Furnished vs. Unfurnished Rentals: Maximizing Your Rental Income

Renting out your home can be a lucrative investment, but deciding whether to offer it as a furnished or unfurnished rental can be a pivotal decision. Tenant preferences have evolved over time, and as a homeowner looking to maximize your rental income, you need to consider these shifts carefully. In this comprehensive guide, we'll compare the benefits and drawbacks of providing furnished versus unfurnished rental units while emphasizing the importance of a professional management company in this decision-making process. Let's delve into this topic, exploring how you can optimize your property for both tenant satisfaction and your financial success.

Furnished rentals have their own set of advantages and disadvantages. Let's take a closer look:

Higher Rental Income: One of the most appealing benefits of offering a furnished rental is the potential for higher rental income. Furnished homes typically command higher monthly rents because tenants are willing to pay a premium for the convenience of moving in with minimal hassle.


Attract a Diverse Renter Pool: Furnished rentals appeal to a diverse range of tenants, including students, young professionals, and corporate travelers. This broader tenant pool can lead to shorter vacancy periods and increased demand for your property.


Minimal Initial Set-Up: By providing furniture and appliances, you eliminate the need for tenants to purchase these items themselves. This convenience can make your property more attractive and streamline the rental process.



Higher Upfront Costs: Furnishing a rental property can be expensive. The initial investment in furniture, appliances, and décor can be substantial, potentially eating into your rental income in the short term.


Maintenance and Wear and Tear: Furnished rentals often experience more wear and tear due to the constant turnover of tenants. You may need to budget for more frequent repairs and replacements, which can affect your long-term profitability.


Limited Personalization for Long-Term Renters: Some tenants prefer to bring their own furniture and personalize their living space. By offering a furnished rental, you limit their ability to make the space their own, most likely deterring long-term tenants.

A handy resource: How much does it cost to be a landlord? 

Now, let's explore the benefits and drawbacks of unfurnished rentals:

Lower Initial Costs: Unfurnished rentals require less upfront investment since you won't need to purchase and maintain furniture and appliances. This can result in a higher initial return on your investment.


Tenant Personalization: Unfurnished rentals allow tenants to bring their own furniture and décor, creating a space that suits their preferences. This personalization can lead to longer lease terms and more responsible tenants who treat the property as their own.


Lower Maintenance Costs: With fewer items to maintain and replace, unfurnished rentals generally have lower maintenance costs. This can contribute to a more predictable and stable rental income.



Limited Tenant Pool: Unfurnished rentals may attract a more limited tenant pool, primarily consisting of long-term renters or families. This could lead to longer vacancy periods between tenants.


Lower Monthly Rent: Due to the absence of furnishings, you may need to offer lower monthly rents compared to furnished rentals. This could result in a potentially lower overall rental income.


Move-In Hassles: Some tenants may find the prospect of moving their furniture into an unfurnished property daunting. This can lead to a longer rental search process and a slower turnover rate.



A critical aspect of optimizing your rental property is the management of the property itself. Professional management companies can be invaluable in making this decision:

Market Insight: Management companies are well-versed in local market dynamics and tenant preferences. They can provide valuable advice on whether your property is better suited for furnished or unfurnished rentals.


Tenant Screening: Professional management companies excel at tenant screening, ensuring that you attract responsible tenants who will care for your property, regardless of whether it's furnished or unfurnished.


Maintenance and Repairs: These companies can handle all maintenance and repair issues efficiently, reducing the impact of wear and tear on your rental property. This is especially beneficial for furnished rentals.


Optimized Pricing: Management companies can help you set the right rental price for your property, ensuring you maximize your rental income while remaining competitive in the market.


Marketing and Advertising: They have the expertise to market your property effectively to the target audience, whether it's furnished or unfurnished. This can reduce vacancy periods and increase your property's visibility.

Deciding between offering a furnished or unfurnished rental property is a crucial decision that depends on various factors, including your investment goals, budget, and the local rental market. While furnished rentals can yield higher rents and attract a broader tenant pool, they come with higher upfront costs and maintenance requirements. On the other hand, unfurnished rentals may have lower monthly rents but offer lower initial costs and a more personalized experience for tenants.

