With reports of AirBnb hosts spending a fortune to remedy nightmares, is it time to switch your property from short-term vacation home to a long-term rental?

Mounting Problems with AirBnb: Should You Switch to a Long-Term Rental?

AirBnb guests have taken to Twitter and TikTok in recent months sharing horror stories and vowing to never vacation in a short-term rental again. Mounting fees, inconsistent host experiences, and even dangerous situations are among their reasons, all understandable. But what about the AirBnb hosts? 

It turns out that hosts around the world are souring on short-term rentals as well. A 2021 Bloomberg report revealed that AirBnb spends millions of dollars annually to make “nightmares” go away for guests and hosts alike. Meanwhile, local governments are fighting back against short-term rentals, which reduce the amount of available housing for full-time residents and raise rent and home prices for everyone. 

4 ways owning a short-term rental creates real problems

Short term rental problem #1: Taking on more work than you bargained for

Got a short term vacation rental? Congratulations, you now work in customer service! AirBnb hosts don’t get to sit back and collect passive income, they also take on the majority of communication with guests, are responsible for managing their own listing, setting and enforcing property rules, cleaning in between guests, and generally keeping guests happy. All too often, when something goes wrong, hosts are the ones left responsible for remedying the situation and dealing with angry (sometimes even dangerous) guests.

The payday that can come from a popular vacation rental becomes a lot less attractive when you factor in the number of hours you’ll spend working as a frontline customer service agent for your own property.

Short term rental problem #2: There’s a maze of convoluted tax laws and local regulations

NerdWallet’s Sam Kemmis reported earlier this year on the growing number of complaints from AirBnb hosts. Sam pointed out that in addition to the hospitality burdens placed on hosts, they also have legal obligations that can be difficult to understand and comply with. 

“Many local governments place the burden of tax collection on hosts, not Airbnb. A 2022 analysis by the National League of Cities, an advocacy organization composed of city, town and village leaders, estimated that 82% of cities require hosts to remit taxes themselves, while only 5% require the platform to do so on hosts’ behalf.”

Short term rental problem #3: The income is unpredictable

Even if everything goes well with your vacation rental, in most places vacation season is limited. You’re likely to experience booms and busts in your rental income, in contrast to long-term rentals, which are predictable and, in some cases even guaranteed income. 

Short term rental problem #4: Homeowners have limited protections

Even with all the liability insurance in the world, AirBnb hosts are opening themselves up to risk by allowing strangers to stay on their property. AirBnb’s insurance only covers limited property damages, and can’t give you back your time or your sanity if you’re faced with a squatter or criminal activity. Are you willing to take on that risk?

The good news is, switching your property from a short-term rental to a long-term rental is easy, especially if you work with a partner like Belong. Belong is a full-service residential network that takes care of your home and your residents for you, so those AirBnb headaches? Forget them.

Belong homeowners enjoy predictable, passive income with transparent management fees that often result in higher cash flow than even your best vacation rental months. 

The average Belong home is rented in under 17 days. That means you could say ‘bye-bye’ to AirBnb and ‘hello’ to guaranteed rent and passive income in just over two weeks.

Not sure if your home is an ideal long-term rental? Schedule a consultation with our team to discuss pricing and placement of your property so you can understand how much you’d earn with Belong. 

Mounting Problems with AirBnb: Should You Switch To Renting?

Uncover 6 home renovation or remodel projects that will add value to your home for years to come.

6 of the Best Home Remodeling Projects for Adding Value Over Time

Home renovation and remodeling projects are often done right before a home is put on the market to increase resale value. But what about properties that you intend to hang on to? For a long-term investment property, vacation rental, or even the enjoyment of your own home, this article uncovers six of the best home renovation projects that will add value to your home today and for years to come.

As the adage goes, “kitchens sell homes”. The reason kitchens are so important to anyone choosing a home — be it to buy or rent — is that this area is the heart and hub of the home. A central focus point and place where couples and families will gather every day. It’s also one of the spaces you need to use the most and they can date fast. An old kitchen with outdated appliances is a big turnoff for residents, which is why it’s an important place to start when considering projects that will add both short and long-term value to the home. 

