What is normal wear and tear on a rental house vs. tenant damage? Find out how to assess for and protect your rental home from costly damages in between tenants

Normal Wear and Tear vs. Tenant Damage: How To Assess Your Rental Home

When a resident in your rental home vacates, you need to hone an essential skill: being able to decipher between regular wear and tear vs tenant damage. After a year or more, your house won’t be in the exact same condition as when you put it on the rental market. But what can come out of a security deposit and what do you need to pay for?

It’s time to play detective, only with less trench coats and more paint swatches.

What is normal wear and tear on a rental property?

Like a favorite pair of shoes, some things deteriorate with regular use. Your home is no different. Wear and tear describes what you would expect from regular use of a home. It doesn’t mean your residents didn’t show enough care, but there’s a reason why the term “lived in” is often used to describe something that is showing its age. 

Here are some examples of where to play Sherlock Holmes to consider what could be wear and tear vs damage:

Faded paint, minor nicks, and a few scuffs or scratches are all part of normal wear and tear. Then again, perhaps your resident went a bit overboard sticking things to the walls and have left tears in the paint. Or remnants of a mini picasso can be seen from a two year old’s efforts with the crayons. 

Wear and tear vs. tenant damage: Consider the property’s age and what is reasonable to expect from how long your residents have been in place. If there’s a few extra marks than before, this would be normal. If there’s holes or large tears in the paint — or a piece of furniture has visibly scraped off some drywall, you should ask to have it repaired or deduct the costs from the security deposit. 

Unauthorized paint and wallpaper is another contentious issue. Be sure to let your residents know that they need to seek permission before making alterations to the walls. Otherwise you can reasonably ask for them to be restored to their original condition, minus some standard wear and tear. 

Over time carpets lose their plushness, develop some snags, and bear the evidence of many accidental spills. Part of turning over a rental home involves having the carpets professionally cleaned, so waiting until this has been completed will show a true picture of whether carpet changes are due to general foot traffic or something else. Excessive stains or a suspiciously iron-shaped burn mark could indicate accidental damage.

You can’t charge a resident for foot traffic and reasonable wear of carpet or flooring. If you find evidence of serious stains such as oil, paint or pet urine that would require additional costs from a professional carpet cleaner to remove, you can definitely ask for residents to cover this cost or withhold this cost from a security deposit. 

For wooden flooring, again scuff marks would be seen as acceptable as would any warping or changing from climate conditions. But if a pet dog has been digging for bones in your living room this would be considered damage.  

The windows and frames are another thing that should be checked over. You can’t rent out your home again with broken windows, so repairs will need to be made quickly. If it appears that a window has cracked due to settling foundations, you can’t hold a resident responsible for damage. Rotted frames are another homeowner responsibility. 

Wear and tear vs. tenant damage: The occasional scratch, crack, or foggy seal is to be expected. Shattered glass from a friendly game of baseball is a definite sign of tenant damage. A pet cat using the patio door or window screens as a scratching post is another sign of damage that residents would be responsible for. 

Bathrooms can be a tricky one. It is your responsibility as the homeowner to ensure that essential facilities like plumbing, toilets and water heaters are well maintained and functioning. It should also be kept free of mold where possible. That means ensuring leaks don’t go unchecked and that any damage or aging pipes are repaired without delay. 

Wear and tear vs. tenant damage: Leaky faucets, a running toilet, or a clogged sink? Normal wear and tear. But an overflowing toilet from playing “will it flush?” — that’s deliberate misuse and you can charge for the plumber call out fee. 

The grout in tiles will also deteriorate over time and is considered wear and tear. But broken/smashed/missing tiles from excessive force is damage.  

How to track wear and tear vs. damage in a rental home

There are two key ways to really determine wear and tear vs. damage in a rental home:

Take photos before and after each new resident moves in

Take notes and extra photos during routine inspections

Routine inspections of your rental home aren’t about being ‘Big Brother’ and intruding on your residents. They’re essential to protecting your investment, by keeping tabs on any wear and tear on the property. It’s also an opportunity to connect with your residents to make sure they’re happy and are sticking to the conditions of the lease agreement. 

