How much do property managers charge? And how do these fees compare to Belong's alternative full-service experience for rental property homeowners?

Property Management Fees: How Much Do Property Managers Charge?

Whether you’re a first time investor or simply tired of the headaches of self-managing your rental home, hiring a property manager or an alternative like Belong can go a long way in buying back your time and peace of mind. But how much do property managers charge? And how do the fees compare to a full-service experience like what Belong provides? 

To get the answers on the cost of property management and its alternatives, we’re going to break down the common costs that property managers charge and how we do things differently. 

Typical property management fees and common markups

Property management companies charge a percentage of the rent collected from your home. Most property management fees are in the range of 6 - 12% of your monthly rental price. So if you’re renting your home at $2,000 per month, you’re likely to pay between $120 - $240 a month. 

It sounds pretty straightforward, however there’s a huge discrepancy in what property management companies offer for that price. Many property managers that offer lower percentage rates make up their costs in other ways, so check the fine print before high-fiving yourself over getting a bargain. For example, a lower fee may mean that the property manager charges additional fees for a number of essential services such as marketing, inspections, lease renewals, and support if you need to evict a bad tenant. 

If your property manager fees are based on ‘rent due’, this also means they can continue to collect fees during vacancies or when tenants are late with their rent, so you’re paying fees even when you’re not earning any income. If the fee is based on ‘rent collected’, you are paying a fee out of what your tenants have paid — a much safer option for you and will motivate your property manager to handle issues quickly in order to get paid. Property management companies that charge vacancy fees to manage the home when empty will usually cost up to one month’s rent. 

Common property management fees additional to the monthly rate include:

Placement fee: Up to 100% of the first months rent

Communication after hours or during holiday periods: 25% surcharge on rates

Advertising fees for online listings: $150

There are also strict limitations on what many provide, especially when it comes to things like communication with your tenants or eviction support. Some property management companies will advertise that they offer free eviction support or charge a premium for eviction protection, only to limit the support to basic legal fees of around $500. That’s all well and good if things run smoothly, but additional legal support can quickly escalate costs, leaving homeowners without adequate financial coverage. 

The other thing to watch out for in the fine print is the fees for terminating a contract or including a commitment to sell. Some property management companies formalize this in their rental contracts, limiting your options if you choose to sell the home. 

Belong isn’t a traditional property management company, offering a fully transparent, people-first approach to managing rental homes that feels more like a hospitality experience. We look after our homeowners and residents so well that you won’t need to lift a finger. 

Belong charges a home management fee (unlock pricing for your city here) and placement fee (around 50 - 75% of the first month's rent).

Once you’ve calculated how much this will cost, that is all you’ll pay. We are proud to be full-service and don’t believe in surcharges or hiding fees. There's no setup costs and we don't sneak in surcharges like lease renewal fees or must-have inclusions like video marketing and eviction protection. 

Belong’s monthly management fee rate includes:

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

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

Modern-day marketing: Virtual tours and video marketing is included in listings

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

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

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

Eviction protection: Owners are shielded from 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.

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

We want all of our homeowners to be cash flow positive, so we don’t charge you when your home is vacant. We don’t lock you in a commitment to sell your home with us either.

What about a fixed property management fee?

It’s uncommon, but there are some property management companies that offer a fixed monthly rate structure, rather than a percentage of your rent. These offers typically exist in markets with below-average rates, so the cost tends to be similar to a percentage rate rather than any massive discount. 

Before accepting a fixed-fee, consider that there are likely still many add-ons to this cost and that your property manager may be less motivated to get the best price for your home without a financial incentive to do so. 

Are property management fees tax deductible? What about Belong’s fees?

In short, yes, property management fees for a rental property are tax-deductible. A property you don't use for yourself or family is seen as an investment or business, so the cost of managing the property is tax deductible.

This also means you can claim fees from Belong. Belong takes on all of the responsibility of looking after your home and residents, so you can include fees and maintenance from our professional tradespeople as a deduction in your tax return. 

Ready to make the switch to reimagined Property Management?

We've got you covered. 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.

We want to make sure you have everything you need to find the perfect rental home for you and your family so that your move is as smooth as possible.

Stop Looking For a Place to Rent and Find a Place to Belong

We know finding the right place to live is hard, so let us help.

