Washington state rental housing laws are changing in 2024, here's 5 changes Washington state landlords need to know when renting out their home in 2024.

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

Washington state passed so much housing legislation in 2023 that it became dubbed “the year of housing” in the state. While most of these initiatives became law six months ago, it’s 2024 where homeowners will most feel their effect.  

Staying across legal changes in Washington state can help you avoid being on the wrong side of tenant-landlord laws in your jurisdiction. Many changes are taking place at a local level too, so what is accurate in Seattle may not apply in Snohomish or Spokane.  

From new rules on security deposits and rent increases to evictions, here are 5 things that landlords in the state of Washington need to be aware of in 2024. 

5 things Washington state landlords should know about in 2024

1. Security deposit laws have changed in Washington state

Legislation: Title 59 Landlord and tenant law

If you have residents due to move in or out in 2024, be aware that security deposit rules have changed under Washington state landlord-tenant laws.

Now when you collect a security deposit, you will need to give the new tenant 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:

Walls, paint and any wallpaper or coverings

Both you and the tenant will need to sign and date the agreement 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. 

If you have a tenant vacating in 2024, be aware of the following updates to security deposit regulations:

You have 30 days to return the security deposit or provide a written statement outlining why you need to keep money to repair or clean damage outside of regular wear and tear. This is an increase from 21 days. 

If you are claiming any of the deposit, you will need evidence of the costs to clean or repair any damage. Make sure you include quotes or invoices in your written statement, do not write “extra cleaning: $250” unless you have a cleaning invoice for this amount. 



If you intend to make repairs yourself, you must document time the work took, along with a reasonable hourly rate in place of an invoice to use as evidence. 



If you don’t have a written explanation of the expenses needed within 30 days, you lose your right to keep the deposit money. More time may only be granted in extenuating circumstances.  



You can not keep any of the 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).



Any deductions from the deposit must be due to negligence, carelessness or intentional destruction by the tenant or their guests.



Undocumented costs (such as minor cleaning or repairs from wear and tear) can not be reported to other landlords, tenant screening agencies or any consumer reporting agencies. 

2. ADUs will soon provide another opportunity for rental income 

Many localities in Washington state had restrictive laws on Accessory Dwelling Units (ADUs) before 2024. For example, an ADU may need to be attached to the primary dwelling in some cities. This limited any opportunity for homeowners to build a detached ADU for rental purposes. 

The City of Seattle shifted their rules to provide more diverse housing options and thanks to statewide reform, other governments need to follow suit. This change means that homeowners will no longer be required to live in the primary residence and that ADUs are allowed to be detached from the home. 

This gives homeowners more options to create a rental on their property. For example, if a couple wishes to downsize after their kids move out, they could build a detached ADU on their existing property and rent out the main home to create a stream of passive income in retirement. 

These revisions started in July 2023 and need to take place within six months of each GMA or cities required update period, so check with your local municipality for more information on where you stand in 2024.

3. Washington state eviction laws are changing

Legislation: Various including SB 5197 for remote hearings and local updates 

Statewide, in 2024 landlords and tenants will be able to request that their eviction hearing is held remotely. The courts will need to grant a request unless there is a reason for needing them to attend in person. 

At a city level, eviction laws are evolving and vary greatly, particularly in areas such as Seattle and Tacoma — so be sure to check with your local county before proceeding. For example, in some cities you are not permitted to carry out an eviction during the school year if any of your residents are students or educators. There are also restrictions around evictions during cold weather, preventing people from being unhoused between November 1 and April 1. 