A great place to start is assessing short-term rental vs. long-term rental, which one is right for you. Belong helps homeowners all across the US get the best value for their long-term unfurnished rentals. We have thousands of homeowners who trust us with the end-to-end management of their homes.

At Belong, we've got your back with a bunch of end-end management solutions that work like a charm, all wrapped up with some seriously cool technology. Jump on board with these strategies and partner with us to position yourself as a trusted and professional rental homeowner in today's competitive real estate landscape. 

We know how much you care about your place, and we do too. That's why Belong PRO is your ultimate choice for taking care of your precious rental home from start to finish. We’re redefining what the future of property management can be from Seattle to Oakland, Redmond to Los Angeles, Tampa to San Diego, and more!


Disclaimer: Belong thinks the word landlord is outdated and prefers 'homeowners'. But in this article we need to make an important distinction between owner-occupied homes and landlords with tenant-occupied homes or vacation rentals, so we have to use the words landlord and tenant a little more than we'd like. This article provides a guide on the types of insurance available and approximate costs but should not be considered financial advice. Please read all insurance policy guides to ensure you have something that suits your personal home and situation. 

Discover the key differences between furnished and unfurnished rentals, and learn how to optimize your rental property strategy. Explore tenant preferences and get expert advice. Find out if professional property management is right for you.

Furnished vs. Unfurnished Rentals: Maximizing Your Rental Income | Expert Insights

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Protect your rental home asset and see why SFist, Expertise.com and Bay Area homeowners all rate Belong the best property management solution in San Francisco.

The Best Property Manager in San Francisco According to SFist and Expertise.com

A rental home is likely the most valuable asset you’ll ever own. How it’s managed and cared for can have a huge impact on both your net worth and overall financial freedom. This is why finding people you can trust to look after your rental and prioritize your own financial goals is a big deal. 

But the property management industry has failed at this for too long — putting profit at the expense of the people who own and rent homes. Belong exists to challenge the status quo of property management. We’re a modern, people-first alternative, which is why we’re thrilled to be recognized by SFist and Expertise.com as the best option for rental home management in San Francisco. 

If you’re deciding if Belong could be a good fit for you and your rental home, here’s why these two companies rate us the best property manager in San Francisco. 

Sfist.com: #1 Best Featured Property Manager in San Francisco

Since 2004, SFist.com has dedicated itself to providing guides to the best of everything in San Francisco. They put Belong at #1 of 11 Best Featured Property Managers in San Francisco. 

In their own words, here’s why SFist gives Belong 5-stars:

Belong is a cutting-edge property management company offering homeowners stress-free, hands-off rental management solutions. Serving both homeowners and tenants, Belong goes above and beyond to provide a concierge-like service that ensures every detail is handled seamlessly. With over 1,942 homeowners trusting in their service, Belong offers homeowners guaranteed rental payments, maximized rental value, and 24/7 professional responses to inquiries. By prioritizing financial alignment, Belong fosters a true partnership with their member community, ensuring long-term wealth and rental income stability. Their dedication to customer satisfaction can be seen in their reviews, making them an ideal choice for property management.” 

- SFist, 11 Best SF Property Management Companies in 2023 

Expertise.com: 19 Best Property Management Companies in San Francisco

When it comes to research, Expertise.com doesn’t muck around. They vet more than 60,000 businesses every month to find the best of the best. Belong sits on their 2023 list of Best Property Management Companies in San Francisco. 

Expertise.com researches professionalism and combines online reviews to determine how customers feel. They awarded Belong a glowing 5 stars for professionalism and 4.7 stars for reputation.

Belong doesn’t call itself a property management company because we are taking things in a whole new direction. We combine industry-busting technology with human smarts to make renting lovable for both homeowners and their residents.

Here are 12 ways Belong is unlike any property manager you’ve seen:

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 with Belong PRO, going above and beyond emergency maintenance requests.



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



Modern-day marketing
No extra fees for rental marketing must-haves like photography and video.



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



Everything at your fingertips
Get support, documents, cash flow insights, contractors, even finance and insurance solutions, all in one easy app. 



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. 


By partnering with Belong PRO, you won’t have to deal with the common complaints of traditional property management companies including poor communication, bad tenants, hidden fees, low-quality maintenance work, and high property vacancy. 