We are Belong, and we know that renting is the best option for many people looking for a place to live. We want to make sure you have everything you need to find the perfect rental home for you and your family so that your move is as smooth as possible.

Renting might be better than buying a home

Renting is more affordable than ever before: You don't have to put down a big deposit or pay closing costs on a rental property—all of that is taken care of by your landlord (or in this case, Belong). And if you're still paying off student loans or other debts, renting can be a great way to save money while you focus on building up your credit score (so when it comes time to buy, you'll have an easier time getting approved).

You won't have to worry about maintenance: When it comes time for repairs or updates, we will take care of everything for you! That means less stress for you and more time to focus on what matters most: enjoying life with your family!

When you're looking for a rental home, it's easy to feel like you're in over your head. There are so many things you have to think about—and if you're like me, some of those things are way above your pay grade.

However, there is one thing that we have learned: renting is a great way to save money and live comfortably without having to take on the responsibility of purchasing a property.

You can't put a price on peace of mind—and if you live in an apartment or townhouse instead of owning a house, then you don't have to worry about all the maintenance that goes along with owning a home. You don't have to worry about fixing anything or keeping up with property taxes. You just enjoy your own space and relax whenever possible.

If this sounds appealing to you, check out our webpage! We'll help make renting easy by showing only properties where we know we can get you approved for rent.

If you're looking for a place to rent, you've probably already thought about buying. But did you know that renting can be a better choice?

When you buy a home, you make a lot of sacrifices. You can't move around as much, and you have to pay more taxes and insurance. Plus, there's always the chance that your home could lose value—and even drop by more than half its original value. Not good!

Sometimes is better because it gives you more freedom and flexibility. If you ever decide to move out of town or change jobs, it's much easier when all your stuff is already packed up in boxes or stored away. And if you do decide to sell? You won't have any regrets about what might have been had things gone differently!

If you're like most people, you dream of owning a home. It's that American Dream thing: owning something that is truly yours, where you can plant roots and make memories.

This all sounds great but when you start looking at houses, it became clear that renting was actually a better choice for me right now. Here are just a few reasons why renting is the way to go!

Did you know that the average homeowner spends $1,200 per month on their mortgage? That's $14,400 per year! If you factor in taxes and insurance costs as well, it gets even higher—$23,000 per year! And if you're planning on moving within five years or so (which most people do), then the equity you'll build up in your house may not cover the cost of selling it. So even if it does work out for you financially, the cost of moving and buying again is going to be pretty steep.

Belong is here to help find the perfect rental home for YOU!

If you are ready to find the place you Belong, just visit our website and let’s get started! 

Uncover the booming housing markets where institutional investors are buying the most investment and rental properties, for clues on where to buy property next.

10 Housing Markets Where Institutional Investors are Buying the Most

Belong examined metros where institutional investors have been the most prevalent, using data from real estate research firm ATTOM Data. 

10 housing markets where institutional investors are buying the most

Rising mortgage rates may keep some homebuyers out of the real estate market, but institutional investors are still diving in to build portfolios of properties nationwide.

Institutional investors are companies or other entities that purchase 10 or more properties in a single year. These buyers bought 1 in 15 single-family homes sold in the third quarter of 2022, or 6.7% of all home sales. While not as high as the 8.4% share recorded at the same time in 2021, it is slightly up from the second quarter in 2022.

Overall, home sellers made less profit in the third quarter, due to less difference between purchase and resale median home prices. Typical profit margins fell to about 55% as quarterly home prices dipped for the first time in nearly three years.

Despite that drop in prices, institutional investors are still buying homes in some markets. Belong analyzed where institutional investors were the most prevalent during the third quarter of 2022, using data from real estate research firm ATTOM Data. To be included, each metropolitan area—which includes a city and its surrounding towns—needed a population of 200,000 or more and must have recorded 50 or more home sales in the third quarter.

In general, metro areas seeing the most investment are smaller cities in the Sun Belt region, which gained popularity during the pandemic and continue to see interest from prospective buyers.

- Total institutional investor sales: 1,646

Indianapolis has been a seller's market in recent years, with home prices in Marion County rising 18% from 2020 to 2021. The lack of inventory has also put pressure on pricing, even though the city remains relatively affordable.

The metro area's steady population growth—6% from 2016 to 2021—makes it an attractive target for real estate investment. The area is experiencing high demand for multifamily housing, particularly in the suburbs where the property is more affordable. The suburbs also offer more room for popular amenities such as green space and swimming pools.