If it’s your own residence you’re renovating, consider a major remodel to bring everything into the 21st century. An upgrade to luxury appliances can also see you get the most daily enjoyment of the kitchen space, while increasing the long-term value of the home. 

If this is an investment property or you intend to rent out your home one day, even a minor kitchen remodel can make your home immediately more attractive to potential residents. Fresh kitchens look stunning in marketing photos and impress during home tours. 

If your home is used as a vacation rental, remember that most families opt for a home rental over a hotel for the ease of having access to kitchen amenities while traveling and will be eyeing off these spaces in online listings. A new backsplash, updating the doors on the cabinetry and an appliance refresh are all ways to give kitchens modern appeal without breaking the bank. 

Think of the last time you browsed home listings for sale or rent. Is there anything more off putting than a dingy old bathroom? It doesn’t matter how clean they are, old bathrooms make a home look tired and stale. Chances are potential buyers and renters won’t even show up for a tour, so a refresh is a good way to add both immediate and long term value to any home. 

A bathroom remodel is said to increase a home’s value by between 10-40%, depending on the types of finishes and if you’re adding sought-after features such as a bathtub or extra toilet to the home. There’s also the potential for cost savings on your water bill with low-flow toilets and showerheads. 

Livability is another consideration when it comes to bathrooms within rented homes. Bathrooms are susceptible to mold and mildew issues from lack of ventilation, hot water supply issues from aging heaters, leaky faucets and plumbing problems. In the long term, these could add up to high repair costs or even breach of your tenancy agreement due to the warranty of habitability in many states. A bathroom remodel could be a better financial investment than patch jobs over wear and tear. 

3. Create functional and appealing outdoor space

When considering how to refresh a home, don’t neglect the outdoor space. Having a deck or patio for entertaining has always been appealing — but the pandemic also made it essential. With people spending more time at home than ever, the humble backyard, patio, or balcony has become a necessary place to unwind and even escape the home office. 

Outdoor spaces not only improve the livability and joy that you or your residents will get from the home, they can also attract a great return on investment long-term. Adding a deck for example, increases the living area of your home but the cost per square foot is considerably less than adding square footage to the primary building. 

The added value of a functional deck or yard doesn’t extend to swimming pools. While an enjoyable addition for a family home in sunny locations like California and Florida, a pool won’t add value to your home long-term. If you have a rental or vacation home, the upkeep and maintenance costs of installing a pool would likely cost you more than it’s worth and may turn away potential buyers when it’s time to sell. 

4. Increase the curb appeal with landscaping and exterior upgrades

Another great way to add value to your home immediately and long-term is to up the ‘wow factor’ on your curb appeal. A well-presented home will be eye catching in sales or rental marketing — and it feels good to arrive home to a beautiful space each day. 

Cost-effective and value-adding ideas include:

New landscape gardening or even just a pop of color with flowerbeds

A fresh color or refinish the exterior of the home

For some inspiration, see below for some inspiration from a recent renovation project in Burbank from the Belong Pros. Updating the front door, window color and the stucco on the exterior has given this home a stunningly modern transformation that will attract attention and value to the home for years to come. 

Poor insulation, drafty windows and old doors all contribute to uncomfortable homes and high energy costs. Investing in the energy efficiency of your home can add value immediately and reduce the cost to heat or cool your home.

Energy efficient fixes could be as simple as updating the windows and doors (which will also increase curb appeal and add a fresh look to the home) or the installation of modern heat pumps that can heat and cool homes efficiently. 

While energy efficiency may not add many zeros to the price of your home at sale — newer, efficient upgrades are more attractive to buyers and not replacing these items could decrease the value of the home by being outdated and expensive to operate. 

Read More: 7 Cost-Effective Ways To Make Your Rental Home Sustainable in 2023

You don’t need to invest in big new additions or remodels to give your home a value-boosting refresh. Check out this simple but effective interior renovation from the Belong Pros on a home in Oakland. By replacing aging light fixtures, removing old curtains, giving the walls a fresh coat of paint, tidying up the floors, and upgrading the kitchen cabinets including, RTA cabinets, the home has a completely refreshed look. 

Get the right remodel for your home, guaranteed

Neighborhood knowledge and expert know-how are the best ways to ensure any residential construction projects you take on will add value to your home. What drives the most value for residents in California won’t be the same as Seattle or Florida. To get personalized advice from a trusted local professional, Belong can connect you with a trusted professional from a vendor network of over 10,000 contractors. 