See why thousands of US homeowners are ditching outdated Property Management in San Francisco,San Diego, Los Angeles, Tampa, Jacksonville, Concord, Berkeley, Orlando and more.

What happens when you inherit a house? From other benefactors to mortgages and housekeeping, we cover what to expect and how to get help making key decisions

What To Expect When You Inherit a House and How To Handle It

What happens when you inherit a house? It's a question that is often asked at an emotional and stressful time in a person's life, when faced with the prospect or reality of losing a loved one. 

Inheriting a house comes with many financial decisions and tax implications to consider. You'll also need to involve any other benefactors, such as siblings. Belong breaks down some of those key decisions and who can help you navigate them.

What happens when you inherit a house with siblings or other people?

Multiple benefactors = many opinions. One may want to sell, another may want to hang onto the home to rent or even move in. The shared gift of a home can be a tricky situation to navigate. It's important to expect some bumps along the way, but to stay open with communication and try to respect everyone's opinion.

You'll need to work together to come to an agreement that works for everyone. Your options include:

One person buys out the other/s, either in cash or by financing part of the home's value to either move in or use the home as a rental property

Sell the home and split the profits after expenses

Rent out the home and share the profits after expenses

Allow one person to move in and owe rent to live in the home

How to handle inheriting a home with beneficiaries

Regardless of the decision you come to, a family attorney is the best place to start. This will help you to get advice, facilitate discussions between heirs, and have an agreement put in writing to avoid misunderstandings or complications after a decision is made. 

If you and the other beneficiary/ies can't agree, a family lawyer can also advise next steps. You may need to file a suit for partition, ordering the sale of the home. Be aware that this is a costly process and could erode your profits considerably when the sale comes through. 

For families who want to hold off making any snap decisions on the house you’ve inherited, the rental market is a good option. Turning the home into a long-term rental can allow you to earn income and appreciation on the home, while everyone takes their time to consider their options. Of course, managing a rental home also comes with significant work, so we recommend hiring a professional to take the stress (and potential arguments!) out of renting the home. 

What happens when you inherit a house with outstanding debts?

If the home you have inherited has a mortgage or outstanding debts against it, this could influence any decisions you make. In most instances, proceeds from an estate are used to clear any outstanding debts before any remaining funds are transferred to beneficiaries. Mortgages can be a bit different, though. 

The deceased estate may have been used to clear the mortgage, or there could still be money owing on the home. Be sure to speak to the financial institution that holds the debt, to discuss any clauses.

If the mortgage holder dies and their home is transferred to a relative or living trust, the mortgage repayments can usually be assumed by the heir/s. If you are not related to the deceased, you may need to watch out for due-on-sale clauses, which require mortgages to be paid in full when a home is sold or transferred. You would need to refinance the home at the current interest rate if this is the case, so seek professional financial advice specific to the home and your situation. 

Some people draw equity on their home during retirement by way of a reverse mortgage. You'll need to speak to the lender about how to satisfy this loan and the time restrictions on doing so. You may need to refinance this loan, use your own funds, or use the proceeds from a home sale to close this mortgage. 

If the property you are inheriting is worth less than the outstanding debt against it, the lender may agree to a 'short sale' and accept any proceeds from the sale, rather than go into foreclosure. 

How to handle inheriting a home with a mortgage

Again, this is a scenario where a family attorney is a good place to get legal advice on how to handle your specific situation. In the US, the Commercial Financial Protection Bureau (CFPB) has information about how to obtain mortgage information on a home you have inherited, as well as a list of HUD-approved counseling agencies and a hotline for anyone with questions relating to consumer finance and treatment from lenders. 

What happens when you inherit a rental home?

What happens when the house you have inherited isn't used as a main residence, but as a rental home? This adds another layer of complexity to the matter, as there could be residents already living in the home under a 12-month lease agreement. 

In this case, you and your family could wind up being what's commonly known as "accidental landlords". That is, someone who inherits a house along with a whole host of responsibilities that come with managing a rental property. 

You still have the option to sell or move in, but you'll need to get up to speed with local and state landlord-tenant laws and the terms of your lease agreement to avoid any issues where you may be liable for compensation. It's likely that the residents will have the right to stay in place until their lease expires, or you may want to look for a buyer who is interested in a tenanted investment home. 