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- Total institutional investor sales: 3,604

From 2020 through July 2021, the Phoenix metro area added more than 100,000 people, which requires a lot of housing. During the pandemic, a tight supply of houses and high demand caused prices to skyrocket. Pair that with rising interest rates, and foreclosures are starting to rise again.

While the Phoenix area experienced a drop of 66% in foreclosure auction volume from the third quarter of 2019 to the third quarter of 2022, that metric turned around in mid-2022, with a 150% increase in foreclosure auctions between April and October, according to HousingWire. This increase signals an opportunity for investors.

- Total institutional investor sales: 646

In Lakeland, the real estate market is still strong. For the year ending in August 2022, median sales prices in Polk County rose 27.7% to $313,409.

Lakeland's suburbs are attractive, too—offering more spacious homes at more affordable prices. Some people are even looking farther out into Polk County, where builders are offering even more for even less. That has helped keep the metro area's affordability in check, as it's still cheaper to buy a home than it is to rent, according to ATTOM Data.

YOUR GUIDE TO RENTAL PROPERTY OWNERSHIP AND MANAGEMENT

Old-school property management is broken. Explore a comprehensive property management blog that covers tips, trends, and stories related to long-term renting, home renovation, and more so you can do it right.

- Total institutional investor sales: 1,973

The boom in Charlotte's real estate market has put many homes out of reach for even middle-income earners. Median house prices in September 2022 were $420,000, a nearly 54% increase from January 2020, according to UNC Charlotte's Childress Klein Center for Real Estate. This jump was partly fueled by a population boom that created 66,211 more households in the metro area by 2021.

Rents continue to rise throughout the region, with many cities experiencing double-digit increases year-over-year. In September 2022, the median rent for a one-bedroom apartment ranged from $1,010 in Gastonia to $1,430 in Charlotte.

- Total institutional investor sales: 318

Although Clarksville's housing market has been deemed "overvalued," sales were up nearly 8% year-over-year in June 2022, and inventory is still tight. Prices also continue to increase, up 30.5% in the metro region in the second quarter of 2022 compared to the same period in 2021. This was the highest price jump in the entire state, according to the Business and Economic Research Center at Middle Tennessee State University.

Clarksville's metro area saw 6% population growth from 2019 to 2021. Remote working and better high-speed internet access have spurred many new residents to move here from more expensive cities, and millennials jumping into the market continue to fuel demand.

- Total institutional investor sales: 5,188

Rising interest rates have contributed to a pause in Atlanta's real estate market. In October 2022, 4,415 homes sold, a 35% decrease year-over-year, according to First Multiple Listing Service data. This was the slowest sales month for the region since January 2020, and the slowest October since 2011.

Institutional investors still see Atlanta as a gem. In November 2022, JPMorgan announced a joint venture with Haven Realty Capital to invest in build-to-rent, single-family homes. The venture kicked off with a deal for 250 homes in three Atlanta metro area communities.

- Total institutional investor sales: 200

These regular and seasonal maintenance jobs are key to keeping your rental property profitable and in good shape all year.

The Annual Maintenance Checklist for Rental Homes in Florida

The Florida rental market has heated up like no other, making places like Miami and Tampa ideal locations to own an investment property. But a home in disrepair isn’t going to attract good residents or the right price for the market. Regular maintenance on a rental is key to keeping the home profitable and in good shape — identifying any issues or necessary repairs before they become costly headaches. 

While Florida really only experiences two seasons a year (hot and less hot), it’s not immune to wild weather. This annual maintenance calendar will give you an idea of the kind of repair, prevention and maintenance items you should cross off your list every season for a rental home in the Sunshine State. Some of these items you can ask your residents to manage, but some you will need to check for yourself in annual or quarterly inspections. Or, if your home is looked after by Belong, we can handle the lot — from speaking with the residents about issues to making repairs with our extensive network of professional contractors. 

Homeowners should also be aware of their obligations under Florida’s landlord-tenant statute to keep the property in good repair and ensure the home is habitable. If you fail to do so, your resident has the right to withhold rent, provided they issue you with a notice of their intent. You will be given seven-days notice to correct the defect/s and the resident can’t be forced to pay rent or threatened with eviction during this period. 

