Read up on the pros and cons of buying a foreclosed property as a real estate investment.

Should I Buy A Foreclosed Home? Pros And Cons

You can find foreclosed homes in nearly every real estate market in the country, and buying a foreclosed home has become easier following the mid-2000s mortgage crisis. After the moratorium on foreclosures, in response to the COVID-19 pandemic, ended in July 2021, investors expected an increase in foreclosure. However, we’re still seeing a limited supply and significant competition. The greatest incentive in purchasing a foreclosed home is costs, but unpredictable timelines, repairs, and stiff competition may deter you from buying a foreclosed home. 

What your need to know about buying a foreclosed home 

There are several types of foreclosures: pre-foreclosure, short sale, sheriff’s sale, bank-owned, and government-owned. Every kind of foreclosure has unique characteristics, and the purchase process varies. Consider choosing a real estate agent who is familiar with the foreclosure process. They’ll be able to provide you with specific insight based on their experiences. 

When an owner can no longer make payments on their mortgage, the bank takes possession of the home. The bank usually sends a notice of default after 90 days of missed payments. Often, the homeowner has the opportunity to arrange for a new payment plan with the bank before the home is sold. If you’re buying a foreclosed home, you are purchasing the home from the bank, not the home's original owner.

Pre-foreclosure: Once the owner is in default on their mortgage, they are notified by the bank. If the homeowner can sell the property during the pre-foreclosure period, they can avoid the foreclosure process and some of the impacts on their credit history. 

Short sales: If a homeowner is enduring financial hardship, they may be able to sell their home in a short sale. The lender has to agree to accept less for the property than what the homeowner currently owes on their mortgage. Short sales can be lengthy because the bank has to respond and approve the deal. 

Sheriff’s sale: Sheriff’s sales are auctions held after homeowners default on their loans. These auctions are facilitated by local law enforcement, hence the name sheriff’s sale. In these auctions, the home is sold to the highest bidder. 

Bank-owned properties: If a home does not sell at auction, it becomes a real estate owner (REO) property. The mortgage lender, bank, or mortgage investor owns the property, and these types of properties are sometimes also called “bank-owned” homes.

Government-owned properties: Similar to REO properties, this type of home was initially purchased using an FHA or VA loan, both government-back loans. When these properties are foreclosed and do not sell at auction, they become government-owner properties. Then, they are sold by brokers who work on behalf of the agency which issued the mortgage. 

While all cash offers will provide your most significant advantage when buying a foreclosed home, various financing options are available for investment properties. Keep in mind that private lenders may be less inclined to finance the purchase of a foreclosed home. To expedite the process, consider choosing a lender and getting pre-approved for a mortgage loan. 

If you are interested in purchasing a foreclosure, we recommend exploring the government-sponsored financing options available to those who qualify. A 203(k) loan is a type of financing provided by the Federal Housing Administration (FHA). There are several different types of 203(k) loans. You’ll generally be charged a mortgage insurance premium to offset the bank’s risk. You will also find the interest rates for these types of loans are about 0.25% higher than conventional loans. 

The HomePath ReadyBuyer program is offered by the Federal National Mortgage Association (FNMA), or Fannie Mae, and primarily targets first-time home buyers. After participating in an educational course, homebuyers are eligible for closing cost assistance and other benefits. 

Finally, the HomeSteps program may be a good option if you live in one of the following states: Alabama, Florida, Georgia, Illinois, Kentucky, North Carolina, South Carolina, Tennessee, Texas, and Virginia. This program, which Freddie Mac facilitates, only requires 5-10% down and does not require mortgage insurance. You’ll need to find a HomeSteps eligible property to use this program. 

While buying a foreclosed home may offer a unique opportunity, it’s critical to understand the potential drawbacks so you can make an informed decision and confidently move forward.

Lengthy process with additional paperwork 

Foreclosures present a lot of complications, and with those complexities comes additional paperwork and processes. While banks are eager to sell their properties, their processes and response times can quickly become frustrating. If the bank has a backlog of foreclosed properties, its response times can exceed several weeks or months. 

Unlike other types of homes, foreclosed homes are sold “as is.” The buyer is responsible for any damage, repairs, or maintenance that may be needed on the house. This can include repairs that may not be immediately obvious. In the case of a foreclosed property, the seller will make no upgrades or improvements. However, sellers do have an obligation to disclose the existence of lead paint. In some places, sellers may be required to disclose past structural defects, a history of flooding, or infestation. 

