Short-term rental vs long-term rental - which is a better investment? Compare the differences to decide if owning a short-term rental is the right fit for you.

Is Owning a Short-Term Rental Property Really More Lucrative? How To Decide

Are short-term rental properties a good investment? It depends on a lot of factors, so before deciding if owning a short-term rental is right for your situation, you need to consider the real cost — including time, effort and money. You should also compare and consider whether you may be better off with a long-term rental that offers stable income, tax benefits, and less wear-and-tear on your home.  

With a higher per-night rate short-term rental properties can be a profitable investment, but finances are likely to vary significantly. Especially in this macro environment, where scores of short-term property owners are reporting increased vacancy rates. Additionally, 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. 

Owning a short-term rental might be best for you if you intend to use the property for part of the year, or if you’re looking for a higher risk and reward opportunity. In the right location, short-term rentals can be very lucrative, but becoming a ‘host’ rather than a ‘landlord’ comes with considerable challenges — including the ethical implications of removing housing options from those who are currently priced out of homeownership. 

A 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. 

Owning a long-term rental might be better for you if you want to earn passive income, take advantage of tax strategies, and prefer a long-term investment vehicle that requires less of your time and energy. If you don’t plan to sell a property immediately, long-term rentals can offer a good return on your investment.

To help weigh up your options, in this article we dive a bit deeper into short-term rentals and what’s really involved in using your home for this purpose. 

What is a short-term rental property investment? 

A short-term rental is a residential home or investment property you rent daily, weekly, or monthly. Also known as a vacation rental, short-term rentals are typically listed on shared economy sites like VRBO, HomeAway, and Airbnb. This is a great option for people who live in their home while renting out a room, or for people who use their home for part of the year — renting the entire house for vacationers when they’re away. 

This differs from a long-term rental property, which is rented to a single person/couple/family for a fixed-term on a lease agreement. This is ideal for investment properties, with homeowners benefiting from the stability of having the same residents for 12-months or more. A long-term rental is also significantly less work than managing a short-term rental — helping to achieve truly passive income if managed well. 

Is it legal to use an investment property for short-term vacation rental?

Before deciding what to do with your investment property, it’s important to note that some cities either restrict or ban short-term rentals for investment homes. Residential homes that are shared are great for vacation rentals, but every investment home used for this purpose makes one less home available to local residents looking for somewhere to live. Many states and counties are intervening and introducing short-term rental ordinances and licensing fees to restrict the number of investment homes used as short-term rentals. You will need to apply for and pay for a permit to operate a short-term rental property in most states in the US. 

In California, for example, there is a new Short-Term Rental Ordinance (STRO) in San Diego that caps the total number of short-term rental properties to 1% of the city’s total housing. In Los Angeles, it’s illegal to put an investment property on the short-term market, with licenses only granted to homeowners who live in the property for at least six months of the year. 

Are short-term rental properties a good investment? 

Whether a short-term rental property is a good investment will depend largely on your financial situation, your ability to invest the time and money into managing the high turnover of guests in the property, and the location of the home. There’s also the ethical consideration of removing a home from the rental market when homeownership is out of reach for a growing cohort of Americans. 

As with any real estate investment, carefully calculate your expenses and potential cash flow. You will also need to evaluate each property to determine if it is suitable for a short-term rental. 

There are unique costs associated with short-term rental investments. Outside of the initial investment of acquiring the home, ongoing short-term rental expenses include:

Listing, marketing, and administrative costs 

Cleaning and preparing the home for every guest

Laundering all bed linen and towels for every guest

More regular maintenance to the property and furnishings

Landscape maintenance if you have a yard or garden beds

Utilities such as electricity, gas and water

Transient Occupancy Taxes and state licensing fees where applicable

Regular supplies and stock of essential items like toilet paper, soaps, shampoos and basic kitchen ingredients

There’s also the time and energy cost. As a host, you will be responsible for customer service associated with your short-term rental. Customer service responsibilities will require you to communicate with potential and current guests promptly and professionally. You will also need to respond to questions or emergencies whenever they arise. You should expect much of this communication to occur in the evenings and on weekends. 