Spring Maintenance Checklist for Florida Rental Homes

Spring is the end of the dry season in Florida, which makes it the perfect time to tackle any maintenance issues and inspect for any leaks or cracks before the wet season begins. Servicing your HVAC or air conditioning unit and cleaning out filters is another must, before the mercury rises and contractors get busier (and more expensive!). 

It’s also a good time to do an annual inspection of smoke alarms, plus any fire extinguishers, CO detectors, and sprinklers to make sure they are working properly. 

Check the HVAC or air conditioning unit and clean filters before summer hits 

Inspect and test any fire safety systems such as fire extinguishers, CO detectors and sprinklers 

Mow the laws and remove any weeds as they start to appear

For homes with pools, have the water checked and cleaned to prepare for summer

Hose down any decks — if they need maintenance, now is a good time to reseal and treat for rot 

Check for leaks in the ceiling or any signs of water damage to repair before summer and fall rains set in and problems deepen 

Summer Maintenance for Florida Rental Homes

May to October is the wet season in Florida, making summer hot and humid. When the moisture and humidity rises, so too does the mold so be sure to make sure there’s no damp spots or moisture damage in the home and that rooms are being kept well ventilated. You can recommend that residents use basic moisture absorbers (such as DampRid) in dark areas that attract mold, like closets and laundry rooms.

If your home is prone to infestation, or your residents have concerns, now is the time to inspect for insects and rodents after the spring breeding season. 

Florida is also prone to severe storms and hurricanes, with the season peaking around August - September. You can check your address on FEMA’s Flood Map to find your flood zone category and risk of property damage during summer and fall. If you are at risk, check your insurance coverage and look at the National Flood Insurance Program. 

If your home has hurricane shutters installed, be sure to check their condition and make sure any electrical systems are functioning or hand-cranks are moving easily. If you don’t have any installed, now would be a great time to consider them to protect windows from flying debris. They also offer great insulation and protection from burglaries for your residents.  

Inspect and control any pest infestations such as insects and rodents

Check any supplied appliances such as refrigerators and washing machines

Check insurance coverage before hurricanes and storms set in 

Check property for any damage or loose fittings that could become an issue during storm season

Fall Maintenance for Florida Rental Homes

If your rental home has a lawn and yard, the big dose of sun and rain may have encouraged it to get a little unruly. Your trees may have also been damaged during summer storms. Fall in Florida is a good time to give gardens some love to ensure you maintain curb appeal and function. 

While you won’t see the traditional colors of fall the way you would in Vermont, there are Floridian trees that will drop their leaves and clog your gutters. If your home has one, make sure gutters are cleared as clogs can saturate your roof and cause leaks. 

Inspect roof and gutters, clearing out any debris 

Check bathroom caulk and grout for any potential issues and leaks before winter

Check garbage disposals as these get frequently clogged and lead to repair issues

Check insulation and drafts around windows and doors to fix before winter

Winter Maintenance Checklist for Florida Rental Homes

No need to worry about snow plows or frosty pipes, winters in Florida are the mildest in the US. However, as a homeowner you still have a responsibility to your residents to provide heat, especially hot water. Don’t neglect the water heater in your rental home — a yearly flush can prevent pipes from bursting and let you identify problems or leaks before they get worse. No hot running water gives residents cause to stop paying rent, an outcome far more expensive than maintenance. 

Florida rental owners take note: These regular and seasonal maintenance jobs are key to keeping your rental property profitable and in good shape all year.

The Annual Maintenance Checklist for Rental Homes in Washington State

With a diverse cultural scene, spectacular national parks, and a strong job market fuelled by big Seattle-based employers, life in Washington state is an enviable one. The Pacific Northwest is an attractive and liveable location and with Seattle’s renter population growing at twice the rate of the owner population, it’s a great place to own a rental property. 

But a home in disrepair isn’t going to attract good residents or the right price for the market. Regular maintenance on your Washington rental is key to keeping the home profitable and in good shape. 

This annual maintenance calendar will give you a general idea of the kind of repair and maintenance items you should cross off your list every year for a rental home in Seattle or the Greater Washington State. Staying on top of the condition of your home can save time and money in the long run, helping to identify any issues and necessary repairs before they become costly headaches. 