Read More: 9 Homeowner Questions Answered On The Eviction Process in Washington State

4. The City of Tacoma enacted a tenant bill of rights

Legislation: Measure No. 1 or ‘Landlord Fairness Code Initiative’

Changes came into effect: 8 December 2023

In November 2023, a new ballot initiative was approved in the City of Tacoma by a razor-thin margin. Known as ‘Measure No. 1’, it created a ‘landlord fairness code’ that changes the requirements around rent increases, move-in costs, pet fees, late fees, evictions, relocation assistance and health and safety requirements. This is further to the Rental Housing Code, which was also updated in July 2023. You can learn more at the City of Tacoma website, but if you own a rental home in Tacoma, be aware that:

There are new notice requirements before increasing rent, with the first notice required between 210 and 180 days prior to an increase



If you enact a rent increase above 5% or more and your tenant can no longer afford to live in the home, you will be required to pay relocation assistance equivalent to 2-3x the monthly rent (depending on the size of the rent increase)



The total fee for all move-in costs cannot exceed one month’s rent



A pet deposit cannot exceed 25% of first months’ rent and must be refundable if no pet damage is found



New eviction measures as mentioned in the previous section of this article 

Tacoma is the latest city to introduce these measures after the City of Bellingham made changes to their rent increase and relocation assistance laws in March 2023. 

5. Statewide reforms are still on the table

Housing is still very much on the 2024 agenda in Washington state politics. A housing density bill has already passed and is heading to the Senate for consideration, allowing a shake up of zoning laws to allow more homeowners to split their lots.

Rent stabilization is another hot topic under consideration. Different from rent control, there are many groups pushing for rent increases to be more closely linked to inflation. At the time of writing (Jan 2024), House Bill 2114 is in committee to look at rent stabilization by limiting rent and fee increases, security deposits and measures similar to those recently introduced in cities like Seattle, Tacoma and Bellingham. 

Wherever your home is located in Washington state, be sure to double check for any updates to local laws before passing on rent increases or proceeding with an eviction. 

Belong guarantees rent and offers eviction assistance 

Don’t Spend 2024 Worrying About Property Management, Belong Instead!

What to consider and how to manage secure, positive cashflow to weigh up living off of income from your rental home

Can I Live Off Passive Income Earned From a Rental Home?

Is it possible to live off passive income from a rental property? Most people invest in real estate to achieve long-term financial goals and security. If you can cover your expenses and maintain positive cash flow, it is possible that your rental home (or homes) could bring a steady stream of passive income. 

In 2024, holding a single-family rental can be very profitable — particularly if you own the home outright, have inherited a home, or have considerable equity in the home with low overheads. As for whether you can live off the income of a rental property alone comes down to your personal finances and living situation. Not everyone requires the same amount of income to live a comfortable life and not all rental homes will bring in passive income after expenses.

To decide if can achieve passive income and live comfortably from your rental income alone, there are three things you need to do first:

Run the numbers on your living expenses and income needs

Determine your capacity for managing a rental home 

Find a home or optimize your rental income that can achieve these needs

You should also consult with a financial professional before making any big moves. But this article will break down the three steps listed above to help you do the initial math. 

Step 1: Determine how much income you need your rental home to produce

Do you have a firm grasp of your finances in 2024 and beyond? There’s no point trying to live off rental income if it means you’ll have to give up your lifestyle or will struggle to pay the bills. You’ll need a solid understanding of two sets of monthly expenses — one for your rental home and the other for you and your family. 

1. Calculate your monthly rental home expenses

Any mortgage repayments or debt such as equity loans

Any capital improvements or planned upgrades

Expenses of managing the home such as property management fees or regular travel, legal costs and contractor costs when you need help 

Many of these expenses can be claimed to reduce your tax liability. Any income earned outside your rental home will influence the tax bracket in which this is calculated. Items such as capital improvements or needing a major upgrade on the home can’t be claimed upfront, but need to be added to depreciation of the home. 

Consider the age and condition of the home when calculating these costs. Things like a roof repair or new hot water heater could dent your income if you don’t budget for them or have adequate insurance. 

2. Calculate your monthly personal expenses

Personal expenses you’ll need to consider include:

Transportation (car, insurance, and gas) 

Insurance (health insurance, rental property insurance, life insurance)

Any debt repayments and credit card interest

Ongoing subscription services (like TV streaming services or cable, any gym memberships, sports)

Travel expenses if you are planning trips or visiting friends and family

Don’t forget expenses that crop up less often that might not be on your radar every month. Things like renewing your license and registration or a passport or visa costs. If you visit family interstate every Christmas, have you calculated the cost of travel, along with any other future plans? 