Since these homes are sold “as is,” you should expect them to need repairs and updates. Depending on the home in question, these repairs may be costly, especially if they are unexpected. It’s highly recommended that you complete a house inspection during the home buying process to understand what repairs will be needed. 

While rare, you may also experience vandalism, especially if the property has been vacant for an extended period. In some cases, previous owners may intentionally inflict damage or remove items of value from the home. 

Real estate investors and professional house flippers are familiar and well-versed in buying foreclosed homes. They’ve made buying foreclosed properties their entire business, and you can expect them to be discerning buyers. Foreclosed homes with the most opportunity will often attract several bidders. The competition for foreclosed homes has only increased in recent years thanks to the foreclosure moratorium issued in response to the COVID-19 pandemic. 

Once you understand the potential pitfalls of purchasing a foreclosed home, you can weigh any concerns against the unique investment opportunity this kind of purchase offers. 

The most significant benefit of purchasing a foreclosed home is the price. Foreclosed homes are typically sold for less than other comparable homes in the same area. For pre-foreclosures or short sales, the owner has limited time to sell the property. They’re often willing to accept less than the home's current market value. For other types of foreclosures, it’s helpful to understand that banks, local law enforcement, and government agencies are not in the business of selling real estate. It’s often in their best interest to sell any real estate they acquire quickly and efficiently. 

In some cases, you may be offered additional incentives outside of price. Some sellers may offer a reduced down payment, lower interest rates, and a reduction or elimination of appraisal fees or closing costs. 

Purchasing foreclosed homes can be a smart way of acquiring lower-cost real estate and adding to your real estate investment portfolio. If you plan to rent the home and you have the funds to make any required repairs or updates, you may be able to establish a cash flow-positive rental property. 

Make smart real estate investments in partnership with Belong 

Once you’ve purchased and financed your investment property, you can consider how you will manage and maintain your new investment. Belong is a modern alternative to the property management companies of the past. We help increase your returns and price your property for maximum cash flow. When the time comes to find residents for your investment property, we attract, screen, and retain residents who will value your new property as much as you do.

Learn more and calculate how Belong can support your real estate investment strategy.

Should you buy a foreclosed home? Read up on the pros and cons of buying a foreclosed property as a real estate investments.

California 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 California

Blessed with opportunity and gorgeous weather year-round, California enjoys a strong demand for rentals from around the world, making it an ideal 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 a rental is key to keeping the home profitable and in good shape. 

While the weather varies across the state (yes, we’re looking at you San Francisco), 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 Cali. 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 with Belong PRO, we can handle the lot — from speaking with the residents about issues to connecting you with one of 10,000+ professional contractors in our extensive vendor network. 

Winter Maintenance Checklist for California Rental Homes

While winters in California are mild, 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. 

Unless your home is in the mountain ranges, there’s a good chance you won’t have to worry about snow removal or planning for frozen pipes. What your residents might do though is keep their homes locked up tight and crank the heat. 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 after a hot shower and opening windows on sunny days.

Check and/or service heating to the home to ensure it’s operating

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

Check for mold and moisture issues, remind residents about the importance of ventilation 

Check house siding for damage and/or leaks

Spring Maintenance Checklist for California Rental Homes

Most of California is considered to only have two seasons: summer and winter. Alas, spring does exist and brings with it plenty of sun, rain, and opportunities for your yard to grow out of control. If your rental home has a lawn and yard, spring is a good time to give it some love to ensure you maintain curb appeal and function. 

Summer in California can also bring on wildfires, so it’s a good time to inspect smoke alarms, plus any fire extinguishers, CO detectors, and sprinklers to make sure they are working properly. 

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

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

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

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 

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 

Summer Maintenance for California Rental Homes

Summer brings out the heat — and the pests. If your home is prone to infestation, or your residents have concerns, now is the time to inspect for insects and rodents. 

When the humidity rises, so too does the mold so be sure to make sure there’s no damp spots or moisture damage in the home too. You can recommend that residents use basic moisture absorbers (such as DampRid) in dark areas that attract mold, like closets and laundry rooms. 