Belong is simplifying the rental experience and helping more homeowners reach their financial goals through real estate. Visit our homeowner's page to find out more about how our services are helping people to maximize their rental value and ditch property management in Seattle, Redmond, Oakland, San Francisco, San Diego, Los Angeles, Tampa, Orlando, Jacksonville, Miami and many more.

For an investment property, vacation rental, or your own home: Uncover 6 home renovation or remodel projects that will add value to your home for years to come.

All home remodel and renovations need a plan to avoid mistakes and budget blowouts. Here are 7 questions to ask to create your home remodeling project plan.

7 Questions That Will Help You Plan a Renovation Project or Remodel

As the saying goes, “measure twice, cut once”. It doesn’t matter if you’re after a small remodel or a major home addition, rushing into any construction project on your home can be a costly mistake. Creating a plan before you get started will keep your home renovation both on track and on budget. But where do you start? Hint: It’s not picking out the dream tile.

Before doing anything, here are 7 questions to ask to create your home remodeling project plan.

1. What is the main purpose of the home renovation or remodeling project?

Defining what you want out of a renovation is the best way to begin planning your home construction project.

It could be that you are looking to increase the value of your home, make the home more energy-efficient, or appeal to a broader range of residents before putting the home on the rental market. It could even be as simple as wanting a fresh look for your home. Whatever your reasons, defining them upfront will help when it comes to making decisions and staying on track.

If you want to increase the value of your home for example, you can plan upgrades that will get the highest return on investment. If you’re looking for sustainable, energy efficient solutions, you may be eligible for new tax credits and rebates. Defining the primary purpose of the remodel will help you focus your research, planning, and budget to stick to what is most important. It will also be helpful when it comes time to meet with contractors who can help make suggestions and bring this vision to life.

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

2. What budget can I afford to remodel my home?

This is an important one. Start crunching numbers early so you can have discussions with contractors around the cost of the project and materials. With a good plan in place, you should be able to work with your builder to develop a sensible budget. It’s easy for construction costs to blow out, especially in the current climate with global stock shortages and cost fluctuations.

Add 5% - 10% of your budget as a buffer for contingencies. This should cover the cost of inflation or potential issues that could arise to bring the property up to code.

3. Who will I need to hire to renovate my home?

Putting together a team for your home renovation is an essential part of your plan. A good contractor will help guide you through many of the questions you may have around budget, materials, timelines and permits. You will also need help with the design to ensure it is structurally sound and up to code.

If you're on the Belong PRO residential network, we can connect you to an extensive vendor network of over 10,000 professionals to help you get quotes fast. 

4. Do I need permits to start construction on my home?

Most cities need permits and building inspections by a local department before you can begin construction. This process can cause huge delays and frustration if you’re not prepared, so don’t leave anything to chance.

Some minor renovations won’t need a permit, such as painting, installing new flooring and countertops, or changing faucets. Any changes that alter the footprint of your home will. This may include decking, fences and even some plumbing and electrical work, so don’t leave it to chance and assume that you don’t need a building permit. If you’re installing a pool, you will likely need several permits, based on where your home is.

Take a trip to the nearest permit office to find out what your local municipality requires and the type of documentation you will need. If you’re unprepared, you could add significant delays to when you can start renovating your home.

5. Will the home need to be vacant during construction?

If you’re making modifications to your residential home, such as adding a new bathroom or sprucing up the exterior, you might be able to live with a bit of dust and inconvenience. But if you're taking on a major remodel or renovating a rental home, you will need to create a plan for the property to be vacant. This could include budgeting for a period without rental income — or even needing a rental home yourself for you and your family.

If you are staying in the home, make sure you have a plan for curious kids and pets who are at risk during a home renovation.

Like the residents of your home, you also need to consider the contents of your home and what you’ll do with them during the renovation. If you are remodeling a bathroom, you may simply need a temporary place for your toothbrush and daily skincare routine. If you’re ripping up floorboards, you are going to have to move furniture out and may need to budget for off-site storage. 

