy than rent. So even though Seattle prices have started to cool, homeownership remains out of reach for many Seattleites. This will continue to fuel the need for long-term rentals, keeping vacancy rates low and demand high. 

If you own a home in Seattle or have received an inheritance, long-term renting could prove more lucrative than selling in 2023. Sale prices are coming back down to earth after recent records, but single family homes in Seattle consistently attract good rents and opportunities for consistent returns and appreciation. 

As for would-be investors, a drop in housing prices also isn’t going to put Seattle in the “affordable” category any time soon! But a lack of bargains doesn’t mean that there aren’t opportunities to be had for those who do their homework. Check out this video from investment experts, BiggerPockets, for a deeper dive on investing in the Seattle real estate market. 

Regardless of where you are in your rental home journey, this guide to the Seattle rental market will cover some of the ins and outs of setting the right price and maximizing your return on investment in the Emerald City. 

The topics we’ll cover in this article include:

How much rent should I charge for a home in Seattle?

What is the rental vacancy rate in Seattle in 2023? 

How can I get the best ROI for my rental home in Seattle?

There’s no hard and fast rule for working out what to charge for rent in Seattle. Even the old ‘1% rule’ (charging 1% of the home value for monthly rent) went out the window years ago when house prices skyrocketed. For example, it used to be said that a home valued at $310,000 could charge $3,100 per month.

The median listing price for homes in Seattle in June 2023 is $850,000. But charging $8,500 per month for a modest single family home would likely result in a rental income of zero while the home sat empty. At Belong we’ve seen average rental rates sit between $2,476-$3,305 per month for the Seattle market over 2022/early 2023. 

But determining a rental value should be unique to every home based on the amenities, neighborhood, and demand. When helping owners price their homes for the Seattle rental market, Belong uses technology to blend live market data with an all-important metric: real-time demand for your home. We can determine the right price for your home that will maximize rental income, while attracting the best people to care for your home in the long term. 

According to Belong partner, Zumper, median rents are up 3% YoY in June 2023, trending up from last month. The big winners are homeowners with larger 3-bedroom spaces that saw a 17% jump in rental pricing. The breakdown by housing type is:

Read More: How to Find the Sweet Spot of Rental Pricing For Your Seattle Home

Not technically. Rent control measures are governed at a state level and are currently prohibited in Washington. That said, there are rules in Seattle that don’t apply to the rest of the state. 

Seattle has recently introduced restrictions that prevent landlords from increasing rent during a lease. You can only increase housing costs when the rental agreement is monthly or up for renewal, which makes getting it right the first time all the more important. There are also more protections in place for evictions, which you can learn about here. 

Homeowners looking to fill vacancies for rentals in the regions of Seattle, Tacoma and Bellevue should find new tenants quicker in 2023. According to the latest U.S. Census data for Q1 2023, rental vacancy rates in the Seattle/Tacoma/Bellevue area are sitting at a mere 3.3%, down from 5.7% this time last year.

When you have a home on the Seattle rental market, you need to know how to optimize your investment. You should start with an accurate cash-flow analysis and then look at how you can increase your returns without blowing out your expenses. 

Here are 9 tips on how to best reach your financial goals through the Seattle rental market. 

1. List your home as a long-term rental for stability

While a per-night rate might be attractive, the profits may be negligible once you account for the extra work and fluctuation in vacancies. Long-term renting can offer good returns and more stability than short-term vacation rentals in Seattle. Vacation rentals are also subject to restrictions, taxes and licensing requirements in Seattle that don’t apply to homes with a longer lease agreement. 

Read More: Short-Term Rental vs. Long-Term Rental: The Pros and Cons

Nothing messes up your rental cash flow like not getting paid. Your expenses don’t stop when the rent checks do, so the best way to avoid falling behind is to stay in the green with guaranteed rent. With Belong, rent collection is something you’ll never have to worry about. All homeowners receive their rental payment at the same time every month, regardless of when the residents pay it. 