How to handle inheriting a rental home: 

The easiest option in this scenario is to continue renting the home, keeping the residents in place to avoid breaking any legal agreements. When the tenancy is due to end, you (and the other heirs, if any) can decide what to do with the home going forward. 

Continuing to rent the home can be a beneficial option. Besides enjoying passive income, the IRS will consider the value of the home on its current market value, known as a "stepped up basis." This means that when it comes to capital gains tax if/when you do sell the home, the appreciation will be based on the value that you inherited it at. This is a big difference to if you were to buy an investment property for yourself, where appreciation will be based on what you paid for the home. You can learn more about the tax considerations for inherited homes here. 

Whether you're inheriting a home as an individual or as a family, it's important to get help with managing your new home and residents. You should also ask a lawyer or financial advisor about whether it's a good idea to transfer the property into a limited liability company (LLC) to manage, depending on the personal circumstances of you and/or the other heirs. This can keep your own personal and business assets separate from the inherited home.

If you're continuing to use the home as a long-term rental, you should be able to deduct the costs of lawyers and accountants for any advice or services relating to managing the home. 

What are some of the tasks I’ll need to do after inheriting a house?

In addition to all the major decisions, there's a fair bit of housekeeping that can be overlooked after inheriting a house. Be sure to:

Order an appraisal, to have a record of what the home is worth at the time of inheritance (essential when it comes to tax time and making financial decisions)


Keep paying homeowner or landlord insurance premiums, either transfer them from the previous owner or take out a new policy/ies and don't let them lapse!


Transfer utilities to avoid having them switched off


Continuing upkeep of the home and gardens to avoid it falling into disrepair


Find out if there is any finance on the home or unpaid property taxes due


Research options for professional advice on legal and financial matters

This story was produced by Belong and reviewed and distributed by Stacker Media.

Belong is simplifying the rental experience across the US and helping more homeowners reach their financial goals with the most hassle-free property management service; BelongPro.

Visit our local pages to learn more about the future of renting:

Inherited A Home? We Can Help!

We're making renting lovable for Utah homeowners and their residents

High-Tech, But Human: The Lovable Future of Renting in Salt Lake City

Belong has a very different vision for the US housing market than the one that currently exists. One where homes are in the hands of real people, not corporations. Helping homeowners to achieve their financial goals through real estate and to help those who rent long-term to find a sense of belonging in the houses they call home. 

Today we’re excited to bring this vision to the vibrant and scenic urban hub of Salt Lake City. We’re bringing Utah industry-busting services that are top-rated and beloved by over 2,000 homeowners. 

Because property management in Salt Lake City is long overdue for an upgrade. If you’ve been shopping around for someone to look after your SLC rental home, we’re sure you’ll agree: it’s a sea of sameness. Even the best property managers in Utah leave a lot to be desired. This is exactly why Belong has arrived in Salt Lake City to challenge the status quo. 

How? With an innovative alternative to property management that puts people first, enabled by best-in-class technology and services. 

Can your property manager guarantee your rent every month? Are they on hand 24/7 to answer any questions you or your residents have, at any time of day or night? We didn’t think so. Before you hunt through endless lists of property managers in your neighborhood, we want to tell you why you should ditch them entirely. 

We don’t count our achievements by years of service, but real innovations to the industry. Here are 12 ways that Belong is revolutionizing renting for homeowners in Salt Lake City:

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



Everything at your fingertips
Get support, documents, cash flow insights, contractors, and even finance and insurance solutions, all in one easy app.
 


If you know someone looking for a property management solution in Salt Lake City, we also have a referral program for homeowners. You can earn $1,000 if your referral joins the Belong PRO network. Learn more here.

The best way to rent out your Salt Lake City home

Belong is simplifying the rental experience across the US and helping homeowners reach their financial goals on their own terms. If you own a rental home in Salt Lake City, now is the time to find out if you’re eligible to ditch property management forever and join Belong PRO. 

Comparing the best property managers in Salt Lake City? You can do better. Get guaranteed rent, 24/7 support and a better rental experience in Utah with Belong

The Best Property Management in Salt Lake City Is Getting a Major Upgrade

What is a debt-to-income ratio and how does it affect mortgage lending when buying a rental home?

