25 Metros Where Renters Are The Most Overextended

Belong examined Census Bureau data to see which metros have renters who are putting the largest share of their income toward rent.

25 metros where renters are the most overextended

Anyone who has recently gone hunting for a new apartment to rent in a major city experiences the same headache. It seems like every year, rent prices go up while availability goes down.

Renters aren't just imagining this: From about 2010 to 2019, average rent for apartments across the U.S. has increased by around 2 to 5% annually, with a massive dip, followed by a surge, once the COVID-19 pandemic hit. From 2020 to 2022 alone, rent prices increased by 15%.

At the same time, wages have remained mostly stagnant. This has led to an affordability crisis: Many renters are familiar with the traditional recommendation of paying no more than 30% of a person's income in rent, but as prices go up while salaries stay the same, this may no longer be feasible for many.

Belong examined Census Bureau data to see where renters are putting the largest share of their income toward rent. Metros are ranked by the median gross rent as a percentage of household income. In the event of a tie, the share of renter-occupied homes in that metro were used.

Some areas have been hit harder than others. For instance, many of the listed cities are home to prominent universities and colleges, where there is high competition for limited units, causing a spike in rent.

Additionally, cities in the Sun Belt—including those in Florida, Texas, and other Southern states—experienced rent surges during the onset of the pandemic, when many workers left cities in colder climates to work remotely in sunnier areas. As a result, as many as 70% of apartments being built to fill demand in those areas are luxury units, with enviable amenities such as rooftop pools, on-premises spas, and coworking spaces.

Thankfully, the skyrocketing rates are thought to finally be cooling down a bit, at least in part due to increased housing availability. Nearly 1 million new apartments are currently being constructed across the country, popping up at the highest rate in 50 years. If this trend continues, renters may be able to let their wallets breathe a little more in the coming years.

Explore a comprehensive property management blog that covers tips, trends, and stories related to long-term renting, home renovation, and more.

- Median gross rent as a percentage of household income: 35.2%
 - Median rent: $849
 - Number of renter-occupied homes: 6,274 (40.3%) of all housing units.

- Median gross rent as a percentage of household income: 35.2%
 - Median rent: $812
 - Number of renter-occupied homes: 10,205 (42.2%) of all housing units.

- Median gross rent as a percentage of household income: 35.3%
 - Median rent: $1,086
 - Number of renter-occupied homes: 12,951 (20.4%) of all housing units.

- Median gross rent as a percentage of household income: 35.3%
 - Median rent: $1,052
 - Number of renter-occupied homes: 51,825 (40.2%) of all housing units.

- Median gross rent as a percentage of household income: 35.3%
 - Median rent: $1,003
 - Number of renter-occupied homes: 46,371 (47.7%) of all housing units.

- Median gross rent as a percentage of household income: 35.4%
 - Median rent: $1,043
 - Number of renter-occupied homes: 21,325 (36.9%) of all housing units.

- Median gross rent as a percentage of household income: 35.4%
 - Median rent: $840
 - Number of renter-occupied homes: 9,004 (40.2%) of all housing units.

- Median gross rent as a percentage of household income: 35.9%
 - Median rent: $827
 - Number of renter-occupied homes: 14,745 (47.3%) of all housing units.

- Median gross rent as a percentage of household income: 36.0%
 - Median rent: $1,218
 - Number of renter-occupied homes: 19,641 (45.8%) of all housing units.

- Median gross rent as a percentage of household income: 36.1%
 - Median rent: $1,724
 - Number of renter-occupied homes: 5,627 (28.8%) of all housing units.

25 metros where renters are the paying the most rent

Maximize Your Rental Income

Proven tactics for finding good residents fast and keeping them long-term

10 Proven Ways To Reduce Vacancies & Keep Great Rental Tenants Long-Term

Empty rental homes = empty pockets. To reduce vacancies and their strain on your rental cash flow, you need two things. Find good residents fast and keep them as long as possible.

There are many strategies and so-called shortcuts to increasing your rental cash flow. But if these increase vacancies, they can end up costing you more money in the long run. Cutting corners on maintenance, marketing and even property management could save you cash in the short-term, only to increase your vacancy rate.

Effective long-term renting requires a long-term mindset and strategy to match. In this guide, we’ll look at tried and tested ways to rent out your home faster — while keeping residents happy and ready to renew year after year. 

The key to getting your home loved quickly is to remove any barriers standing in the way of you and great tenants. That means investing time and effort into getting your home move-in ready, pricing it well, and having a robust vetting process ready to review applications right away. 