Read More: How Guaranteed Rent is Changing Property Management Forever

3. List your home in summer for Seattle’s peak rental demand

Belong data shows that August-September is the best time to attract top dollar for your property in Seattle, with average rents peaking at $3,305 per month. Zillow data shows a similar trend with median rents peaking at $2,450-$2,461 in the August/September period. 

Besides the gorgeous natural playground of the Puget Sound, Seattle is home to many desirable school districts, so single family rentals attract hot competition and rents in the lead-up to Semester 1 in September.  

Read More: Peak Cash Flow: How To Achieve The Best Rent By Listing In Summer 2023

4. Get great photos and video marketing for your home

First impressions count and will influence the demand for your Seattle rental home. To attract long-term residents, you need to get them to fall in love with your home and imagine themselves spending a year (or many years!) there. Grainy photos of a poorly-lit bathroom aren’t going to do that. It’s why Belong includes video marketing and virtual tours at no extra cost to our homeowners. 

Read More: Virtual Open Homes: 5 Tips For Offering Video Inspections For Rentals

5. Find a partner or property manager who can find great tenants

A common question from landlords is “can a property manager help you to find tenants faster?”. The short answer is yes. Screening credit scores and running background checks on every applicant is a big job and real estate companies have the skills, knowledge and resources needed to find tenants quickly. 

Is owning a rental property in Seattle worth it? Here are 9 tips for landlords on how to reach your financial goals in 2023 through the Seattle rental market.

Reduce your financial risk of flood with 7 tips for rental home owners.

What Landlords Should Know About Flood Damage (And How To Reduce Risk)

Flood is the most common natural disaster and the most expensive when it comes to damaging a home. 

According to FEMA, one inch of floodwater can cause up to $25,000 in damage to a home. That’s a big cost to wear for the unprepared, especially in a rental home that should be earning you money, not losing it. 

All landlords need to ensure their rental home is in a liveable condition. After a flood, that could mean arranging for urgent repairs or ending the lease. If you’re uninsured, that means wearing this cost yourself. Flood insurance is not included in standard homeowners or landlords insurance policies, leaving you exposed to expensive risk unless you take action. 

This article will look at ways homeowners can mitigate and recover from the financial risk of flood damage to a rental home. 

Does landlords insurance cover damage caused by floods?

Will federal disaster payments cover flood damage to my rental homes?

What happens to a lease agreement if my rental home floods?

Am I responsible for paying relocation costs for tenants if my rental property floods?

How much does it cost to restore a home after water damage from a flood?

How can I minimize the financial risk of flood damage in my rental home?

Disclaimer: We’re on a mission to upend and redefine the traditional landlord-tenant relationship, so we refer to members in our network as homeowners and residents. That said, this article is for people who are looking for answers with more common industry terms like ‘landlords’ and ‘tenants’, so in some instances we have had to stick to the old moniker for owners of rental homes. This article provides a guide for homeowners, but should not replace legal or financial advice. Natural disasters create emotional and unique situations, so speak to a professional about your exact situation in the event of a flood or storm. 

Does landlords insurance cover damage from floods?

Flood insurance is not standard in most policies. Even if you have landlord insurance to cover a tenant-occupied home, there’s a good chance you’re not covered for floods unless you request it. 

There are two ways to get covered with flood insurance. The first is to opt for coverage in your own private landlord policy. The other is to join FEMA's national program. A policy from the National Flood Insurance Program (NFIP) will protect the following items in a rental property:

Refrigerators, cooking stoves, and built-in appliances like dishwashers

Permanently installed cabinets, paneling, and bookcases

Foundation walls, anchorage systems, and staircases

Fuel tanks, well water tanks and pumps, and solar energy equipment

If you have flood coverage with FEMA, this will cover for flood-related loss only. It won’t cover water damage unrelated to a natural disaster, such as burst pipes. There’s also no coverage for financial loss on an unlivable rental. For these reasons it’s a good idea to combine flood insurance with a robust landlord insurance policy for total peace of mind. 