How To Master Your Debt-to-Income Ratio: A Guide for Rental Homeowners

When you’re looking at home financing, you’ll need to get acquainted with a figure known as your debt-to-income ratio (DTI). Before your eyes glaze over, it’s not too hard to calculate. 

What is a debt-to-income ratio and why does it matter? Mortgage lenders look at how much you earn every month and work out what percentage of that is attached to debt repayments. DTI won’t calculate your borrowing limit, but it helps assess your capacity to service a mortgage i.e. more debt. 

If your debt ratio is too high, it means you don’t have a lot of spare cash to make repayments. Or for a rental home, that you may not have enough cash flow to cover your expenses. 

In this article, we’ll cover how to calculate your debt-to-income ratio and how to lower it to secure an investment property for the rental market. 

A debt-to-income ratio is all monthly debt repayments divided by your gross monthly income. It’s used to determine your ability to manage mortgage repayments.

A debt-to-income ratio below 36% makes it easier to get approval for a mortgage. 

A debt-to-income ratio above 43-50% suggests that your debt is too high for the amount of income earned. 



Increasing your income or paying down small high interest debt such as car loans and credit cards can improve your DTI. 

There are ways to prove potential income for a rental home to be included in your DTI calculation, but this will depend on your lender. 

A debt-to-income ratio (or DTI) is calculated by adding up monthly debt payments and dividing them by your monthly income (before tax) to work out the percentage of debt vs income. 

When applying for a mortgage, lenders look at your income vs how much of it is attached two categories of financial obligations:

The dollar amount of ongoing household expenses such as mortgage payments, property taxes, insurance, HOA fees etc. 

The dollar amount of regular debt repayments such as credit cards or car loan, plus any other financial obligations you may have like student loans, child support or alimony payments.

This means a DTI only calculates debt and the fixed cost of ongoing financial arrangements. It doesn’t account for your household spending such as groceries or school fees. 

Example of a debt-to-income ratio calculation

If you had a salary of $75,000 per year, you would earn approx. $6,250.40 per month. Let’s say your household expenses total $1,500 per month and paying off a credit card and student loan costs you $350 per month. 

Debt-to-income calculation: 1,850/6250.40 = 0.295

If you were earning rental income from your property, you would add this to your gross monthly income. If you paid down a student loan or canceled a credit card, this would come off your back-end DTI. 

Learn More: Need help with a rental home? Discover Belong PRO, the best alternative to Property Management in Seattle, Redmond, Oakland, and many more cities across California, Florida and Washington State.

What is a good debt-to-income ratio for a rental property?

If you want to buy an investment property for the rental market, you’ll need a favorable debt-to-income ratio. A ‘good’ DTI vs ‘bad’ DTI depends on many factors, including:

Most lenders prefer a debt-to-income ratio of 36% or less. Others may accept up to 50%, depending on the above factors. 

If you’re buying a home for the sole purpose of having a long-term rental, the potential to add rental income to your gross income may also come into play. Again, whether this will be considered as part of your DTI depends on the lender you’re working with. But there are ways to make this process easier.

If the home you intend to buy is already a rental home, try to get a copy of the existing lease agreement or rental history. Some lenders will apply 75% of the lease agreement as rental income to your total gross monthly income as a projection. 

If the home has never been rented before, or you are buying it vacant, some lenders will use the home’s appraised value to calculate the 75% as gross monthly income. It’s worth having this discussion with your chosen lender to look at your options. 

Don’t forget that you will also have to account for the home's operating expenses such as the mortgage, property taxes, insurance premiums and any HOA fees. 

How can I lower my debt-to-income ratio to buy a rental home?

Having a high debt-to-income ratio can affect you in a few ways. It will make it harder for you to make repayments and also work against you when it comes to finding a low interest rate with your preferred lender. While some lenders accept higher DTIs, they may also charge more for these loans. 

If your current DTI is too high to apply for an investment property, here are four ways to reduce your debt-to-income ratio:

The down payment will affect your ongoing mortgage repayments, so if your DTI is too high, it could pay to wait until you have a larger deposit. Draw up a household budget and look at where you could cut expenses to focus more cash on your down payment. Don’t refocus any of the money you make on repaying credit, because you want your debt to lower too. 