Get good tenants in your rental home with these 6 essential tips. 

Understand the current local market and value of your rental home

Asking for higher rent may seem like a quick way to increase your cash flow, but overpricing is a huge barrier to attracting applicants. Do your homework and adjust for seasonality and your local neighborhood. For the most accurate pricing, Belong PRO uses human smarts combined with clever algorithms and real-time demand to optimize your rental rate. 

Make strategic upgrades to your home to increase the value to residents


“We’ll fix that after a tenant moves in”, said the homeowner with an empty rental home. Putting off essential repairs, leaving aging appliances and presenting a home that isn’t move-in ready is no way to attract the best possible residents. Belong PRO sends an inspection team to every rental home to make sure everything is in the best shape before marketing. Doing this in the early stages ensures we find better residents faster and keeps them happier for longer. Our long-term mindset gets Belong an average of 29 qualified applications for every home listed.

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

Use attractive photography and detailed listings to generate interest



First impressions count. If your real estate photography is bad and your listing doesn’t sell the home in the best light, people won’t even bother walking through the front door. If you’re still using photos from 10-15 years ago, they’ll feel disappointed that the home doesn’t live up to what they saw online. 

Offer video or online tours to expand your applicant pool



Not everyone can make physical inspections. Adding video to your online listings can help widen your applicant pool to include people from out of town or who may be juggling shift work and child care responsibilities. This will mean getting some decent equipment like a tripod and lighting — or Belong PRO includes video in our online listings for no extra cost. 

List your home on 12-month terms during the summer peak season



Demand for long-term rentals peaks during the summer months. Listing your home during this spike in demand means your home will spend less time on the market and you can list at the highest price. 

If your rental home needs some improvements, aim to have them completed and ready to list between July-September. This will also mean if the resident decides to move after 12 months, you’ll be ready to list again at the next peak. 

Learn More: How To Achieve The Best Rent By Listing In Summer

Have good tenant screening practices in place to the streamline application process



If you’re screening and vetting tenants yourself as a self-managing landlord, you should take the time to create a process and set of criteria for reviewing every applicant. This will streamline the process, while also ensuring you don’t violate Fair Housing Laws.
Leaving vetting to the professionals is the fastest way to find qualified tenants. The Belong platform directly integrates with the most popular rental sites in the US including Zillow and Zumper. This can speed up the application process by attracting 30-50% more views for your rental home. Applications go straight into the Belong system, letting us contact and find the best applicant faster than a traditional property manager could. 

Learn more: Belong reduces vacancy times and costs for homeowners, with 66% less vacancy than competitors. See why thousands of US homeowners are ditching outdated Property Management in San Francisco, San Diego, Los Angeles, Tampa, Jacksonville, Concord, Berkeley, Orlando and more.

How to keep good tenants and maximize lease renewal rates

Once you’ve rented your home to trustworthy, reliable residents you want them to stay there. Renewing a 12 month lease eliminates your vacancy rate entirely and will avoid the process of marketing and tenant screening again. This is where a long-term mindset can pay off again. Here are four proven strategies for improving your lease renewal rates.

Keep your rental home in good condition



If you expect your residents to take good care of your home — you should too. Keeping a home comfortable and well maintained isn’t just your legal responsibility, it also means happier residents who are more likely to treat your home with the same respect. 

If you partner with Belong PRO, you’ll get instant access to our vendor network of over 10,000 contractors. You can subscribe to regular services such as lawn care, or even split the cost of repairs over the term of your lease.  

Learn More: Discover Belong PRO, the best alternative to Property Management in Seattle, Redmond, Oakland, and many more cities across California, Florida and Washington State.

Maintain a good relationship with tenants



How easy is it for your residents to get in touch with you or your property manager? Being slow to respond to questions or requests can be frustrating for residents, who may consider moving elsewhere. 

This is why Belong offers 24/7 concierge support to both homeowners and their residents. No question is too big or small, no time is inconvenient. It’s one of the many reasons why more than 73% of Belong residents renew their 12-month lease. 

Learn More: Good Tenant-Landlord Relationships: 6 Tips for Self-Managing Homeowners

Don’t wait until the last minute to ask about lease renewal



If your residents are planning to move out, it’s better to be informed so you can make plans for reletting. Get in touch with residents 60-90 days in advance and ask if they are interested in renewing their 12 month lease. If they are, great! If not, it gives you an opportunity to find out why and rectify the situation, or start planning on your pricing and marketing strategy when it’s time to put the home back on the rental market. 