The shortcut method for calculating this can be to use your current monthly take-home income as a starting point to work out your income needs. Be sure to account for any other sources of income that you will continue to have. 

The housing market is not static. You may have a vacant home between residents. Rents will rise and fall. Your home could be hit by a natural disaster and need to be vacant during repairs. Contingency planning is crucial to any budget — especially when projecting what you need to live on. 

When deciding if you can earn enough passive income from a rental home to live on, buffer in an emergency fund that can cover your expenses if your income falls. A good rule of thumb is 3 months worth of income, but anywhere between 3-12 is a good idea, depending on the level of risk you are willing to take on. This fund will give you a safety net for the unforeseen and limit how much debt you will need to take on such as relying on credit cards.

If you already have a cash flow-positive rental property, consider continuing to work or maintaining other income sources until you’ve built up an emergency fund. 

4. Don’t forget to plan for your retirement

How far away is retirement for you? Are you already on track or does selling property factor into when you can retire? It’s wise to speak to a financial advisor before making the leap into living off passive income, to ensure you are on track to fund your retirement. If you are still saving for retirement or hoping to retire early while living on your rental home passive income, you’ll need to factor this into your monthly expenses. 

Step 2: Determine your capacity for managing a rental home

When you own a rental home, it needs work and commitment to manage it effectively. Even if you wish to self-manage the home, there will still be time, effort, and costs associated with the daily operation of your rental home. 

This includes travel to and from the property, the cost of screening tenants, legal fees, accounting, rent collection and a whole host more. When it all adds up, the income is not exactly passive. In fact, if you do enough work on the management of your property business, you may be considered a real estate professional and taxed differently. Factor this into your budget planning. 

If that feels like too much work and you want a passive income stream, you will need to look at outsourcing the heavy lifting. This could be to a traditional property management company, which will cost you anywhere from 6-12% of your monthly rental income. But this isn’t the only cost you need to consider when hiring a property manager. Be wary that most charge hidden fees and add on extras that you may consider essentials, such as marketing, inspections and eviction assistance. 

The alternative is Belong. We are a tech-enabled company with a human heart. We want to keep rental homes in the hands of individuals, by making it easier to achieve financial freedom through real estate. We offer financial security such as guaranteed rent, home insurance products, 24/7 customer service for both homeowners and their residents and more. And we never charge hidden fees that eat into your cash flow. 

Step 3: Find rental properties that will allow you to live off passive income

Living off rental income? Your home needs to be in the right shape to hit those financial goals. 

If you already own a single-family home, you’re off to a head start. It’s likely you’ve already built equity in the property and if you’re lucky — locked in a low mortgage rate if you still owe money on the home. You can skip to the next step! 

If you need to break into the real estate investment market, you will need to identify properties aligned with your financial goals. You’ll want to look for a market where demand for rentals is increasing, but there are properties in your price range. You can also look for areas with stable job markets and economic growth.  

Can you live off of rental property income? Here's what to consider and how to manage secure, positive cash flow to weigh up living off of passive income alone.

Secure Your Financial Freedom in 2024 with Guaranteed Rent

Texas housing laws 2024: Some rules are changing, others are in litigation. Here's 4 laws that Texas landlords need to know when renting out their home in 2024.

What Texas Landlords Need To Know About Rental Housing Laws in 2024

New year, new laws for Texas! Housing legislation is always evolving. If you own a rental home in Texas, you’ll need to stay on top of shifting laws and regulations. While 2024 doesn’t usher in major changes, there are recent laws in place that are worth brushing up on — plus one to watch that is in the current litigation. 

Here’s a quick round-up of four housing changes Texas homeowners should be aware of in 2024. 

1. Texas homeowners are getting tax relief in 2024

In very welcome news for Texas homeowners, property taxes are going to be cheaper in 2024, thanks to Proposition 4 passing in November. By providing more funding for public schools, less tax needs to be collected from homeowners. At a cost of $18 billion, this is the largest cut to property taxes in Texas history. It will provide an average saving of $1,000 for homeowners in the state — a welcome boost to your rental cash flow from 2024. 