Managing a short-term rental investment property often includes additional responsibilities, some of which you must complete more frequently.  Administrative tasks will include, but are not limited to:

Maintain and update the short-term rental listings on sites like VRBO, HomeAway, and Airbnb

Market the property, arrange for photography, request guest reviews  



Manage bookings and update availability across platforms 



Record keeping tasks which will include finances, bills, taxes, payroll, or vendor management 

Arrange for cleaning and maintenance between every guest

If you can identify and hire the right professionals, you may delegate some of these tasks to others. Engaging a team of professionals will allow you to focus more of your time on managing those partners and solving problems as they arise. It might be worth checking out what other Airbnb hosts are saying about their experience before opening your home as a vacation rental. 

How owning a short-term rental differs from owning a long-term rental property 

Owning a short-term vacation rental can differ significantly from investing in long-term real estate properties for lease on the rental market. Carefully compare the two to decide which type of real estate investment property is best for you. 

With work and dedication, short-term rental investments can be very lucrative. Many short-term rental owners report significant earnings, even if their property is not leased for the entire year. Achieving success requires careful planning and calculations because your property will not have long-term tenants — and your ongoing costs and maintenance will be higher. The cash flow and incomes from a short-term rental property are highly variable, making it more difficult to budget and plan expenses. 

In contrast, long-term rental properties have fewer operating costs and long-term tenants. While a long-term rental may not be able to command the same nightly rate as a short-term rental, finances will be more stable and easier to predict. If your home is with Belong, you can even receive guaranteed rent and manage your cash-flow with financing options for any expenses including maintenance. 

Tax implications and strategies for real estate investments 

Are short-term rental properties a good investment? Short-term rental vs long-term rental, compare the differences to decide the right fit for you.

Is Owning a Short-Term Rental Property Really More Lucrative?

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Should you rent out or sell your home? Get advice from a CPA, asset manager, and realtors to help you understand the pros and cons of this important decision.

Renting vs. Selling 101: The Homeowner’s Guide

Choosing whether to rent out or sell your home is an important decision with lasting impacts on your wealth. This eBook includes advice from a CPA, asset manager, and realtors to help you understand the pros and cons of all your options.

Financial decisions can be intimidating in the best of circumstances, but they are especially so when it comes to real estate. Whether you’re actively trying to grow your investment portfolio, moving out of your first home and sad to leave it behind, or have inherited a property — deciding the best path forward may seem daunting.

That’s why we’ve interviewed some of the brightest and most experienced real estate and financial planning experts to bring you this no-nonsense, easy-to-understand and quick-to-read guide to renting vs selling your home.

You can access a copy of “Renting vs. Selling 101: The Homeowner’s Guide” anytime at this link. Read it online, print it, or share it as you like. Inside, you’ll find practical advice and a list of questions to consider to help you better understand your options.

We cover the “must-knows” of several topic areas in this guide, including: 

Why you should consider both options before taking action

A rent vs. sell cheat sheet with specific pros and cons to consider

Detailed benefits and drawbacks of renting your property

Specific benefits and drawbacks of selling your property

Reflection questions about your unique financial decision to help you make the best long-term choice

Need One-on-One Help? Schedule a Complimentary Session

Belong is not a property management company. We’re the world’s first residential network, and we exist to combine rental home management with asset management, building wealth for our homeowners while taking great care of their residents.

As a service to current and potential Belong homeowners, we offer access to an asset manager’s advice for free. So if you’d rather not read our guide (or you just have more questions!), schedule some time to chat with us here and we’ll get you connected for a complimentary session with our asset manager. 

If you're looking to know what your rental income tax rate will be for 2024, learn more about federal tax rates on rental income in the US for rental property owners.

2024 Federal Tax Brackets on Rental Income: A Guide for Rental Home Owners

In 2024, federal income tax brackets changed to account for high rates of inflation. While we can’t provide personalized advice for your exact tax situation, if you own one or more rental properties, this guide will help you better understand the 2024 rental income tax rate and how it could impact you in upcoming tax seasons. 

How do rental income tax rates work for rental properties? 

Homeowners who list their home on the rental market will have federal tax responsibilities. Landlords need to report all rental income on their personal tax returns, along with documented expenses that can be deducted from this reportable income. 