During rental inspections, you (or a representative such as Belong or a property manager), should be looking for damage, but also for wear-and-tear on the property that has the potential to become an issue if left unattended. 

Ask residents if they have noticed anything different, take written notes and also photos. When the home is vacant, these notes and photos will make it easier to spot the extent of wear and tear and whether or not anything could be seen as damage. Some counties also require you to have written evidence and invoices in order to claim any amount from the security deposit, even if you do the cleaning or repairs yourself. 

If your home is on Belong’s residential network, we schedule home visits on your behalf to connect with the residents, assess if anything needs fixing, and ensure there are no lease violations occurring. Inspection reports and information can be delivered directly to your smartphone via the Belong app. 

If we identify any maintenance issues or damage, we can provide you with a quote from one of 10,000+ vetted partners in our vendor network to take care of the job and even let you split the costs of any unexpected repairs in easy installments over the term of the lease. 

Does homeowners insurance cover accidental damage in a rental home?

Short answer: no. Many homeowners are surprised to discover that their homeowners insurance policy doesn’t actually cover them for anything once it's tenant-occupied! 

To be covered for damage while a resident that is renting your home, you need dedicated landlords insurance. All landlord policies vary, so you will need to speak to a provider regarding exactly what they cover. 

When you join the Belong network as a homeowner, you’ll be required to have a landlords insurance policy, either through our network or a provider of your choice. This ensures you are protected as a homeowner, covering the cost to repair or replace damaged property, especially if your resident was not at fault. 

Learn more about the difference between homeowners vs landlords insurance here.

Ready to let someone else take on the load of managing your rental home?

Simple protection of your asset (and ensuring you don’t have to play detective over scuffed wall paint!) is just one of the many ways Belong is making it easier than ever for individuals to achieve financial freedom with a rental home. 

Visit our homeowner's page to find out more about how our services are helping people to ditch property management in Seattle, San Francisco, San Diego, Los Angeles, Tampa, Orlando, Jacksonville, Miami and many more.

Legal mistakes are common for new landlords renting their homes. Avoid the headaches by getting ahead of 11 common legal mistakes and learn how to avoid them.

11 Legal Mistakes To Avoid As a Rental Homeowner

Renting out your home long-term is a great way to earn income, but it’s not your average business transaction. Governed by a host of varied and ever-changing laws, new landlords could find that simple missteps could land them in hot water. 

Whether you’re a self-managing landlord or have professional support, it’s a good idea to get ahead of these common legal mistakes so you can avoid them.  

11 Legal Mistakes New Landlords Make (and How to Avoid Them) 

Legal Mistake #1: Using outdated lease agreement templates

The temptation to cut costs and download a free lease agreement template online is understandable… but not always legal. This is because templates often take a ‘one size fits all approach’ and tenant-landlord laws don’t. 

Local ordinances are set by counties and change often. Legislation overrides any clauses in your lease agreement, which could leave you exposed if you’ve used a template that isn’t valid. This is also true if you try to sneak in a clause asking a tenant to accept terms that aren’t permissible in your county. 

Have your lease agreement drawn up by a professional who is up to date with both state legislation and any local ordinances, such as:

A modern property management alternative like Belong

Legal Mistake #2: Discriminatory rental marketing

If you’re writing a rental listing or asking to promote your home a certain way, beware that you could violate Fair Housing Laws. This is because the wording used when marketing a rental, running a home tour, or selecting an applicant could be discriminatory. 

For example, if you promote a rental as in a “good Christian neighborhood”, this would be discrimination on the grounds that it seeks to attract tenants of a particular faith (or exclude others).

When marketing your rental home, don’t focus on trying to attract your ideal resident. Stick to the hard facts that don’t favor any applicant over another such as:

Walkability to local cafes, shops and restaurants

If you’re looking for assurances in securing good residents and reliable income, sign up to Belong. It costs nothing to join, there’s no lock-in contracts and if you choose us to look after your home, we’ll do all the legwork to find the best residents – and even guarantee your rent. 

Read More: Understanding Fair Housing Laws When Renting Out Your Home

Legal Mistake #3: Discriminatory tenant selection

Tenant screening is another area where Fair Housing violations can occur. For example, using different income standards or higher application fees for a person based on their ethnicity, family size or race is discriminatory. 