Unless you have a furnished property, you won’t need to opt for a contents policy. Residents in your rental home need to have their own coverage to protect their belongings. This is why Belong insists that everyone in our network has insurance coverage for peace of mind and financial security.

If the President declares a federal disaster after a flood or storm, you may be eligible for financial help for your rental home. This could be a loan (which must be repaid) or a FEMA disaster grant. 

The average payout from a disaster grant is about $5,000 per household — not even close to what you’ll need to rebuild or make significant repairs to the home. A flood insurance payout will cover your individual claim based on the policy held and won’t need to be repaid. 

After a flood, you will be responsible for restoring the home to a livable condition. Your residents will continue to owe rent, but you may need to negotiate a rent pause or reduction while repairs are happening. 

If the home is not in a habitable condition, either you or the resident can end the lease with notice. You won’t be able to collect rent from the time the home was deemed uninhabitable, until repairs have been made. 

In the instance of severe property damage or total loss of the home, the lease will end immediately as the home will no longer be fit for use as a rental. You will have approximately 21 days to return the security deposit and any rent that has been paid in advance.

This question often comes up after a flood or major storm because the residents will often need to move out after a flood. 

Most state laws, including Washington and California, stipulate that landlords are not required to pay relocation costs if their home is damaged by:

Hurricane and storm damage are natural disasters. In these instances, you won’t need to front up costs to move the resident out while repairs happen.

Landlord negligence is a different story. Say for example you were notified of faulty plumbing and you didn't have it fixed. If a major pipe burst and flooded the home, you could be liable. In a scenario like this, seek advice from a lawyer immediately. The resident may pursue legal action to recover damages and relocation costs.

It's also worth noting that some lease agreements have specific clauses on relocation costs, so check the fine print. If your agreement includes relocation or accommodation for natural disasters, residents will be able to ask you to cover these costs.

The average cost of restoring a rental home after a flood depends on how bad the water damage is. Water damage falls into four classifications, 1 being a minor leak (like a toilet overflowing) to 4 for damage caused by a hurricane or major disasters. Most flood damage will fall somewhere between classes 2 and 4, with Forbes Home listing these average costs: 

Average cost to fix ‘Class 2’ Water Damage: $550 - $1,000

If a whole room is damaged, it is classified as Class 2 Water Damage. This may be a simple cleanup but requires professional help to fix the walls and possible flooring damage.

Average cost to fix ‘Class 3’ Water Damage: $1,100 - $3,200

If water damage is extensive in one room or spread to a few rooms, this is classified as Class 3 Water Damage and could cost a couple of thousand dollars to fix. This could include fixes to ceilings, walls and flooring and could be cost per-room depending on the extent of the damage. 

Average cost to fix ‘Class 4’ Water Damage: $20,000 - $100,000

Flooding from a natural disaster such as a storm or hurricane is likely to cause the worst damage, which is Class 4 Water Damage. When water spreads quickly through the home it can require extensive repairs and replacement of furnishings. 

Flood damage is a risk to rental homes in ALL areas and isn't covered by standard insurance. Reduce your financial risk of flood with 7 tips for landlords.

Unlock pricing trends, vacancy rates, price-to-rent ratios and more to make informed decisions about rental investments in LA, SF, Seattle, Miami and more

Unlock Insights into Major Rental Markets with Belong and BiggerPockets

Belong is making it easier for people to find financial freedom through real estate, while humanizing the rental experience, — in a market that has been long-dominated by major corporations and institutional investors. 

To kick-off this partnership, Belong worked with BiggerPockets to put together rental reports for three key markets:

California (SF Bay Area, Los Angeles and San Diego) 

Florida (Miami, Orlando, Tampa, Jacksonville)


In less than 10 minutes you can unlock pricing trends, vacancy rates, and more to make informed decisions about your rental properties. 

Check out the full reports on BiggerPockets here:

Is Seattle A Good Market For Real Estate Investing? Here’s The Latest Trends

The State Of Florida’s Rental Market: What The Data Means For Investors

We’ve included a brief highlight of what to expect from these reports. 