6. How will debris and rubbish be contained during construction?

Another thing to plan for is the inevitable cleanup when renovating your home. Protect nearby areas and soft furnishings with sheets or plastic covers to cut cleanup time.

You will also need to consider disposal of construction debris such as plasterboards, bricks, tiles, broken glass and pipes. In most cases, home construction and renovation projects will use a roll-off dumpster. Some municipalities require a permit to have the dumpster on-site, especially if there’s not enough room to accommodate it on your property.

If you are getting rid of aging appliances or salvageable materials such as doors and windows, look online to communities such as Buy Nothing or Nextdoor to see if anyone wants to use them for a more sustainable alternative to landfill.

7. How will the renovation or remodel be funded?

With your budget, permits, timeline and vacancy planned you will need to consider how you will be paying for the home renovation project. Options include:

Personal savings: If you have a small project or enough set aside, you could fund some or all of the project from a savings account.


Home equity: If you have enough equity in your home, you could redraw or borrow against this amount to invest back into the remodel of your home.


Mortgage refinancing: If you refinance your home, you could add more to put toward home improvements while also negotiating a better rate or terms for your mortgage.


Split It: Belong homeowners are pre-approved for financing to assist with renovations and repairs on their home. If your home is being rented on the Belong network, you could even pay off the cost of improvements by spreading out payments to be deducted from your rental income over the period of the lease — leaving you with positive cash flow, while also increasing the value of your home. 


Green incentives: If you’re making the home more energy-efficient, you could qualify for incentives to help fund your renovation project. The Database of State Incentives for Renewables & Efficiency can help you find incentives and green loan policies by State or you may qualify for tax credits for certain upgrades.

Learn More: Is It Better To Finance a Renovation or Home Remodel or Pay in Cash?

Get the best price for your renovated rental home

If you've invested in getting a home up to scratch for the rental market, you'll want the best possible price to maximize your ROI. 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; Belong PRO. 

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.

Find out what to look for in a home renovation contractor plus discover 5 of the best home renovation contractors to consider for your next home remodel quote

5 Renovation Companies Every Homeowner Should Consider

There are 524,387 remodeling businesses in the US as of 2022. Of course, not all will provide the same level of service or have trusted contractors available that suit your home renovation. So how do you choose who to get a bid from? To help, we’ve narrowed down a selection of general contractors and builders that offer nationwide renovation and remodeling services.

What to look for in a home renovation contractor

We’ve all heard the horror stories, not all contractors are equal. Choosing the wrong general contractor to renovate your home could be a costly mistake that leaves you paying twice as much to repair poor workmanship or without your home essentials for months on end. 

There’s no way of knowing for sure until the job has started if you’ve made the right choice — but we have compiled a list of essentials you should be looking for. It’s also a good idea to get 2-3 quotes completed for your project to compare costs and services available for peace of mind. Before signing any contracts, make sure your renovation company and/or contractors are:

Don’t take risks with an unlicensed tradesperson. Only ever work with professionals who are fully trained, licensed, bonded and insured. It’s important to note that bonded and insured are not the same thing. A contractor’s bond is a financial guarantee that the terms of a contract will be fulfilled. This protects all parties from financial loss if the contractor doesn’t follow through with the terms of the original agreement. It’s also not simple to obtain, so successfully having a bond is a good indication that there is high confidence in the business or tradesperson being able to execute on the contract. Insurance on the other hand is a paid-premium that covers claims and incidents if something goes wrong — such as worker’s compensation if an accident occurs on site. 

Does the business have good references and before/after photos that you can see from other local customers? Are their online reviews positive or negative? Before getting a quote from any contractor, check out their website and see what people are saying about them to get a feel for their reputation. If you have friends or neighbors who have renovated their home, ask if they have any recommendations. 

Hiring someone you trust will go a long way in protecting your home and finances. Contractors and businesses should be honest and upfront about timelines, costs, and what is workable. If they can’t provide this or you can’t find information on their licenses and work history, this is a red flag. 

When choosing a nationwide contractor, you will be relying on the services of a local representative or franchise owner. Do your due-diligence and ensure that the people working in your hometown have the same reputation as their parent company.

Most (but not all) nationwide renovation companies will have financing options available. Be sure to check you want to spread out payments over time and read the fine print before signing up with any associated financing company. 