If a rental applicant believes you have discriminated against them, you could face a lawsuit or hefty fines. As of 2024, a first offense faces fines of up to $25,597. This can climb as high as $127,983 for repeat violations.The court may also issue an injunction to prevent future violations. 

If you hire professional services, they should make tenant screening and compliance simple. If you are managing your own screening, it’s crucial that you document a standard check and apply it equally to everyone that applies. This creates a fair process and could support your case if you are ever accused of discrimination. 

Legal Mistake #4: Not documenting the home before move-in

Before your new residents move in, did you document every corner of the house? It’s a common mistake for new landlords to either forget to do this or not take enough specific details and photos in every room. This is risky because it leaves you open to disputes around damage and security deposits when a tenant moves out. 

Conduct a thorough inspection of your home or outsource it to someone like Belong or Inspectify. Take photos and detail the condition of every room, including rooms with no damage. Even the ceilings and inside wardrobes. Highlight any marks so you know what is pre-existing when it comes time to inspect the home on move-out. Remember that you are never permitted to keep a security deposit for “wear and tear” on the rental home or any breakages that happen as a result of ordinary use (e.g. carpet staining due to foot traffic).

Read More: Normal Wear and Tear vs. Tenant Damage: How To Assess Your Rental Home

Legal Mistake #5: Unlawful security deposit claims

Security deposit laws are changing in many counties. In some jurisdictions, the quality of your pre-lease inspection (as mentioned above) could also impact your claim on any security deposit. 

For example, new laws in Washington state won’t allow you to take a security deposit until you supply the new tenant with a written checklist that outlines the cleanliness of the rental home and any existing damage. This checklist will need to include descriptions of the condition and cleanliness of things like the walls, flooring, appliances and any other fixtures or furnishings. 

Both you and the tenant need to sign and date the checklist and you must provide them with a copy. If you don’t, the tenant could take legal action, including suing for the deposit amount plus costs. 

Find out what your local rules are on security deposits including caps on amounts and the claims process. Regardless of the law, it’s wise to document the condition of your home and any work done throughout the lease term. 

If you need to claim any of the deposit, make sure you have evidence of the costs to clean or repair any damage. Include quotes or invoices in a written statement, do not write “extra cleaning: $300” unless you have an invoice for this amount. If you intend to make repairs or clean yourself, document the time it took, along with a reasonable hourly rate in place of an invoice to use as evidence.



Read More: 5 New Laws Washington State Landlords Should Be Prepared For in 2024

Legal Mistake #6: Not taking steps to limit criminal activity 

Preventing crime is not your sole responsibility as a rental homeowner, but you do have a legal obligation to take “reasonable preventative measures” to keep the home secure. This means limiting opportunistic criminal activity where possible. 

Standard features that a secure home would be expected to have to prevent unauthorized access are reasonable. Think door deadbolts or changing the locks after evicting a nuisance/violent tenant.

Before renting your home, make sure the home is secure for new residents. And if a resident raises a safety concern, address it quickly and seriously. Failure to take action could be seen as negligent — such as not fixing a broken window, resulting in a home robbery.

Read More: Criminal Activities in Rentals: Can Landlords Be Held Responsible?

Legal Mistake #7: Not making timely repairs

A safe home is also up to code and livable. Ignoring or delaying tenant requests for repairs can lead to code violations, injuries, and even lawsuits. If you take too long, your residents may be able to legally withhold rent and arrange repairs themselves or move out without consequence. 

Get great residents, eviction support and guaranteed rent

Is it worth the cost of installing a security system for a rental property? See 4 benefits of home security for rentals and the dos and don’t for landlords.

The Dos and Don’ts of Home Security in a Rental Property

Home security is a wise investment when it comes to peace of mind for your own home, but what about a rental property? Is it worth the cost of installing a security system for a home you don’t live in? In this article, we explore the benefits of home security for rental homes and the dos and don’t for landlords considering their options.