Disclaimer: The report data was accurate at the time of writing, with data collected between January and April 2023. Data collection and macroeconomic factors are subject to change without update. These reports are designed to provide information to assist your research and should not be considered financial advice. Please speak to a Belong consultant or a financial advisor before making any decisions on your rental property. 

What do investors need to know about the rental market in California?

There are few real estate markets with as many attractive cities as California. From the allure of luxury and lifestyle in Los Angeles to the tech scene of San Francisco, there’s a reason why California rents are often reported to be the highest in the nation. Yet these dramatic figures and bar graphs aren’t always a reflection of reality, incorporating everything from a studio apartment in Brentwood to a mansion in Beverly Hills. We wanted to provide you with a more accurate view of the rental income real people are earning, so this report delves into the average rent earned in the past 12 months on single-family homes and condos across Los Angeles, San Diego and San Francisco’s Bay Area. 

We also examine the rent earned month-by-month, alongside the number of applications to give a picture of the market peaks and patterns of rental demand. Hot markets can go cold or turn quickly due to the balance of supply and demand, so to optimize cash flow and achieve the best price for your rental, you need to have a strong pulse on the market and adapt quickly.

Watch the BiggerPockets video on achieving cash flow in California

What are the current rental market trends in Seattle?

Our next report heads north on the west coast, to the State of Washington, narrowing in on the city of Seattle, where real estate has appreciated by 137% over the past 10 years. This places the Seattle market in the top 10% for appreciation in the US.

But in 2022, Redfin reported that Seattle was the fastest-cooling market in the U.S. Is this providing the bargaining power that investors need to get into the Emerald City? Or are rocketing interest rates canceling out any savings from the market dip? As with the Californian report, the Seattle trends guide will look at real earnings and demand in the Seattle rental market in 2023, as well as macroeconomic factors to consider that may impact residential real estate. 

Watch the BiggerPockets video on Seattle's falling house prices here

Is Florida still an attractive market for real estate investors?

The land of sunshine and low taxes, Florida has long been an attractive state for real estate investors. With strong rental demand and no rent control laws, it was already a favorable state for landlords before the massive pandemic-fuelled migration and spike in home appreciation. But after years of reported rent hikes and affordability issues, is Florida still an attractive option for investors and renters? 

Our third and final report looks at housing appreciation, wage growth, and price-to-rent ratios in key markets across Florida including Miami, Orlando, Tampa and Jacksonville. 

Watch the BiggerPockets video on the fast-changing Florida housing market here

How real estate investors can keep a pulse on the rental market

Whether you’re new to real estate investing, dealing with a problematic property management company or burnt out on self-managing your rental home, BiggerPockets and Belong can help. 

BiggerPockets gets you battle-ready to invest in any market, even competitive ones like California, Miami, and Seattle. And when it comes to optimizing your rental pricing and day-to-day management of your home — Belong is upending the traditional property management model to deliver unique and innovative services to both homeowners and their residents. 

From not charging fees for the essentials to guaranteeing rent, Belong will partner with you to make owning a rental property worth it. And you'll never need to lift a finger. Learn more and find out if your home is eligible (even if you’re mid-lease!) at belong.com/homeowners.

Fire damage is a real risk to rental homes. Find out your responsibilities as a landlord in the event of fire and 9 tips to minimize risk of rental home fires

Reducing Fire Risks: 9 Tips for Landlords to Safeguard Rental Properties

From raging wildfires to kitchen mishaps, fires are a real risk for all rental homes. If disaster strikes, where does that leave you as the homeowner?

All landlords need to ensure their rental home is in a liveable condition. After a fire, that could mean arranging for urgent repairs or ending the lease.

It's hard to prevent house fires, but you can reduce your risk by knowing how to handle the situation. In this article, we will answer common questions on fire damage in rental homes and provide vital fire safety tips for landlords:

What happens to a lease if a rental home is damaged by fire?

Does landlords insurance cover damage from fire?

Do I need to pay relocation costs for tenants if my rental property is damaged by fire?