Some of these items you can ask your residents to look after for you, but some you will need to check for yourself in annual or quarterly inspections. Or, if your home is looked after by Belong, we can handle the lot — from speaking with the residents about issues to making repairs with our extensive network of contractors. 

Read More: Find Out Who Outshines the 7 Top-Rated Property Managers in Washington

Spring Maintenance Checklist for Seattle Rental Homes

When spring cleaning time hits, it’s also time to get on top of home maintenance jobs — which includes any rental homes you own. When spring blooms, gardens can get overgrown and pests might make themselves at home for breeding season. The best prevention for rodents is a clean yard with no trash near entry points, so now is a great time to trim trees and hedges, clear away any debris or rubbish and have a rental inspection to make sure your home is in good condition inside and out. 

While Washington state doesn’t get a huge amount of snowfall, these conditions have been on the rise in recent years, so it’s a good idea to check that any ice and heavy falls haven't caused issues for the home over winter. When snow starts to melt, water can seep into cracks and leak into your home, so check for any damage and seal any issues before they worsen. 

Mulch lawns as needed to improve water retention and minimize hose watering

Check the HVAC or air conditioning unit and clean filters before summer hits

Check the exterior of the house for any signs of damage or dirt buildup over winter — it might be a good time to give sidings a clean 

Check the roof and guttering for cracks and leaks

Ask residents to make sure food containers are sealed and trash cans are not too close to entrances in the home

Summer Maintenance for Seattle Rental Homes

Summer may not always clear the cloud in Seattle, but the city’s rainy reputation is put on hold with milder, dry conditions. If spring has been too wet, make summer the time you check your home for any cracks or leaks to repair before wet conditions make a comeback. 

Summer also brings out pests after the spring breeding season. Unfortunately, rats and mice love the Puget-Sound region, so if your home is prone to infestation, or your residents have concerns, now is the time to inspect for rodents and/or insects. 

If your property has a chimney, it will also need a regular checkup. Chimneys remove dangerous gasses from the fireplace or furnace to keep the air breathable, so it needs to be inspected before the weather cools and it gets used by residents. 

Operate automated sprinkler systems if your home has one

Check roof and gutters for cracks and leaks

Check for leaks in the ceiling or any signs of water damage to repair before fall and winter rains set in and problems deepen 

Check any chimneys and ensure they are clear and functioning

Fall Maintenance for Seattle Rental Homes

The rain is coming! While Seattle may not be the wettest city in the US, its reputation as ‘Rain City’ isn’t undeserved and November brings the heaviest falls. Combined with the falling leaves, this makes gutters your biggest priority for home maintenance in fall. If gutters get clogged and water can’t flow, it could saturate the roof and lead to deterioration or leaks. 

Worse still, if left unchecked for winter, water that pools along your roof and in gutters can freeze, creating ‘ice dams’. This can cause expensive dramas — think damaged gutters, torn roof shingles and leaks into your home. 

Mold and mildew is another issue that can creep in during winter and fall months. When residents keep homes locked up tight and crank the heater, the contrast of temperatures mixed with a lack of ventilation = mold and mildew. Remind residents to keep the home well ventilated, such as running exhaust fans in the bathroom during and after a hot shower and opening windows on clear days. You can also recommend that residents use basic moisture absorbers (such as DampRid) in dark areas that attract mold, like closets and laundry rooms. Not only will it save your home, it will save their clothes and shoes.  

Rake leaves/have residents rake leaves and maintain yard

Prune trees and plants of any heat damage from the summer heat 

Shut off any automatic sprinkler systems that have run through the summer

Seattle rental owners take note: These regular and seasonal maintenance jobs are key to keeping your rental property profitable and in good shape all year.

What every property manager needs to know about making sure their house is set up for a safe winter.

Winterizing Your Rental Properties: Do You Need To Do It?

Not so fun fact — at least, if you’re a landlord: every year, winter storms cause billions of dollars worth of damage to homes in America. In 2021, that total was over 15 billion. 

Sure, that number was inflated because of the blizzards that hit Texas in 2021. But there are two ways to look at that: you can write it off as a freak occurrence; or you can accept that the climate is changing on a global scale, and that it is increasingly difficult to predict what winter will hold for any and every biome.  So even if your property is located in a climate that typically doesn’t experience harsh winter weather, you can’t be sure the years to come will be typical. 