4 benefits of adding home security to your rental home

1. Home security can protect your real estate investment

Systems that can deter theft or notify of an issue will help protect your asset both during and between lease agreements. It’s inevitable that your home will be empty from time to time — during pre-lease maintenance or renovations and when your home is on the rental market. Empty homes are a prime target for break ins and vandalism, so home security can help you keep watch.

When you do have tenants, the system will still be valuable in protecting your asset. Your residents don’t want anything stolen and you don’t want your property damaged — making security a win-win. 

2. You may be eligible for a discount on your insurance

A secure home reduces liability and most insurance companies reward this with a discount on premiums. Deadbolts, alarm systems and locking windows can all contribute to a reduction in your tenant’s premiums and may also reduce your own landlord’s insurance.

3. Home security could increase the rental value of your home

A secure home provides extra safety and peace of mind to potential residents and could attract a premium on your rental pricing. If you’re smart about your choices, this could cover the cost of installation and increase your return long term. Make sure monitoring services aren’t eating into your profits if tenants are not willing to foot the bill. 

4. Smart home monitoring could prevent serious issues or damage to your rental home

Smart home products can keep your home and residents safe by monitoring problems before they become emergencies, for example:

Smart smoke alarms that detect carbon monoxide levels can avoid toxic poisoning.

Water sensors that alert of leaks and flooding can avoid costly damage to homes.

Doorbells with video and/or motion sensors can notify of any unauthorized access to the property when it's vacant.

What to do when installing home security in a rental home

Buy reputable smart home products that residents can use

Smart home products that residents can enjoy themselves, such as a Ring or Nest video doorbell or smart smoke detector with carbon monoxide monitoring, offer the highest value to residents. These will make their life easier, while also offering some basic protection to your home. 

Make smart investments that increase your rental returns

Simple security upgrades such as deadbolts or smart locks, flood lights and window sensors can make a huge difference in peace of mind, without much outlay. Do your research before committing to anything too expensive and if you’re unsure if it will add value to your rental pricing, you can always ask the team at Belong. 

What not to do when installing home security in a rental home

Security cameras are a common feature of home security, capturing footage of any break ins and deterring intruders. But when installed in a rental home, you risk breaching the privacy of your residents. This is especially true for hidden cameras that aren’t easily visible. 

There is a legal requirement for tenants to have privacy and ‘quiet enjoyment’ of the home they rent, which means any camera that monitors the home could be considered a breach of your lease agreement or even tenant harassment. It goes without saying that you absolutely can’t have a camera in any private space such as a bedroom or bathroom, but even surveilling their coming-and-goings outside the home could be a breach of privacy without proper consent or with improper use of the footage. 

Don’t install any cameras without doing your research 

Generally, it’s perfectly legal for landlords to install a camera outside the home to monitor outdoor activity. However, it’s important to note that state legislation varies across the country regarding consent and hidden cameras. So if, for example, you decide to install one at the front door, do your homework first. You may need to switch it off during a tenancy or get their consent to have it there. 

Homeowners are increasingly being targeted by home security scams and fraud. Home home security scams include:

Door-to-door sales scams, conning you into a bad contract for things you didn’t want or making off with your money. 

Free equipment scams, where you are promised home security equipment for free, with huge long-term monitoring costs in the fine print or auto-renewal clauses.

Fake business scams, where fraudulent websites look to steal your details and/or money for home security systems.

Avoid being taken advantage of by sticking with reputable companies that you have researched, turning away salespeople at your door or cold-call phone calls, and not succumbing to high-pressure sales tactics. You should also read through any contract before signing.  

Don’t spend too much money on security monitoring services

While video surveillance and active monitoring may be the most secure way to protect a home, they can be expensive and may not get you the return on investment you’re looking for. 

For a rental home, avoid spending a huge amount of money on costly monitoring services or video surveillance that could violate privacy, such as inside the home. 

One of the best ways to ensure your home is safe and secure is to rent it out long-term to reliable, trustworthy people. People who will take care of your home like it's their own and stay longer, reducing vacancies and damage. 

Belong gives this peace of mind to homeowners by finding the best residents (with 66% less vacancy), giving them 24/7 access to a concierge to report any issues, and offering instant access to a network of over 10,000 vetted contractors to keep the home in good repair. 