Offer good-value warranties and guarantees

Most renovation companies will provide a warranty on workmanship and installation for one year. Be sure to find out the details and terms of any warranties or guarantees before assuming that work will be redone at no cost to you. If there is a dispute or it’s not deemed faulty, you may need to pay again for work to be fixed.

Note what the communication is like when you approach anyone for a quote. Are you greeted with professionalism and in a timely manner? Do they show up when they say they will? Make sure you deal with a company who handles communication well and interacts with integrity.  

5 of the best national home renovation companies

If you’re looking for the best national companies for remodels and home renovations, here is a list of 5 nationwide builders and contractors to consider. 

Please note: The following list features information taken from company websites and is accurate as at 21 September 2022. Please contact individual contractors to confirm details as they are subject to change. 

Who: Belong, the world's first residential network

Areas serviced: Currently serving major cities in California, Florida and Washington including Seattle, San Francisco, San Diego, Los Angeles, Tampa, Orlando, Jacksonville, Miami and many more.

Why you should consider them for your home renovation: If your home is on the rental market, you need to make sure you optimize your spend for maximum return on investment. With a focus on features renters love, Belong can connect you with our extensive vendor network of over 10,000 professionals. We make sure contractors are licensed, bonded and insured. They have a wealth of experience in all areas of home renovation and are available for projects of any size. 

Financing available: Yes — and Belong homeowners on the residential network are pre-approved for Split It, which provides the option to divide and deduct the contractor costs over the term of your rental lease agreement. 

Warranties: In addition to a one-year warranty on workmanship, if you're not completely delighted with the quality of our partner’s work, they will do it again at no cost. 

Who: Window World is a large national franchisee for exterior renovations

Areas serviced: National, with over 200 locations across the country

Why: Window World specializes in home exterior remodeling, installing energy-efficient replacement windows, exterior doors, siding, and more to increase the curb appeal of homes while reducing their carbon footprint. According to Qualified Remodeler rankings, this franchised remodeler is the largest in the nation, completing over 200,000 remodeling projects in 2020. 

Warranties: All replacement windows and patio doors come with a manufacturer’s lifetime limited warranty, good for as long as you own your home.

Who: Re-Bath, the nation's largest complete bathroom remodeling franchise (owned by Home Brands Group Holdings Inc). 

Areas serviced: National, with over 95 franchises across 41 states

Why: Established in 1978, Re-Bath is a bathroom remodeling and renovation company. By sticking to this single-focus speciality, they are faster than the industry average when it comes to turning around a beautiful new bathroom for homes. Some installations can be completed within 5 days — but be prepared to stick to Re-Bath’s manufactured products to get this kind of speedy service and certain warranties. 

Warranties: One-year warranty coverage on workmanship and installation of your bathroom remodeling project, plus additional coverage for manufactured products. 

Who: Mr Handyman is a home service Neighborly™ company

Areas serviced: Nationwide with 189 locations across the US and Canada

Why: Mr. Handyman is best known for home improvement and repairs and is said to have served almost 1million customers in homes across North America. As a franchised business, not every location offers full remodeling services, but most can take care of home upgrades and some will offer full service basement, bathroom, and kitchen remodeling. The company’s remodeling professionals have an average of 10 years’ experience and they guarantee their work for six months.   

Warranties: Mr Handyman’s parent company, Neighborly, offers the ‘Done Right Promise’, which states that if you believe the job wasn’t ‘done right’, you can contact the local franchise owner within 6 months and they will fix it at no additional cost. You can find the exclusions and terms here. 

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No one wants to spend an arm and a leg upgrading their rental property, but these simple upgrades can give your rental a refresh for less than $100.

Refreshing A Rental On A Budget: 6 Ideas That Cost Under $100

No one wants to spend an arm and a leg upgrading their rental property unless you can be assured of a good return, but these six simple upgrades can give your rental a refresh for less than $100.

Just Google “best price on'' anything – salad spinners, Rolexes, rubber bands, 21st-century whatever – and you’ll be overwhelmed. There’s something inherent in human nature that makes us bargain hunters.  