9 tips for reducing fire risks in a rental home

Disclaimer: We don’t enjoy using the word ‘landlord’. We refer to members in our network as homeowners and residents, not landlords and tenants, since we’re on a mission to upend and redefine the traditional landlord-tenant relationship. That said, this article is for people who are looking for answers with more common industry terms like ‘landlords’ and ‘tenants’, so in some instances we have had to stick to the old moniker for owners of rental homes. This article provides a guide for homeowners, but should not replace legal advice. Fires create emotional and unique situations, so speak to a professional about your exact situation in the event of a fire.

After a fire, landlord responsibilities vary depending on the extent of the damage. Common issues include:

The nature of the damage also impacts your lease. Here is an overview of three common scenarios:

If you own a rental home that has minor damage from a fire:

Minor damage would be something that could be repaired reasonably quickly (1-3 months) and has not destroyed a significant amount of the property. 

Residents will still owe rent and either remain in place or move out temporarily while repairs are completed

You will need to arrange for repairs urgently

Depending on the situation, you may need to negotiate a rent pause or reduction while repairs are carried out

If the home becomes uninhabitable, residents may take steps to end the lease

If you own a rental home that has been partially damaged from a fire:

Partial damage from fire is not total destruction of the home, but would likely leave parts of the home not fit for use until repairs have been completed. Partial damage generally applies to damage that would take six months or less to remedy. 

Either party can end the lease with notice if the home is not in a habitable condition, even partially

Residents may opt to end the lease or request to move back in when the home has been restored to a livable condition

Rent will not be due from the time the home was deemed uninhabitable, until repairs have been completed

You will not owe any relocation costs for residents regardless of which option they choose

If you own a rental home that has been destroyed by fire:

Severe property damage or total loss of the home will end a lease immediately as the home will no longer be fit for use as a rental.

In the event of total destruction or unsafe structural conditions, the lease will be terminated

You will have approximately 21 days to return the security deposit and any rent that has been paid to you in advance

Check with your insurer about compensation for loss of both property and rental income

Homeowners rely on insurance to cover losses on their homes. Homeowners insurance only covers owner-occupied homes, so you will need dedicated landlords insurance for any rented home.

Particularly if your house is on the West Coast where fires are a real and present danger, it’s important to take out a policy that has the right coverage for both accidental fires and wildfire damage.

Depending on the policy you have, most landlords' insurance can provide compensation for:

Replacement of damaged belongings (yours, not the resident)

It’s important to note that coverage generally applies to losses from accidental damage, such as a natural disaster. If it’s found that the fire was lit by you or the resident, or if you failed to maintain the home’s wiring and a fault caused the fire — restrictions and exclusions may apply. If you are at fault due to negligence, the insurance policy may still protect you from medical costs and legal fees if you are sued.

Residents need to have their own coverage to protect their belongings. This is why Belong insists that everyone in our network has insurance coverage for peace of mind and financial security.

This question often comes up after a fire because the residents will usually need to move out after a fire.

This means if your rental home is damaged by a wildfire, criminal arson, or the resident accidentally sets the kitchen alight — you won’t need to front up costs to move the resident out while repairs are made.

Landlord negligence is another factor. Say for example your residents notified you of faulty wiring and you didn't have it fixed. If it sparks a fire, you could be liable. In a scenario like this, seek advice from a lawyer immediately. The resident may pursue legal action to recover damages and relocation costs.

It's also worth noting that some lease agreements have specific clauses on relocation costs, so check the fine print. If your lease agreement includes relocation or accommodation for natural disasters, residents will be able to ask you to cover these costs.

Melanie Kershaw

Mel Kershaw is a Content Lead at Belong. With an extensive background working with technology companies including Eventbrite and Yelp, she’s always looking for ways to create educational and informative articles that simplifies tech and solves problems for her audience.

Brett Jaffe

Tamara Epelbaum

Annalise Mantz

Lauren Slagter

Harrison Kelly

Brett Jaffe

Tamara Epelbaum

Annalise Mantz

Lauren Slagter

Harrison Kelly