Instead of adding to your downpayment, you could also focus on reducing your high interest debts such as credit cards and loans. Smaller loans such as car loans or credit cards often have higher interest rates and repayments than student loans. Paying these will lower your back-end DTI and improve your ratio. You could also look at consolidating your debt or lowering your credit card interest by shopping around for a better deal. 

While you’re in the market for a mortgage, avoid the temptation of signing up for another credit card or adding any new debt if you’re consolidating loans. Even if you can afford the repayments or there’s an irresistible sign up deal, the amount can count against. Most lenders will consider the amount you’re approved for as a potential liability. 



Are there any ways you can add to your gross monthly income? Whether it’s asking for a pay rise or taking up a side hustle, any regular income can improve your DTI. If you already own a rental property, you consider ways to increase the value of the home and charge higher rates to improve your cash flow. 

Learn more: Belong helps homeowners optimize their rental income and financial security. See why thousands of US homeowners are ditching outdated Property Management in San Francisco, San Diego, Los Angeles, Tampa, Jacksonville, Concord, Berkeley, Orlando and more.

What is a debt-to-income ratio and how does it affect mortgage lending for buying a rental home? Find out how and why to calculate and reduce your DTI ratio

Financial Security for Rental Homeowners

Belong looked at which states have recorded the biggest rent growth in the first half of 2023 using data from Apartment List.

States that have seen the largest rent growth so far in 2023

After a post-pandemic surge, rental rate increases are slowing down, growing just 2.6% in the first seven months of 2023.

In the last five years, renters have felt the pressure on their budgets, but most of the pain has come since the pandemic. Although average rent prices fell for a few months at the onset of the pandemic as people left major cities, demand rebounded as the price of homes soared, putting homeownership out of reach for many. According to Apartment List, the overall median rent in the U.S. has risen 22.4% to $1,372 since March 2020.

Now that growth is tapering off, partly due to the completion of apartments that underwent construction during the COVID-19 pandemic. Through 2024, about 1 million multifamily rental units should hit the market, Apartment List's chief economist Igor Popov told The Washington Post, which may help meet some of the demand.

However, rents are still rising and generally remain high, creating affordability issues in many parts of the country, as inflation and the end of pandemic eviction protections continue to drag on renters' budgets.

Belong looked at which states have recorded the biggest rent growth in the first half of 2023 using data from Apartment List. The data represents the overall average monthly rent in these states from January to June 2023, compared to the average 2022 rent. Data was not available for Alaska, Maine, or Vermont.

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Even though there's plenty of demand for rentals in cities like Wichita, a lack of new development continues to put pressure on the market. That's partly due to high construction costs, which developers can't easily recoup through rents, as rents in the city are still relatively low, per KWCH.

Wichita's not the only city with high demand—Overland Park, a suburb of Kansas City, is one of the most popular rental markets in the country, according to a July 2023 RentCafe analysis, due to its affordability within the metro area.

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We don’t make money unless you do, making Belong the best choice for Oakland property management. Earn more with less stress.

Although statewide rents are still on the rise, prices in Northwest Arkansas have been increasing faster than the rest of the state. According to Axios, rents in this region have risen 27% since 2001.

Meanwhile, vacancy rates in the region's key towns of Rogers, Bentonville, Springdale, and Fayetteville are below 3%, which essentially means full occupancy—since some apartments will need to be offline for repairs, painting, or cleaning at any given time.

In Little Rock, in the central part of the state, a three-decade focus on commercial development has contributed to a lack of residential rental options, KATV reports. This has caused an increase in rental prices across the city.




In Iowa, both single-family homes and apartment rentals have experienced rate increases. In Des Moines, that makes for a tighter rental market for younger workers coming into the job market and people who have relocated from larger, more expensive cities, WHO-13 reports.

A report by the National Low Income Housing Coalition and Prosperity Indiana notes that to keep housing costs at no more than 30% of income—a figure financial experts use to determine how much someone should spend on housing and still have enough money to cover their other expenses—renters must earn an average of $19 an hour.