This is generally applicable to every person on the planet – even, if not especially, the wealthiest – but it’s especially true of landlords and people who are self-managing their own property. That’s because there’s a huge financial incentive to finding the right balance between quality and affordability. The more you spend on home improvements, the less money you have in your pocket; but also, the worse those improvements are, the sooner you have to renovate once more, which again cuts into your bottom line.

What’s more, smartly investing in home improvements can actually provide a short-term revenue upside, because you can charge more rent for a place when the extra expense is visible and alluring.

That’s why, in the best of times (which aren’t the times we currently live in), you take bids on big home improvement projects, and generally choose the cheapest option with the best reputation. And why you buy new appliances for your rental properties on Black Friday. Because the only thing you want to sacrifice less than quality is the quantity of dollars in your bank account.

The good news is that there’s a lot you can do – short of expensive remodeling – that can make a big difference in its marketability. 

In fact, for under a hundred dollars, there are a ton of savvy improvements you can make to your home — improvements that will make both your residents, and your checkbook, incredibly happy. Here are 6 of our favorites. 

We’ve seen the reaction to the sleek, new look that cool-looking faucets bring to bathrooms and kitchens in rental properties.  It’s truly a situation where a little goes a long way: this kitchen faucet from Aimadi looks like a million bucks, but will only run you $89.  And if you’re thinking that we’re leaving out the amount of money you’d spend getting a plumber to install the thing, you’ll be happy — and surprised — to know that changing out a faucet is a pretty simple task. Though of course, if you work with Belong PRO, we have an extensive network of vendors who are ready, willing, and more than able to deal with this kind of task.  And it spares you having to find the best YouTube video tutorial.

Another relatively inexpensive, quick, and easy-to-install home upgrade is adding some outdoor lighting to illuminate the driveway and/or any stone pathways at night. Trees also looking majestic with a glow from uplights.

Solar-powered LED options aren’t only a breeze to set up, they’re environmentally friendly, too, and require little to no maintenance. This set of 12 retails for $31.99, but we urge you to check the reviews because there is a big range of quality and many users are not satisfied.

Let’s face it: even in the most meticulously cleaned household, it’s only a matter of time before the grout starts gets grotty. No matter how hard you scrub it — no matter how much elbow grease you expend — it will never look entirely clean again. Even those fancy grout cleaners don’t always do the trick, and they will have no effect on the grout that gradually disappears over time, leaving a messy if not volcanic look.

There’s nothing more frustrating than that, in our opinion — when something is clean, but doesn’t look clean. That leaves two options – regrouting, which is not as complicated as it sounds.

Or if you’re not interested in going that far, we recommend recoloring and resealing your grout with a product like this. Of course you can opt for the traditional white, but consider going with a darker color; not only will the inevitable discoloration that builds up be less noticeable, but that pop of contrast looks more stylish, too. Dark grout with white subway tiles are very popular these days.

These beautiful ceiling medallions will spruce up the ceiling of any room with a little pre-war elegance. Easily installed with glue or screws they work with almost any pendant-style lighting fixture. Which is another thing you can update in style without breaking the bank, and give renters a lovely surprise when they look up.

Not only do they feel hip and urban – and industrial but they’re also highly useful; there’s little that bothers us more than having to dig around in our cabinets looking for a pot or pan, especially when we’re in the middle of cooking.  Easy to install and surprisingly affordable to purchase, they give any kitchen a shiny bright visual interest that feels clean and new.  What’s more, it makes the kitchen feel incredibly warm and useful; you can imagine yourself cooking and serving wonderful meals there.

It’s not something we generally fixate on, but a beautiful doorknob can have a powerful psychological effect; when the knob itself feels special, so too do the possibilities that lie behind that door.  On the other hand, when a doorknob is old, tarnished, and beat up, subconsciously we wonder how much the property owner cares about the property. Don’t be that property owner. For as little as 9 bucks you can buy a beautiful stylish doorknob that shows your residents how much you care about the house — and the people inside of it. This is especially the front door. Try one of these gracious door knockers to add even more style to a first impression.

Finding help with renovating or repairing a rental property

Though these small upgrades will have a profound impact, you can likely perform these tasks yourself. But for bigger renovations, which are too much for you to take on by yourself, we know who can help. With a vendor network of over 10,000 contractors, 24/7 concierge support and an innovative approach to property management, Belong stops at nothing to satisfy our homeowners.  