If you have hedges or trees that are burning in the summer heat, resist the temptation to trim them until the heat has passed. Pruning stimulates growth, so removing burnt branches will encourage new growth, which may also burn in the heat. 

Inspect and control any pest infestations such as insects and rodents

Check any supplied appliances such as refrigerators and washing machines

Operate automated sprinkler systems if your home has one

Fall Maintenance for California Rental Homes

The leaves are starting to fall and where do they land? Straight in the gutters. If gutters get clogged and water can’t flow, it could saturate the roof and lead to deterioration or leaks. The first item on your fall maintenance checklist is to make sure the home’s gutters are clean and clear — and check the roof condition for damage or leaks well  before winter sets in. 

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 even if it’s not used regularly, it needs to be inspected. 

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 any chimneys and ensure they are clear and functioning

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

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

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

Belong eliminates the hassle of rental property maintenance

When your home is cared for with Belong PRO, it will always stay well-maintained thanks to our extensive vendor network of over 10,000 professional contractors. You can make repair requests through the app or even subscribe to regular maintenance services so nothing ever falls in disrepair. 

If unexpected repairs or emergency maintenance costs do arrive, Belong has that covered too. All Belong homeowners are pre-approved for our Split It program, which spreads the cost of repairs across the term of your lease. This means you’ll always stay cash flow positive, receiving guaranteed rent every month minus a Split It repayment.

To learn more about how Belong PRO is making renting loveable for homeowners with flexible financing, rewarding perks and constant innovation, check out our homeowners page.

Or visit one of our many local pages to learn more about services in your neighborhood:

How to budget and plan for a bathroom renovation for your home or rental property.

What is the Average Cost of a Bathroom Remodel?

Kitchens may sell homes, but the bathroom can be a total make-or-break room too. Bathrooms are a private retreat where we can wash the day away and refresh ourselves — and a cramped dark space can seriously harsh this vibe. Whether you’re looking to remodel your own bathroom or planning to upgrade the investment in your rental home, this guide looks at the average costs of a bathroom remodel and how to plan for one. 

What should I budget for a bathroom remodel?

The National Kitchen and Bath Association has always recommended that homeowners budget between 5 - 10% of the value of their home as an appropriate investment into a bathroom remodel. That sounds like a neat little figure, but it’s way too simplified for a modern homeowner. This would mean that if your home is worth $750,000 for example, you should budget between $37,500 - $50,000 for a bathroom remodel budget. Are your pockets hurting yet? 

It would also suggest that if your home is worth $1.4million dollars (the median house price in San Francisco) this rule would have you spending $70,000+ for a bathroom remodel. You certainly could go this high for a lux high-end master bathroom, but in reality, depending on what you need and the quality of finishes, you may not even need to spend half that. To get a better picture of what people are spending on bathroom remodeling, we have pulled together some average costs across the country. 

What is the average cost of a bathroom remodel?

HomeGuide says the average bathroom remodel costs between $5,000 - $30,000. Smaller bathrooms and ensuites will be at the lower end of the scale, with master bathrooms higher. Angi puts the national average at $11,225, with renovations costing around $120 to $275 per square foot, depending on the quality of materials, labor, and layout changes.

The size, age and condition of the bathroom you’re looking to remodel will of course affect how much you need to spend to upgrade the space. The main factor that will really influence the cost of a bathroom remodel is just how much work you’re looking to do. There’s a big difference between updating a few fixtures and gutting a space to change the layout. 

There are three typical types of bathroom remodels:

1. Simple bathroom refresh
Cost guide: $2,500 - $15,000

This price range would allow you to replace the existing bathroom fixtures and update the design, like-for-like without any changes to the layout. This would include modest finishes including off-the-shelf options.

2. New bathroom remodel
Cost guide: $18,000 - $24,000

At this price point, you could install new fixtures and include some higher-end or luxury design finishes. This could also include some changes like a new vanity. 

3. Bathroom overhaul or luxury finishes
Cost guide: $26,000 - $35,000+

Sometimes everything has got to go, or an old bathroom layout just doesn’t make sense and align with what you or a potential buyer/resident wants. At this price point you could completely overhaul the bathroom, changing the location of fixtures and upgrading the materials. 