2. Homeowners Associations need to be more transparent about fines in 2024

Homeowners Associations or ‘HOAs’ can be tricky to navigate, especially when your home is on the rental market. There have been complaints about a lack of transparency for policies and fines, which has been addressed by new laws in Texas. As of January 1 2024, House Bill 614 requires Texas HOAS to explain and outline their rules and fines. Potential homeowners will also have better access to this information before buying a home so they know what they’re getting into. 

For rental homeowners and investors, this will make compliance easier by having a better understanding of fines relating to:

Individual misconduct from you or your residents

House Bill 1193 also came into effect in September 2023, prohibiting HOAS from discriminating against tenants based on their method of payment. The law comes after an HOA tried to discriminate against a resident in Denton County who was paying with a Section 8 housing voucher.

Read More: How To Rent Your Home and Stay HOA-Board Approved

3. Security deposit laws and rental fees are evolving

Many states such as California and Florida are beginning to put caps on rental security deposits and introduce the option to pay a fee instead of a security deposit. As of January 2024, there are no legal caps on upfront security deposits in Texas — but there is the option of a fee alternative.

Since 2021, Texas state law has permitted landlords to provide an option for a monthly fee. If you accept this option, you need to provide written notice to your resident that outlines the amounts (monthly fee vs security deposit) along with their right to pay a security deposit instead of a monthly fee. Even if they opt for the fee, they are within their rights to opt out at any time and pay a refundable security deposit instead. 

Under this law, you can also choose to use the fee to pay for a landlord's insurance premium, but you can’t make a profit on this fee by charging the tenant more. You also can’t charge tenants for any damage you claim on insurance. 

To avoid making this tricky decision, Belong PRO offers all rental residents the option to pay for their security deposit in monthly installments. This gives the flexibility of spreading upfront costs, while ensuring that our homeowners have the safety net of a traditional security deposit. 

Learn more about Belong PRO in Austin, Dallas/Fort Worth, Houston, and San Antonio.   

4. Local ordinances may soon be overridden in Texas

In Florida, more than 40 local ordinances became unenforceable due to a new law that allowed state legislators to override them. This put an end to many local renter protections, including Orange County’s tenant bill of rights. 

A similar change is in the air for Texas. Known as the “Death Star” bill, House Bill 2127 came into effect in September 2023, but it’s currently in litigation. Houston, San Antonio and El Paso have all sued to block the legislation. Local jurisdictions are already barred from introducing rent control measures, but this law would further dampen any new renter protections or moratoriums from being put in place without state approval. One to watch in 2024. 

Read More: 5 Predictions for the 2024 Rental Market and How To Prepare For Them

Belong guarantees rent and offers eviction protection 

Belong PRO homeowners don’t have to worry about changing regulations, as our team of experts does all the work for you and is available 24/7 to answer any questions.  

Belong homeowners earn guaranteed rent, paid to them each month even when residents are late to pay. And, in the unlikely event that residents must be evicted, Belong assists with the process so homeowners are never left stuck in the confusing legal system on their own.

Interested in learning more about Belong PRO services and availability in Texas? Check out one of our local pages below:

Disclaimer: This article is not intended as legal advice. Your local city is the best place to find information on local ordinances that apply to you and your rental property. To flip outdated property management on its head, we prefer to use the terms ‘homeowner and resident’ over ‘landlord and tenant’. But as this article discusses legislation, we have stuck to the old monikers. 

Get Predictable Returns in 2024 with Guaranteed Rent

Frequently asked questions about your inspection report proposal.

Questions about your Inspection Report?

You can expect to receive your report, on average, in 2 days.

What does my post inspection proposal contain?

Your post inspection proposal contains two reports.

The Improvement Report - We will walk you through recommended and required repairs aimed to get your home ready to be loved by the most qualified Resident.

The Pricing Report - We will walk you through our pricing strategy to get your home loved at the highest price possible for the market. 

Can we list the home and complete the repairs after?