Should you flip a fixer upper or renovate to rent? If the idea of taking on the workload of renovating and managing a home puts you off, we have the solution.

Renovate to Rent: How to Flip a Fixer Upper Into Passive Income

Aging fixer-uppers, home foreclosures and neglected run-down homes have long been the domain for house flippers (and HGTV series). Problem homes are snapped up for a bargain and sold immediately after renovation (or ‘flipped) in hope of a quick profit. But what about those playing the long game? Passive income could be more beneficial for your financial situation in the long term and less risky than a quick-flip. 

In this article, we’ll show you how to turn a fixer upper into passive income without taking on a huge amount of extra work and responsibility — by letting Belong manage the entire project end-to-end. 

Homes that need extra love sell for below-market rates, because more money is needed to bring them up to a livable standard. Once ready, if you don’t plan to live in the home, it can be sold immediately (flipped) or held on to for the rental market. 

Flipping is not technically an investment strategy. This is considered active income and you will need to work hard for this income as you prepare the house for immediate sale. This can provide a faster return, but the costs and capital gains taxes can be high. There are also high risks involved as costs can mount quickly and the market may dip while you’re under construction. 

Renovating to rent on the other hand, is an investment strategy as you will be holding on to the home long-term for the purpose of generating passive income. Investing in renovation and holding on to a property for the rental market can pay off in many ways:

A recently-renovated home can attract a higher rental price and your pick of quality residents to care for the home

You will enjoy tax benefits while you hold an investment property, if it’s rented by long-term residents (not family or used as a short-term vacation rental)



A well-managed home can generate passive income for years to come

The home should increase in value over time and you can benefit from appreciation, because renting allows you to hold on until the right time to sell, further adding to your return on investment

How to earn passive income from buying a fixer upper to rent

Before you get too excited about a bargain property, there are two essentials you’ll need to cover off if you want to enjoy passive income and turn a fixer upper into a solid real estate investment: 

1. You need expert advice from at least one qualified and experienced contractor about the costs of a renovation to bring the home up to code and attract a strong rental price for the location. 

2. The home will need to be well-managed so that you don’t have long vacancies and won’t need to lift a finger to generate rental income. From marketing to placing the right tenants and collecting rent, there’s a lot of work behind the scenes that needs to happen to achieve truly passive income. 

This is where Belong can help in a way no other builder or property management company can. Before we market a home, we conduct a thorough home inspection to assess for the structural integrity and safety of the home, as well as the functionality that will attract long-term renters. And because we specialize in homes for the rental market, we know exactly what your property needs to attract an optimized price for your home’s location. 

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.

Learn more about passive income and peace of mind with Belong

If you’re considering a ‘renovate to rent’ strategy, Belong can help. From expert advice to placing long-term residents, and keeping your home well-maintained — we handle it all.

Why? Because Belong wants to bring real estate investment back into the hands of individual investors, helping homeowners to achieve financial freedom. 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.

Over 40m people carry student debt, so what are the practical impacts of forgiving this debt? How will student loan forgiveness affect the real estate market?

How Will Student Loan Forgiveness Affect the Real Estate Market?

Student loan forgiveness isn’t just an idealistic concept anymore — it’s becoming a reality for millions of Americans. 

Soon, applications will open to forgive as much as $20,000 of student debt per borrower. It’s a bold plan, and one that’s inspired much speculation on how it will impact the broader economy. 

Homeowners, especially property investors, are certainly watching. Over 40 million people carry student debt, second only to mortgage debt. What are the practical impacts of changing so many people’s financial standing in this way — and how will it affect the housing market? 

Some homeowners might be eagerly awaiting a rush of newly debt-free buyers, while others might see it as an unjustifiable cost, not worth its potential benefits to the economy. 

It’s a complex question, but let’s try to unpack it. How are student loan forgiveness and the housing market related? 

Currently, the Biden administration plans to forgive up to $10,000 of student debt per borrower, and up to $20,000 for Pell Grant recipients. Loan forgiveness will be available to borrowers whose yearly income is under $125,000. 

In the United States, most people with student debt owe around $25,000. By various estimates, forgiveness of $10,000 would completely erase the debt of 33% to 50% of these borrowers. 