Visit our homeowner's page to find out more about how our services are helping people to ditch property management in Seattle, Redmond, San Francisco, San Diego, Los Angeles, Tampa, Oakland, Orlando, Jacksonville, Miami and many more.

How much can a landlord increase rent in California? Or Texas? What are the CPI rates for 2024? We answer homeowner questions on rent increases across the US.

How Much Rent is Too Much? A Homeowner’s Guide To Rental Increases in Rent-Controlled Cities

Rent increases can be a touchy subject for homeowners and residents. With many homeowner expenses rising such as insurance and maintenance, it’s an important way to cover your cash flow. 

But not all rent increases are legal in every city or state. If you’re in a rent controlled state, you may have to check inflation rates to see how much you can ask residents to pay.

As soon as rent control is mentioned, debate rages. Rather than going into the pros and cons of rent stabilization, we’ll take a look at what you can and can’t do as a landlord in states and major cities within the Belong network including California, Washington state, Texas and Florida. 

Note: The information in this article was collected in June 2024 and is subject to change. Local ordinances vary between cities, please check with your local municipality to check the latest rules before initiating any rent increases. If you need help with pricing, Belong can help create accurate pricing that works toward your financial goals. 

Which states have rent control laws in 2024?


At a state level, Oregon and California are the only two states with rent control guidelines in place. Rent control policies also exist within the District of Columbia, New York, New Jersey, Maine, Maryland and Minnesota, but don’t apply statewide.  

More commonly, local ordinances are what caps or restricts rent increases. Even in states with rent stabilization, rules will vary between counties. It’s important to check with your local city before increasing rents, especially when there are new measures voted on every year.

How much can a landlord increase rent in California?

Local rates of inflation or the ‘Consumer Price Index’ (CPI) play a big role in determining acceptable rent increases for rent controlled units in California. 

As of June 2024, state law caps annual rent increases to whichever is lower of these two calculations:

CPI changes for rent increases in 2024 will come into effect from August 1, 2024 to July 31, 2025. That means if you are looking to increase rent in California, you will need to check your local rates of inflation for capped amounts. Here are some examples of CPI calculations for Southern California:

San Diego: 3.5% (+5% = 8.5% increase in rent for 2024)

Riverside: 4.2% (+5% = 9.2% increase in rent for 2024)

Imperial County: 3.8% (+5% = 8.8% increase in rent for 2024)

The 10% cap exists to limit increases when inflation is high. For example in 2022, San Diego’s inflation rate was 8.2%, making the CPI + 5% rate above 13%. In this year the lower 10% cap applied. Legal website Nolo lists Californian cities and their rent control measures to find your CPI amounts for 2024. 

The above calculations don’t apply to all rental properties, including most single-family homes and units built before a certain date. But this may not be the case next year. In November 2024, California will be voting on rent control measures to repeal the existing rulings. This would allow cities and counties to implement their own ordinances and change the exemptions. Although if you think you’ve heard this all before, it’s because this will be the third time this proposition has been on the ballot after being defeated twice. 


Related: California Rental Laws Are Changing in 2024: What Landlords Need To Know

How much can a landlord increase rent in the SF Bay Area?

In San Francisco, the rent increase percentages are calculated at 60% of the increase in inflation (CPI) in the Bay area. For rent-controlled units in San Francisco, the annual allowable rent increase between March 1 2024 - February 28, 2025 is 1.7%

Cross the bridge to the City of Oakland and allowable annual rent increases are 60% of the increase in inflation or 3% – whichever is lower. As of August 2024, rent-controlled units in Oakland will be allowed to increase rent by 2.3%. You may also defer increases and ‘bank’ them for up to 10 years. See the City of Oakland website for more information and how these restrictions may apply to a rent-controlled rental. 


How much can a landlord increase rent in Sacramento?

If your rental home is rent-controlled, Sacramento follows the state of California ruling, 5% of the current rent + CPI (local rate of inflation), capped at 10%. As of July 2024, the maximum rent increase is 8.8% unless you raise a petition to justify a larger increase. According to the City of Sacramento website, “landlords who increase the rent above the annual rent adjustment maximum and/or more than once every 12 months are subject to administrative penalties up to $25,000.”