But renters' actual average wage is just $17.86 an hour. Renters in Indianapolis are feeling the squeeze, but more units coming on the market aren't causing rents to go down. New construction is commanding higher prices, and investors are buying older apartment complexes, renovating them, and raising the rents, Indiana University's Center for Real Estate Studies' Sara Coers told WRTV.

More Mississippians are opting to rent, as increases in home prices and interest rates have put homeownership out of reach for many. That's created more demand for rental units, WXXV reports.

Meanwhile, rental property owners are also facing higher costs, so they've increased rents to get a return on their investment. Demand for rentals along the Gulf Coast is so intense landlords are raising rents by hundreds of dollars, according to WLOX.

College towns are also not immune to higher prices, the Waller, Weeks and Johnson Rental Index notes. Renters are paying 20% more in Oxford, home to the University of Mississippi, because the city doesn't have enough inventory to meet demand.

While demand is a factor in rental increases, in Wisconsin, this demand is driven by people who want to live on their own, PBS Wisconsin reports. According to the state's Demographic Services Center, the average household size has dropped from 3.224 people in 1970 to 2.353 people in 2022, even though the population has grown by 1.53 million people during that same time.

Costs for building owners have also skyrocketed, who have to manage higher prices for financing, maintenance, repair, and even cleaning costs, which require them to raise rents to cover their investment.

Between 2018 and 2022, 294,000 people left the Chicago metro area, in part due to housing affordability, according to ABC News. However, the Chicago Tribune notes that a lack of rental housing keeps prices high and sparks bidding wars for apartments in popular neighborhoods.

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Unlock Hassle-Free Homeownership: How Rental Management Companies Work

In the ever-evolving world of real estate, owning rental properties can be a lucrative venture, offering a consistent stream of income and potential long-term financial growth. However, the intricate responsibilities associated with property management can quickly become overwhelming for homeowners. This is where rental management companies step in, providing their expertise and services to help rental homeowners navigate the complexities of property management. In this in-depth guide, we will explore the inner workings of rental management companies, shedding light on their role, benefits, and how they can transform your property investment experience.

A rental management company acts as a professional intermediary between property owners and tenants. These companies specialize in handling various aspects of property management, from marketing and tenant screening to rent collection and maintenance. By outsourcing these tasks to experts, rental homeowners can reclaim their time, reduce stress, and maximize returns on their investments.

2. What is the Role of Rental Management Companies?

Rental management companies play a multifaceted role to ensure a seamless property management process. Their primary function is to bridge the communication gap between homeowners and tenants, facilitating effective communication and ensuring a positive rental experience for both parties. Key responsibilities of rental management companies include:

Tenant Acquisition and Screening: Employing strategic marketing tactics to attract potential tenants and conducting rigorous screening to find the most suitable candidates for the property.


Property Marketing and Advertising: Utilizing diverse marketing channels to promote vacant properties, ensuring broad exposure to potential tenants.


Lease Agreements and Documentation: Crafting and executing legally sound lease agreements that outline terms and responsibilities for both parties.


Maintenance and Repairs: Coordinating property maintenance and repairs to ensure the property remains well-maintained and tenant concerns are addressed promptly.


Rent Collection and Financial Management: Managing rent collection, financial record-keeping, and disbursing payments to homeowners.


Tenant Relations and Conflict Resolution: Acting as intermediaries in tenant-owner interactions and professionally handling conflict resolution.

With Belong you can enjoy additional perks such as guaranteed rent, the ability to split payments, 24/7 support, and insurance all in one place! 

3. Key Benefits of Hiring a Rental Management Company 

Collaborating with a rental management company offers a host of advantages for rental homeowners:

Time Efficiency: Delegating day-to-day management tasks to experts enables homeowners to focus on personal and professional commitments.

Tenant Quality: Utilizing stringent tenant screening processes helps secure reliable and responsible tenants for your property.

Property Maintenance: Ensuring regular property maintenance and timely repairs enhances property value over time.

Legal Compliance: Staying informed about local and state rental laws ensures your property adheres to all necessary regulations.

Rent Collection Efficiency: Managing rent collection and financial operations guarantees a consistent and timely flow of income.

Discover the comprehensive role of rental management companies in simplifying property ownership. Explore tenant acquisition, property maintenance, legal expertise, and more.

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