That’s why we encourage every homeowner to be familiar with the basics of home winterization. 

Many of the tasks associated with winterization you can accomplish on your own.  Some, though, take a level of expertise that your average homeowner does not possess. And considering how high the stakes are, it’s worth finding an expert who can help.

Benefits of Winterizing Your Rental Property

Efficient furnaces will still waste energy (and dollars!) if your home has air leaks. A well-maintained heating system, well-sealed windows and doors, and quality insulation won’t just keep your residents warm and toasty, they will also save on energy costs. 

Pipes are likely to freeze if weather dips below 20 degrees fahrenheit. Don’t wait until a cold front is predicted - by then it may be too late! 

Critters that would normally avoid being close to humans may creep closer as the weather grows cold. Spraying for bugs, sealing holes and air leaks, and cleaning your chimney can help avoid extra “guests” during the winter. 

If your rental home’s heater breaks during cold weather, you are likely legally obligated to get it repaired within 24 hours in most states. These maintenance emergencies are not only annoying and unsafe for your residents, they are also costly for you! An ounce of prevention is worth a pound of cure - schedule regular maintenance on furnace and HVAC systems before winter sets in.

Do I Really Need to Winterize My Rental Property?

Will these benefits of “winter proofing” apply to you? There are three main factors to consider when preparing for winter as a rental home owner: local climate, home vacancy, and landscaping. 

Even milder climates (i.e. Texas or California) may want to consider basic winterization, but locations with snow and ice should definitely expect to prepare their property for the harsher months. A good litmus test is if your residents will likely use heat for the majority of the winter. Even climates without snow can be cold enough to impact energy usage and plumbing. 

If you have water features in the landscaping

Ponds, waterfalls, pools, or any other water feature exposed to the elements should be winterized in most cases. A frozen pipe in a decorative landscaping feature can still cost you big bucks and plenty of headaches! 

This is especially relevant for short-term rentals (and one reason we suggest considering long-term rental properties instead). If you expect your property to be vacant for longer than 7 consecutive days over the winter, you should prioritize winterization. 

Think about it: all those leaves that have been falling off the trees have to end up somewhere. And those wet leaves can cause interior leaks and roof damage that occur because the water isn’t directed away from your house, and can end up getting behind shingles or window frames.

Not only can wind get through any cracks in your caulking, but heat can also get out. In both cases, the bottom line is your bottom line is negatively impacted: you have to pay more for heat to compensate. That’s one of the reasons we encourage self-managers to pay attention to the state of the caulk in their rental homes. 

You have to anticipate the damage winter storms can do to your property in general, not just the house itself.  Start with tree limbs – and entire trees – that are vulnerable to strong winds. Tree work can be expensive, so we advise you to get estimates that prioritize the trees closest to the house. Pay special attention to large trees that may require cables to hold together split trunks.

Make sure you move any outdoor furniture you have inside, or tie it down with bungee cords, or else they might become projectiles in windy conditions. The same goes for your grill. If you have a deck, you might want to give it an extra layer of sealant to protect it from the weather.  

While you’re in the backyard, be sure to shut off the water supply to hoses and water features, as well as drain them if they are full of water already. Even outdoor frozen pipes can be costly to repair and create a chain of plumbing issues. 

As your residents start running their furnace or space heaters, the risk fo carbon monoxide poisoning increases. A simple way to ensure they are kept safe is to annually check smoke and carbon monoxide alarms. 

This is an example of simple maintenance that you can do even if you’re not particularly “handy.” Most furnace manufacturers have helpful videos online showing you exactly how to check the status of the filters you have, and clean or replace them if needed.

Not only is it necessary in terms of making the house habitable during the colder months, but insulation can dramatically save on heating – as well as air-conditioning. The payback time can be as little as six months – or as long as three years, which really isn’t long at all.

In terms of immediate benefits, proper insulation is critical in terms of protecting your pipes. A little physics 101: in winter, water freezes, turning into ice; during that process, it expands. The added pressure can cause pipes to burst, which is not only a costly and time-consuming fix, it could cause damage to the property itself. 

It’s one of those situations where it doesn’t pay to cheap out: the stakes are so high that even if you could install the necessary insulation, we’d still recommend you call in someone to help. Because even a crack in a wall in an inopportune place is costing you real money.