How much can a landlord increase rent in Washington state?

Washington doesn’t have rent control laws, so you can apply any rent increase. The minimum notice period range forms 60 - 180 days and varies between cities. The City of Spokane passed a ruling to increase notice periods to 120 days for increases under 3% and 180 days for increases above 3%. This applies to both long-term and periodic leases and came into effect in June 2024. 

If you do increase the rent by more than 10% within 12 months, some cities and counties may require you to pay relocation assistance if your residents need to move out as a result of the increase. 

Related: 5 New Laws Washington State Landlords Should Be Prepared For in 2024

How much can a landlord increase rent in Seattle?

Seattle doesn’t restrict the amount of rental increases, but there are caveats. There are rules around increasing housing costs, which includes rent, parking, storage and any other periodic fees your residents pay you as the homeowner. 

The full list can be found on the City of Seattle website, but includes:

Homeowners can only increase housing costs when a lease is up for renewal or the rental agreement is month-to-month



You must provide residents with 180 days written notice of any increase in housing costs such as rent or fees



If you increase the rent by 10% or more within 12 months, you could be required to pay financial or relocation assistance (tenants must meet certain conditions to apply)

How much can a landlord increase rent in Texas?

There are no restrictions on rent increases in the state of Texas. If you’re on a fixed-term lease, you can legally raise the rent when it’s time for lease renewal. If the agreement is periodic, you can raise the rent any time provided you follow the notice period for your local area. 

Last year, House Bill 2127 came into effect to block local jurisdictions from introducing local ordinances without state approval, though this is in litigation with Houston, San Antonio and El Paso suing to block the legislation. 

Related: 5 Tips for Rental Success in the Lone Star State

How much can a landlord increase rent in Florida?

There are no restrictions on rent increases in the state of Florida and the local counties regulate notice required for increase. For example, until recently Miami-Dade County needed “fair notice to the tenant” in writing, but that was updated to a minimum of 60 days. 

House Bill 31 was filed last year which proposed that landlords not increase rent by more than 30% over a 12-month period for continuing residents as of July 2024, but this bill was not voted on by the committee to pass into law. 

Related: 3 Legal Changes and Bills Florida Landlords Should Be Prepared For in 2024

For any information on raising rent on your Belong-managed home in any areas outside of these states including Georgia, North Carolina, South Carolina and Utah, please contact your support team. 

Is my rental exempt from rent control laws?

Most rent control laws apply to apartments rather than single-family homes. If you own a single-family home or duplex as an individual, it’s likely that you will be exempt from rent control laws (check with your local municipality to confirm). If you manage your rental as an LLC or as part of a corporation or real estate investment trust (REIT), exemptions won’t apply. 

There are also common exemptions such as for newer housing (built within the last 10 - 15 years) or for those who are subsidized under government-sponsored programs. 

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Discover the true cost of tenant turnover when renewing or replacing residents as a self-managing landlord, hiring a property manager, or working with Belong.

Renew Or Replace: The True Costs Of Tenant Turnover For Rental Homeowners

It takes an investment of time and money to secure great residents in your rental home. When it comes time for them to leave, that process resets. Sometimes there are costs you can save on the next time around but there could be other unforeseen costs you didn’t expect. 

Prevention is better than the cure. Treating your residents well and minimizing their complaints can go a long way in keeping reliable rental income and stable cash flow. But when vacancies can’t be avoided, there are cost-efficient ways you can handle tenant turnover. 

In this guide, we’ll look at some of the FAQs around tenant turnover and how to handle it efficiently, based on how you manage your rental home. 

What’s the average cost of tenant turnover?

The cost to replace a resident in your rental home in the US can cost anywhere from $1,000 - $5,000. A recent report from Zego found that the average turnover cost in 2023 was $3,872. 

The costs a homeowner needs to prepare for when turning over a rental home can vary greatly. The biggest expense is the loss of rental income. You’ll be incurring costs without the income stream of rent until the home is occupied again. 