When a lease is coming up for renewal, it’s a good idea to reevaluate the market and the value of your rental home. But, be mindful that large hikes are a quick way to send residents packing. If you have respectful residents who pay the rent on time, it’s worth taking their value into consideration before you adjust the price. Slower and more consistent yearly rent increases in line with inflation are easier to budget for than waiting for a few years and increasing by too much. 

Belong is simplifying the rental experience across the US and helping more homeowners reach their financial goals on their own terms. For people who want a completely hassle-free home management experience with guaranteed rent and 24/7 concierge service, check out Belong for homeowners.

Reduce rental vacancies and increase long-term lease renewals with 10 proven tactics for finding good tenants fast — and keeping them longer.

73% of Belong residents renew their 12-month lease

Bad property management is a liability for homeowners. Find out 7 red flags to avoid and what to do about difficult property management in a rental home.

Bad Property Management Is a Liability: Here's What To Do To Avoid It

Property management is difficult and time consuming. Which is exactly why people hire property management companies — to make life easier. In theory, that is. 

Not all home management operators are equal and the wrong property manager can end up creating more problems than they solve. If the company breaches their contract or tenant rights, you could end up being sued by tenants for their mismanagement. This makes getting the relationship right an all-important decision for your rental home. 

Learn what red flags to look out for — and how to fix things if you think you’ve hired the wrong property manager. 

Can I be held responsible for bad property management?

Poor property management can lead to legal battles, vacancies, and tenant claims — all of which can become costly headaches for homeowners.

How can I get out of a contract with a property management company?

Read the fine print and keep careful records of issues. Documentation can help prove a breach of contract and avoid costly termination fees.

Local city departments and the HUD can be contacted to report misconduct with your rental home. 

Managing a rental home is not always an easy and straightforward process. It’s like running a business — your home is the product and your customers are the residents who live there. Yet many property managers seem to forget this and the way they deal with tenants leaves a lot to be desired. 

But failing to please a paying resident is far from the biggest problem here. The risk of poor property management can include serious legal consequences. Whether you take the job on yourself or hire a less-than-diligent property management company, common ways that landlords can land themselves in hot water include:

Violating Federal Fair Housing laws and/or state regulations

Entering the property without adequate notice

Failing to disclose hazardous living conditions like mold issues and lead from paint



Failing to take action on poor behavior including noise complaints and criminal activity

Failing to repair damage quickly, affecting the health, safety or security of the tenants

Refusing to return the security deposit in the statutory time limit or making unauthorized deductions

Any of these violations could result in a legal battle and claims paid to the tenant could wind up being double the damages or more. 

What are the red flags I should look out for?

Frustratingly, the biggest warning signs don’t often appear until after you’ve hired a substandard property manager. But there are red flags that could signal a company that is less than trustworthy. 

If you come across any of these before signing a contract, keep researching your options. If you encounter them as a customer, keep records of their management to protect yourself if you need to end a contract. 

Sometimes companies take on more homes than they can handle, which leads to bad service. If your property manager is slow to respond to you or tenants are constantly emailing them about a maintenance issue — this is a red flag. Unhappy tenants are unlikely to renew their lease and leave your home with more vacancies. 

When hiring a property management company, you should know exactly what you will be paid in rent and when. Any property manager who can’t keep to this schedule is bad news. 

Late payments could signal that they don’t have adequate bookkeeping practices in place. Or they can’t get tenants to pay on time. We’ve even heard horror stories of companies that use rent payments to float their own expenses, leaving homeowners hanging. 

Get guaranteed rent with Belong: Rent paid every month, regardless of when your residents pay. See why thousands of US homeowners are ditching outdated Property Management in San Francisco, San Diego, Los Angeles, Tampa, Jacksonville, Concord, Berkeley, Orlando and more.

Before signing any contracts, it’s worth finding out how much property management services will really cost you. What services are covered in the monthly fee? It’s common for low-cost services to upcharge for services that you may assume are essential, such as inspections, rent collection, tenant communication, renewing a lease, and support during evictions. 

It’s easy to be persuaded by the promise of high rental yields. But over-quoting what you can earn on your home is a red flag. Not understanding your local market or pricing homes too high leads to higher vacancy rates, earning you nothing. 