And there’s more to the plan than just canceling debt. Thanks to new, income-based repayment standards, those with loans remaining after forgiveness will see their monthly payment cut in half.

Low-income households stand to benefit the most from student loan forgiveness. Nearly all Pell Grant recipients come from households earning under $60,000, and are significantly more likely to be Black, Hispanic or Indigenous. 

Together, these measures have the power to free up a significant amount of discretionary income — especially for Millennials, Gen Z, and people of color, who made up the largest proportion of Pell Grant recipients.

How debt, forgiveness, and the housing market are related

Two things are necessary to enter the housing market — an available down payment, and eligibility for a mortgage. 

Student loan debt can affect both qualifiers. In fact, student debt is one of the most commonly cited factors that hold people back from buying their first home. 

Monthly loan payments can eat up disposable income, making it harder to save up for a down payment. Lenders also consider applicants’ debt burden when considering them for a mortgage, with large loans seriously holding back what they’re able to qualify for. 

Eliminating or reducing that debt load could allow borrowers to save more money for a downpayment, as well as increase their purchasing power and get approved for a larger mortgage. 

In theory, that could release an influx of eager buyers into the housing market. That increased demand could drive home prices higher, creating what’s known as a seller’s market. 

Imminent housing market changes — what to expect? 

But in reality, of course, things are rarely so simple. In practice, it’s unclear if Biden’s plan would affect the housing market this dramatically — or indeed, create a noticeable effect at all. 

First of all, demand for housing already outstrips supply in much of the United States. While of course, markets vary by region, most homeowners are not struggling to sell. 

This reality is reflected in the rising problem of housing unaffordability in the US, with over half of Americans considering it a major problem in their community. 

Debt cancellation also doesn’t realistically translate into the immediate ability to buy a home — at least not for the majority of borrowers. 

Even in a best–case scenario, would-be homeowners would need time to save up a down payment with the newly freed-up funds. That means it would take at least 12 to 18 months before this new influx of buyers hit the market.  

In many cases, student loan forgiveness won’t even result in extra spending money. Most loan repayments have already been frozen for the last two years. Borrowers have likely allocated those funds elsewhere, such as to keep pace with rising gas and grocery prices. 

Nor is student debt the only factor keeping new buyers out for the market. For example, mortgage interest rates are sky-high right now — recently hitting their highest since the 2008 financial crisis.

Any changes in the housing market would take a while to become apparent after loan forgiveness is introduced. While there’s the potential to unleash major demand, in practice these effects could be limited. 

But overall, student loan forgiveness should be seen as a positive for homeowners. 

What does look fairly certain is that loan forgiveness will not outright harm the housing market, especially in active urban areas. There are already plenty of buyers looking for homes, and forgiveness would likely exaggerate forces already at play, rather than transforming the real estate market entirely. 

Depending on your region, owners may opt for a ‘wait and see’ approach, anticipating an influx of demand from newly debt-free buyers. In the meantime, renting out your home is a savvy move in many markets, allowing owners to generate passive income while their property rises in value. For a detailed outline of the factors to consider when determining whether to rent or sell, check out our e-book.

If you’re interested in renting out your home, but intimidated by the time and effort that goes into being a landlord, check out Belong. We’re a modern alternative to property management companies, making renting magical for homeowners and residents. 

Curious to see if your home qualifies? Reach out and schedule a consultation today.

Learn how to prepare your home for an inspection from potential tenants, from access to cleaning and clearing furniture.

Prepare For Your Inspection

Your home is entirely vacant of all personal items, furnishings, furniture, emptied closets, and construction materials. This is important because our inspectors need access to all areas of your home.

Water, Gas, Electricity are all up and running in order for our inspectors to complete tests throughout the home. 

Homes under construction or DYI projects make it difficult for our inspectors to understand the current state of the home, we want to make sure that your home is ready to be loved and taken care of by your upcoming residents.

There are a set of keys that we have either received earlier or will be provided to us at the time of inspection. Your homeowner growth associate can ensure that the keys are secured for your home's inspection, make sure to include all keys.

Putting your home on the rental market? Learn how to prepare your home for an inspection from potential tenants, from access to cleaning and clearing furniture.

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