It’s also important to have a buffer in your budget. Especially in this era of wild inflation, a tight labor market and global stock shortages, prepare that you will need to spend more than you may have planned. Once you’ve set what you want to spend, you should plan to keep around 10-20% of that aside for unexpected expenses. If you suddenly find out that your dream tile went up by $2 sq/ft or your hot water heater needs to be replaced, having a buffer will take the stress out of the unexpected. 

What is the most expensive part of a bathroom remodel?

When planning a bathroom remodel, there are four factors that will heavily influence the cost of your renovation:

Bathroom remodeling can involve a large cast of contractors, with different professionals and qualifications needed for plumbing, tiling, electrical work, drywall, demolition — the list goes on. Labor will take up to 20 - 50% of your remodel budget. There is also the dual-issue of rising inflation and contractor shortages that the US is currently facing, which means homeowners are often paying a premium on the average price from years past. 

To help find competitive quotes and instant access to vetted contractors, Belong has an extensive vendor network of over 10,000 professionals on hand. 

2. Moving fixtures or expanding the space

Replacing bathroom fixtures like-for-like is the simplest solution for a bathroom remodel. As soon as you decide to move toilets or make a bathroom larger, that is where the costs can add up. You will need to account for structural planning, demolition and extensive plumbing work to alter the layout. Additional electrical work will likely be needed for moving powerpoints and lighting too. 

For example, the cost of a new toilet can cost anywhere from $100 - $1,000, whereas moving a toilet could cost around $2,500 - $3,000+ due to the plumbing work required.  

Tile choice is also going to have an impact on the cost of a bathroom remodel. Tile prices can vary greatly per sq/ft and the more tiles you need, the higher the cost. So if you choose a beautiful accent tile and need it done floor-to-ceiling, your labor and tiling costs are going to be considerably higher than for a lower-end tile on a small ensuite with drywall outside of the shower. 

If you can choose a new vanity off-the-shelf from your local hardware store, this is going to be considerably cheaper than custom-designed cabinetry and countertops. If you don’t have the budget for custom work, consider this at the planning phase and look at standard sizing that can work for your space. 

Bathroom upgrades that will make people want to rent your home

When renting, you don’t get a lot of say in how your bathroom looks. That doesn’t mean there aren’t things on your wishlist though — and things you would happily pay more rent to have in your home. An upgraded or secondary bathroom is high on that list (second only to a great kitchen). 

As a homeowner, it’s worth keeping these wishlists in mind to attract quality long-term residents to your home. A bathroom remodel can make your rental home unmissable at inspection time, keeping your vacancy rates low and rental income profitable. 

When remodeling your home for the rental market, keep in mind the kind of renters you want to attract. For example, families like to have a bathtub for young kids (and Mom), so if you have a spacious home for rent in a family-friendly area, don’t skip the tub and plenty of storage in a bathroom remodel. If your home is marketed toward young professional couples, you could save money by having a shower-only and investing in other luxury touches or aesthetics to give the space a spa-like vibe. 

You should also consider the functionality of the space and the fact that you will foot the bill for repairs and maintenance. For example, it’s much cheaper to install a shower curtain over a glass door — but it could cost you more in the long run. Shower curtains have poor functionality, letting water pool in your bathroom and risking issues with mold and mildew over time. You should also consider how the bathroom will be ventilated and have contractors inspect for leaks or erosion that could be costly to fix down the line. 

Find out how to maximize your rental ROI with Belong

A home in great condition screams "love me!" If you want to reduce your vacancies and attract high quality residents that treat your home with respect (and pay top-dollar to live there), good repairs or a fresh update will go a long way.  

Belong has introduced a way to make sure preventive maintenance runs like clockwork. Add, pause or remove recurring services and maintenance subscriptions, right from the Belong app. From lawn mowing to gutter cleaning, set and forget your seasonal home maintenance and let Belong do all the work. This will also keep your expenses predictable, supporting your cash flow. And if unexpected repairs are needed or you want to refresh your bathrooms, we’ll let you spread the costs over the term of your lease agreement. 

These are a couple of the many ways 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 ditch property management in Seattle, Redmond, Oakland, San Francisco, San Diego, Los Angeles, Tampa, Orlando, Jacksonville, Miami and many more.

What is the average cost of a bathroom remodel? Find out with our guide on how to budget and plan for a bathroom renovation for your home or rental property.

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

Welcome to The Playroom