One of the things that makes property management difficult and time consuming is that it’s not a 9-5 job. Life at home happens after hours, which is also when residents will need the most support. You don’t need to be on-call 24/7 when handling maintenance requests — but it helps. Problems need to be addressed quickly and someone should always be available in case of emergencies. 

Belong is available 24/7. Not just for handling maintenance requests and not someone who will pass on a message. Belong gives both homeowners and residents access to a dedicated concierge service that is available whenever you need them. 

One of the most difficult parts of managing a rental home is finding good tenants. This is what property management companies should do best, using tenant screening to verify employment, finances, references, and weed out potentially bad tenants. 

Before choosing a management company, find out what their history is like for finding (and keeping) residents. You can ask for their eviction rates and success rates to assess how they compare in the market. 

The only way to know your rental home is in good condition and residents are complying with their lease is through inspections. Without them, you could be in for a surprise when the residents move out. 

How to deal with a bad property management company

Avoid the Headaches of Bad Property Management

Austin, Dallas, Houston, San Antonio: Belong has arrived in Texas

Belong's Big Texas Launch: Welcome Austin, Dallas, Houston and San Antonio

They say everything is bigger in Texas, so it’s fitting that our next Belong PRO launch is our biggest yet! Today we’re rolling out the welcome mat to rental homes in Austin, Dallas/Fort Worth, Houston and San Antonio. 

So what does that mean for the thousands of Texans that own a rental home? It means there is finally a better alternative to outdated property management companies or going it alone without a financial safety net. 

It means Texas can take part in our vision for the future of the housing market. One where homes are in the hands of real people, not corporations. Where homeowners are supported to achieve their financial goals through real estate. Where people who rent long-term can find a sense of belonging in the houses they call home. 

It means guaranteed rent every month. Real support 24/7 for both you and your residents. Longer tenancies, less vacancies. No more hidden fees. Better cash flow management. It means managing your rental home on your own terms, knowing you have a partner that can help you achieve your financial goals sooner. 

The best alternative to property management in Texas

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

Our team inspect your rental home and help you get it move-in ready. We’ll use clever tech and real-time demand to find the right rental price. We’ll find and vet great people that will care for your home as you would. And we’ll treat them exceptionally well too, so that they stay longer, reducing vacancy.

Because we’re building modern and future-ready services, everything is handled right through your phone — from speaking with your dedicated concierge to managing rent, maintenance requests, financing and even insurance. Our app and services are always innovating to make sure everyone in our network receives a world-class experience. 

The mission of Belong is to create authentic belonging experiences, empowering residents to become homeowners and homeowners to become financially free. We’ve set about changing every aspect of renting that fails homeowners and residents (we’re even binning the terms landlord and tenant!). We’re challenging the status quo of property management by putting people first, enabled by best-in-class technology and services. 

Earn $1,000 by referring Texas homeowners to Belong

Know someone looking to rent out their home in Austin, Dallas, Houston or San Antonio? Learn about our referral program, where you can earn $1,000 by referring a qualified homeowner when they join the Belong PRO network.

Check out our local pages for more information or to get started:

Austin, Dallas, Houston, San Antonio: it’s time to meet Belong and find out how we’re changing renting and property management in Texas for good.

Secure Guaranteed Rent For Your Texas Home

Furnished vs. Unfurnished Rentals: Maximizing Your Rental Income

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

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

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


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


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



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


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


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

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

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

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


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


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



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


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


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



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

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


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


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


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


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

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

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

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

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


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

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

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

Ready to maximize your rental income?

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

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

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

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

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

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

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

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

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

- SFist, 11 Best SF Property Management Companies in 2023 

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

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

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

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

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

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



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



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



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



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



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



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



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



Eviction protection
Owners are shielded from up to $15,000 in legal costs if we ever place the wrong people.



Extensive vendor network
Belong connects homeowners with a vetted network of over 10,000 professionals for repairs and renovations.



Comprehensive insurance solutions
Belong offers insurance options that protect homeowners, their properties, and residents.



Lightning-fast listing responses
Belong directly integrates with top rental platforms such as Zillow and Zumper, getting you responses faster and vacancies filled. 


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

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

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

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

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

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

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

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

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

Sell the home and split the profits after expenses

Rent out the home and share the profits after expenses

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

How to handle inheriting a home with beneficiaries

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

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

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

What happens when you inherit a house with outstanding debts?

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

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

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

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

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

How to handle inheriting a home with a mortgage

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

What happens when you inherit a rental home?

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

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

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

How to handle inheriting a rental home: 

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

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

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

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