Legislation has a ripple effect on the real estate markets. So which ballot initiatives passed and how will they impact landlords and real estate investors?

Which 2022 Ballot Initiatives Passed and How Could They Impact Homeowners?

We recently wrote about the 2022 Ballet Initiatives that could impact homeowners and the real estate market. This is because property availability, prices and investment potential are all influenced by local factors such as interest rates, economic cycles and legislation.

In a follow up to that article, here are the latest updates (current as of November 17, 2022) on what passed and what didn’t — and the potential impact on real estate investors.

1. Proposition 30: California’s Wealth Tax

California proposed a Wealth Tax to support clean air programs, generating funds for electric vehicle (EV) incentives and wildfire prevention. While wealth taxes aren’t often billed as for millionaires, they work in a similar way to property taxes, where taxes are based on the value of your assets. This include any residential or commercial property you own. This makes it one to watch for any states where you own — or even inherit — property. 

Status: Defeated, with 58% voting ‘no’ on Proposition 30

With the ballot defeated, this is no longer an immediate concern for homeowners and real estate investors in California. That doesn’t mean that wealth taxes aren’t still on the agenda across the country. In fact, voters in Massachusetts have passed a similar measure, approving a 4% surtax on annual income over $1 million to fund education, road infrastructure, and public transport.

It’s worth keeping an eye on this on a federal level too — France, Portugal and Spain are all countries with a ‘wealth tax’. 

King County in Washington State proposed a property tax levy to fund the acquisition and preservation of urban green spaces, natural areas, wildlife and salmon habitat, trails, river corridors, farmlands and forests. The conservation futures property tax level will be charged at a rate of $0.0625 per $1,000 of assessed value for collection in 2023. 

Status: Approved, with 69% voting yes on Proposition 1

For homeowners in Washington state, your property taxes will be affected by this measure from 2023. In terms of how it will affect the Washington real estate market, the conservation efforts that it funds will contribute to a healthy and prosperous community, keeping cities like Seattle desirable places to live. It will protect residents from issues such as excessive heat, poor air quality, or flooding — all of which can contribute to a loss of income for homeowners through reduced rental pricing or repairs to your investment home. 

3. Florida’s Flood Resistance Improvements

Florida’s Amendment 1, ‘Disregard Flood Resistance Improvements in Property Value Assessments Measure’, sought to incentivize homeowners to take proactive measures to protect their property from flooding, with the value of any improvements excluded from property tax evaluation. 

Status: Defeated, despite 57% voting yes. A supermajority of 60% was required for the approval of Amendment 1. 

Florida experiences the highest amount of property value losses due to flooding, which has an obvious impact on anyone investing in real estate in the area. While there won’t be an incentive on property taxes to take a proactive approach to improving your Florida property, it could pay off to do so anyway by minimizing the loss of value or cost of repairs should your property be in a flood zone. There are also resources available for anyone considering investing in Florida to check property addresses for the risk of flooding before purchasing. 

Additionally, in 2022-23, legislation from the Florida House will dedicate $100 million to mitigate the impacts of flooding on homes and businesses. 

Florida Amendment 3 sought to lessen the financial burden on public service workers looking to buy a home in Florida. The Additional Homestead Property Tax Exemption for Certain Public Service Workers Amendment would provide an additional tax exemption on $50,000 of assessed value on property owned by teachers, law enforcement officers, emergency medical personnel, active duty members of the military and Florida National Guard, and child welfare service employees.

Status: Defeated, despite 58% voting yes. A supermajority of 60% was required for the approval of Amendment 3. 

Home values and property taxes are increasing rapidly in Florida and the amendment sought to provide a financial break to essential workers who are supporting the community. While defeated by a single no vote from State Senator Bobby Powell, it was not because he didn’t support financial initiatives for essential workers. “I don't think that us putting another homestead exemption on the ballot alleviates or helps with the situation that we're currently facing. I am of the belief that the priority at this point should be to figure out how we can get police and firefighters and teachers into a home, whether it be first-time homebuyers, whatever it be, we need to figure out how to get them into homes,” said Powell.

For essential workers, this means new initiatives could be proposed in future to support home buying. For real estate investors, it could mean a shift such as a reduction of stock suitable for the rental market if more first home buyers enter the market. 

Other noteworthy ballot measures to watch

1. San Francisco’s Proposition M, the “Empty Homes Tax” 

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