One of the reasons why Belong is able to find residents within an average of 18-21 days, is because all of our homes show perfectly. The key to this is completing all the repairs ahead of showing your home. We are equally as eager to get your home listed as soon as possible but listing a home prior to it being ready can hurt your chances of getting your home loved and can lead to a stale listing.

I've received the report, what are the next steps?

Once you have received the report, your onboarding associate will reach out to you. If you have any questions at all you can schedule a time to speak with them. If not, you can click through the report and approve the work all within your account. Once you have approved the work, our team will get started immediately and keep you updated every step of the way to listing your home! 

We separate items in the repair report into required and recommended categories based on how likely it is going to affect your residents' experience in the home. We are firmly of the mindset that if we treat your residents right, they will look after your home better and stay longer. A lot of this comes down to how residents feel in your home. 

There is a rekeying on my improvement report, why?

Whenever we welcome a new home into our community or when a resident moves out, one of the first things we do is to rekey or replace the locks. You can never be too careful about who has copies of your keys. Rekeying ensure that no parties have unauthorized access to your home and gives your residents that added piece of mind that they are the only ones with access to your home.

What's the difference between spot clean and deep clean?

The spot clean is a shorter clean that happens before we take photos to list the home. The deep clean is a thorough cleaning that happens 1-3 days before your residents move in. We do this to ensure that your residents have a stellar move-in experience (Who wants to move into a dirty home?). This also establishes a clear understanding of the state of the home upon move in which will help determine any future security deposit deductions. 

I just cleaned my home, do I need to clean again?

Typically, yes. We strongly believe that deep cleaning a home is one of the most important factors to getting a home loved quickly. In some cases we can work with you. Feel free to discuss with your onboarding associate.

We understand that cashflow can be tricky for some of our Homeowners and so we want to be as flexible as possible with any payments. Upon approval of the work, we require a 20% up front payment in order to purchase materials and get started. The remaining amount can be paid upon completion or financed from your monthly rent payments up to 12 months. These options are available to help achieve any financial goals you may have and allow you to have truly passive income while caring for your home.

If you've had your property inspected by Belong for the rental market and have further questions, read this FAQ about your home inspection report proposal.

FAQ: We Answers Common Questions About Your Inspection Report

5 Predictions for the 2024 Rental Market: From an election year to slowed growth, see what changes 2024 will bring and their predicted impact on landlords

5 Predictions for the 2024 Rental Market and How To Prepare For Them

The housing market can be fickle and sensitive to change. While combing lists of the next big city can be great research, it's also important to consider current events and their potential impact on the rental market. 

So what change will 2024 bring to the rental market? Let's examine five current events and their predicted impact on homeowners and their residents.

1. Homeowners with a long-term mindset will be the winners in a renter's market

Many early reports for 2024 are suggesting that rental prices will soften in 2024. Zumper data shows that rental growth and big price hikes have already slowed. But before you lament a possible renters market, this doesn’t mean that homeowners will lose out in 2024. For starters, rents have shot up over the past few years and remain high even with slower growth.

For would-be homebuyers, there’s also little relief in sight that could see them out of renting in 2024. CNN reports that housing affordability is the worst it’s been in 40 years. Even if interest rates drop or prices soften in 2024, the last few years of incredible growth and inflation has put a lot of pressure on home deposit savings and mortgage costs. This is encouraging more Americans to rent for longer, opting instead to find a place they can call home long-term, without committing to buying. 

This can be great news for owners of rental homes who are looking for stability in their returns. Rather than riding the rollercoaster of rental market highs and lows, securing great long-term residents can provide predictable returns. It can also reduce the wear and tear on your home when people care for it as their own. Focus on the time of year you list and the livability of your property to increase your ROI and listing price in 2024. 

Read More: 6 Ways to Improve Your Rental Listing Price and ROI with Belong

2. The true cost of renting will become more transparent

In 2024, people will examine what they’re really paying for property management and rental fees. It’s not just the cost-of-living crisis and high inflation that is behind this. In July 2023, The White House called out the “junk fees” that plague the industry. The hidden costs charged by traditional property management companies impact homeowners and increase rents for their residents. 