Then there are the hard costs of preparing the home for new residents. The age, condition and location of the rental home will influence costs, as well as how the home is managed. If your home is immaculate, well priced and in demand, the costs will be much lower than a home that needs repainting or extensive repair work. 

What turnover costs should I budget for as a self-managing landlord?

If you manage the home yourself, you will need to invest your own time and resources or pay contractors to assist with:

Move-out inspection to check for wear and tear or damages

Refund or claim against the vacating resident’s security deposit

Deep cleaning and any repairs needed (this may come out of a security deposit)

Maintenance and servicing or replacement of appliances as needed

Marketing costs including photography, videos and online listings

Preparing and signing a legal lease agreement

Administration and document keeping for tax purposes

Good documentation is key in keeping your costs down. Take photographs at every inspection to monitor for damages and have written invoices to make sure you can claim accurate repair and cleaning costs from the security deposit. Investing in good photography when the house is empty can also reduce your long-term marketing costs when reletting. 

If you have kept good records when preparing your home for the rental market, you also should face too many surprises in the costs you will incur. Plan to set aside this amount again as a budget to cover turnover. 

Related: How to Manage Accounting as a First-Time Landlord: 5 Best Ways

What turnover costs should I budget for with property management?

If you hire a property management company, you will likely need to pay a lease renewal fee if your tenants stay on. This should cost around $100 - $500 depending on the company you work with. Some also charge fees for inspections or to prepare any documents you need for tax. 

If your tenant moves out, be aware that there are extra fees that you may need to budget for. Costs and monthly inclusions vary between management companies but common charges include:

100% of the first month’s rent as a placement fee

Advertising costs, with some charging extra for video

Preparation of documentation for tax purposes

Fees for coordination of work orders and maintenance

50 - 100% of the last month’s rent as a lease up fee may be charged to include some of the above




Sometimes the fees mentioned above are wrapped up in what property managers call a ‘lease up fee’. A lease up fee could be a flat fee or anywhere from 50% - 100% of the last month’s rent to cover the costs of turnover. Be sure to check what is included to determine whether it’s an efficient way to turnover your rental home. 

Let’s say you’re offered a low property management rate of 6% on your rental home (e.g. $1,440 fee on a home rented at $2,000 per month/$24,000 per year). 

If a lease up fee is included at 50% of one month’s rent, this would add $1,000 to your bill. If the home was turned over after 12 months, the actual management fee would be 10.16%. If it turned over after 24 months, it would be 8.08%. 

This is one of the sneaky ways property management fees can hide true costs. When researching local property management companies we have seen some that charge for vacant homes or add-ons such as $150 for every walk-through or showing, $100 for redirecting mail and $200 per hour for any service not outlined in their fees. These can quickly add up at a time when you’re forgoing passive income, so be sure to read the fine print. 

How does Belong manage resident turnover more efficiently?

If your home is looked after by Belong, you won’t need to worry about nasty surprises when your lease is up. For starters, we take such good care of our residents that 82% renew their 1-year lease. And with no lease renewal fees, keeping great people in your home won’t cost you a cent. 

If it is time for your residents to move on, we will get to work on finding new people to love your home like their own. We won’t charge any setup fees, lease up fees, fees for advertising or taking photos/videos, inspection fees or charge for essential tax documentation. And our placement fee is just 60% of your first month’s rent, so you will start earning rental income straight away (which is then guaranteed for the lease). 

Let Belong take better care of your residents

With Belong, your rental home and residents are in good hands. Belong is a proptech company on a mission to fix long-term renting by focusing on modern innovation and services that support everyone.

Belong residents get access to 24/7 support, an app for easier maintenance requests and complaint resolution, access to renter’s insurance, and the benefits of a 10,000+ strong vendor network. It’s why Belong homes find residents quickly and keep them for longer. 

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



Disclaimer: We don’t enjoy using the words ‘tenant’ and ‘landlord’. We prefer to refer to members in our network as homeowners and residents, since we’re on a mission to upend and redefine the traditional landlord-tenant relationship. That said, for clarity on financial matters and to support those searching for traditional terms, we have used them in this article. This article should not be considered legal or financial advice, please consider your own personal circumstances before making any decisions on your rental home.

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