Transparency is one of the many rental issues that Belong addresses with our top rated service, Belong PRO. But in 2024, we expect to see more companies following suit — either voluntarily or due to legislative requirements. Since President Biden brought the problem to light, seven states have already introduced bills or rules to crack down on hidden rental housing fees. Expect to see many more join them and real estate search platforms commit to showing the true cost of renting in the listed fees.

Before listing a rental home in 2024, make sure you’re on top of any local changes and be prepared to include all extra costs upfront in your price, especially if you’re charging application fees. 

3. Natural disasters and extreme weather will be a focus for more landlords

2023 was a year of extreme weather, smashing the records for expensive disasters. The cost of 28 major disasters was reportedly $92.9 billion dollars, without accounting for the costs of the East Coast storms in December. This has seen a dramatic rise in insurance premiums for some areas — two major insurers even stopped offering new policies in California. 

Most people rent out their homes to build financial security, which could be wiped out in the event of a disaster. To avoid major losses, owners of rental homes will need to evaluate their landlords insurance policies in 2024. This is also a time to create emergency or safety plans for your rental home if you don’t already have them in place. Be sure to consider fire and flood risk, even if your home is not in a traditional disaster zone.  

Read More: Creating a Rental Property Safety Plan

4. Property managers and landlords will need to tighten their cybersecurity

Cyberattacks are at an all time high and still rising. A 2023 report found that more data breaches hit US organizations in the first three quarters of 2023 than all of 2022 — or any prior year. 

Small property management businesses and self-managing landlords are often targets. A lack of sophisticated security measures plus a wealth of personal data is a dangerous combination. There’s also rent payment fraud and issues with using personal transaction platforms that aren’t designed for rent collection. 

If you don’t have a security and data plan in place, make it a priority for 2024. If you're going it alone, learn how to collect rent safely and brush up on FTC laws on how to dispose of private data on your residents. You can also reduce your risk by finding a tech-forward partner like Belong, that is built for the modern challenges of property management. 

Read More: Collecting Rent Safely: The Dos and Don'ts of Online Rent Payments

5. The election year will have the real estate markets on edge

2024 is an election year, which has a tendency to make real estate investors nervous. A recent survey by Investopedia found that 61% of real estate investors name the 2024 elections as their top concern for the year ahead. But the investment blog also notes that concerns could be overblown and that most election years bring positive returns.

If uncertainty is impacting your rental home finances in 2024, there are steps you can take to bring some stability, such as:

Making cost-effective improvements to your home to achieve a higher price and attract stable, longer-term residents

Listing your rental home in summer to achieve peak cash-flow

Using Belong’s Split It financing options to spread out the ongoing cost of items like insurance and maintenance into easy monthly installments 

Discover Belong PRO: Get great residents and guaranteed rent paid like clockwork. We’ll determine how to achieve your financial goals and then set out to help you achieve them with passive income. Learn more on our homeowners page. 

Don’t sweat the election year, changing regulations or shady fees. Belong is making renting lovable and predictable by offering stable guaranteed rent. And we’re doing it while providing a better way of living for the millions of Americans who rent. 

Working together, we can put people first and change what it means to rent a home. Belong can help you reach your financial goals, while also creating lasting, positive impact on innumerable lives for decades to come.

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

Single-family rentals are great investments, but is owning a rental property worth it? See the pros and cons of owning a rental home and becoming a landlord.

Is Owning a Rental Property Worth it? The Pros and Cons

Is owning a rental property worth it in 2024? It’s no secret that single-family homes represent a great investment opportunity. It’s why major corporations have concentrated on owning the housing supply, snapping up homes like crazy for years. 

It's also why Belong wants to see homes back in the hands of individuals. It’s time to level the playing field and give more people access to homes and the opportunity to build long-term wealth. It’s why we’re making renting lovable, helping more people to reach their financial goals on the rental market. 

But is owning a rental home worth it for you in 2024? This will depend on your personal circumstances, but to help you decide, this article will dig into the pros and cons of becoming a landlord. We’ll also take a look at how you can avoid or reduce some of the risks involved. 

There are many financial and tax benefits to owning a rental property, particularly if you lock in reliable long-term residents who can care for the home while it appreciates and generates equity and passive income.



Renting out a home can be a great financial opportunity for many homeowners, not just real estate investors. This is particularly true if you have inherited a home or have locked in a record-low interest rate but need to move. 



There are risks to owning rental property, many of which can be mitigated by choosing the right residents and partner to help you navigate the challenges such as unpaid rent, unexpected costs and high workload. 

Pros: 7 benefits of owning rental property

There’s a lot of reasons why you might have your sights set on owning an investment property for the rental market in 2024. Many see it as a way of achieving financial security. For others it’s an option for a home you don’t need to live in right now — such as an inheritance or when moving for work to rent elsewhere. Whatever your motivation, let’s start with the perks by looking at seven benefits of owning a rental home with long-term tenants.

1. Single-family rentals provide a strong investment with lower volatility  

Roofstock reports that single-family rentals (SFRs) have provided nearly identical returns to the stock market — but with far less volatility. This makes owning a rental property an attractive investment option to build or diversify your portfolio. 2024 is an election year, which does make some investors nervous, but historical research from Investopedia suggests that these fears could be unfounded, with positive returns recorded in the majority of election years. 

2. There are tax benefits to owning a rental home

A major perk of owning a rental property is that you can claim many of the home’s expenses as tax deductions. Mortgage interest, insurance costs, repairs and essential maintenance, property management or Belong fees are all common deductions. 

There are other tax strategies that landlords can take advantage of, too. Ask your accountant about eligible expenses, offsetting income with depreciation of the home, and deferring capital gains. 

3. Rental properties can earn passive income

Who doesn’t love the idea of earning money for no work? If you can rent out your home for more than it costs to run it, you will achieve positive cash flow and passive income. 

How easy is it to achieve passive income on a home relies on a few factors. For starters, how much equity you own in the home and the strength of the local rental market. If for example you have inherited a home or purchased the home 20 years ago and have considerable equity, you’re likely to achieve positive cash flow quite easily.

If you bought a home more recently or have a large mortgage and rising interest rates, you will need to look more closely at the math to determine if you can achieve passive income. 

4. Rental properties can appreciate over time 

Recent house prices have skyrocketed and many experts predict some softening of the market in 2024. This talk can make it tempting to cash-in and sell your house. But once you've sold, you stop benefiting from any future appreciation. And there is no one 'housing market', so this may not ring true for your location based on local factors. Renting out your home can be a great way to buy you time to watch the housing market and decide when it's the right time to sell for your area.

5. Renting out your home gives you flexibility to return 

When opportunity knocks, sometimes you need to leave a home you love. Job relocations, spending a year or two abroad, inheriting the family home — you may not be able to live in a home you own now, but that doesn’t mean you never will.  

2024 will see a continued rise in what's known as ‘accidental landlords’. That is, people who need to put their home on the rental market unexpectedly. Particularly if you locked in a record-low interest rate but need to move, you may choose to hold onto your home and continue building equity rather than selling up and fighting for a new home in a market with low inventory and high competition. 

If you can see yourself back in the home as your primary residence someday, renting to great tenants will give you the flexibility and time to decide what you want to do long-term. 

6. A well-loved rental is a well-kept home

Homes are made to be lived in. If you have reliable long term residents in place, they will keep the house clean and well-kept. Having the home occupied also means there is someone there to report any issues like leaks or storm damage and deter squatters or vandals from entering the home. 

Even if you can afford to leave your home vacant, remember that renting to good people lets you take advantage of the perks already mentioned (tax benefits, passive income) while having someone caring for and maintaining your home. 

This is why Belong goes above and beyond when it comes to finding and screening the right residents, placing people that will treat your home like their own. 

7. Renting gives you control over your asset 

Homes are a unique investment class because you have a lot more control over them than most investment options. You make the call on who manages your property and the people they place. You can’t discriminate against anyone on the basis of their background or family size, but you can make smart choices with effective screening of your applicants (or letting the professionals like Belong handle it for you). 

You can also make strategic upgrades to your home to attract a higher rental income while also improving the return on your investment when it comes time to sell. 

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