Rental income is taxed as ordinary income, with a landlord paying tax based on their marginal tax bracket. This is why it’s important to note the 2024 changes in tax brackets, as your rental income will affect the rate in which your income is taxed at. 

The United States has a progressive tax system which means your tax rate increases as your income grows. Tax rates in the United States range from 10% to 37%. Importantly, each person is charged at multiple rates as your income rises, rather than just at the rate of the bracket into which you fall for the total amount of your income. You can also lower your tax burden or the amount of money you will owe at the end of the year by claiming certain deductions on your tax return. Rental properties attract a number of strategies that can help lower your tax liability, so good record keeping is essential. 

In 2024, the income limits for all tax brackets will be adjusted to accommodate inflation. The Tax Foundation lists several federal income tax rates for 2024:

2024 Income Tax Rates for Married Individuals Filing Joint Returns:

2024 Income Tax Rates for Heads of Households:

Read more about tax brackets and rates for 2024 in this handy guide by the non-profit Tax Foundation or see the IRS guide to Tips on Rental Real Estate Income, Deductions and Recordkeeping.

How you are taxed, along with any deductions and benefits you’re entitled to, varies depending on how your property is treated on the rental market and how much time you spend in the home:

Personal residence: If your home is rented for 14 days or less in a year, the property is considered your personal residence and you won’t be required to declare any income. This means you can deduct mortgage interest and property taxes, but not any expenses relating to the property as a rental.

Rental property: If you use your home for less than 14 days and the home is rented for 15 days or more, such as a long-term lease or popular vacation rental, it’s considered a rental property. You will need to report any rental income and deduct expenses based on the percentage of days that the home was rented out. 

The 10% rule: If your property was used personally as a residence for more than 14 days or 10% of the total days in which the home was rented, your home is considered a personal residence and you cannot deduct any rental losses. Some tax deductions still apply, but to a limited extent. This rule generally applies to homes that are used as short-term rentals for only part of the year. 

There are both federal and state taxes related to your real estate rental income, but at the federal level, your net rental income is taxed as ordinary income according to your IRS tax bracket. Essentially, the rental income you collect, minus your expenses, will contribute to your total income, which is progressively taxed. 

To calculate your federal income tax from rental incomes, you (or your accountant) will need to use two IRS forms: 

Schedule E: Supplemental Income and Loss, Form 1040 or 1040-SR

To determine your rental property income (and rental income tax rate), you’ll need to subtract any rental property expenses from the total income generated from your rental property. This number becomes your total taxable income before depreciation. Once you calculate and deduct depreciation from that number, you will add the remaining amount to any other taxable income. 

To complete your taxes accurately, it’s advisable to get help from an accountant. If your rental property is eligible for deductions on your tax return, any costs associated with professional advice such as legal assistance or accounting can be claimed as an expense. 

Rental property income is primarily the rent you collect from your residents. However, there are several other potential sources of income that you will need to include. If your residents have pre-paid some or all of their future rent, you’ll need to include this as part of your rental property income. Security deposits that were not returned to a resident should also be included. If you are still in possession of a security deposit and the lease has not expired, you should categorize those amounts as a short-term liability on your balance sheet, so they are not included in your income. 

Any additional fees, such as pet or lease cancellation fees, will also contribute to your total rental property income. Finally, you’ll need to include tenant-paid owner expenses in calculating your rental property income. These types of expenses can occur if your resident is not obligated to pay for utilities, like water or electricity, as part of their lease but they make a payment and are not reimbursed. 

Rental property tax deductions come in the form of expenses related to the operation and management of your property. These deductions work by lowering the overall taxable income at the end of the year.

Common rental property tax deductions include:

Utilities, pest control, and other services

Secure Rental Income with Guaranteed Rent

Is Buying Rental Property Worth It in 2024? Uncover the benefits and challenges of real estate to decide if it’s the right type of investment for you.

Is a Rental Property a Good Investment in 2024? Everything To Know

The last few years have been quite a ride for the real estate investment market and 2023 was no exception. First there was the historically-low interest rates, skyrocketing rents and massive appreciation gains. Then homeowners were greeted with rising interest rates, high inflation and constant speculation of a recession.

If your head is spinning, you’re not alone. But bottom line: is rental property still a good investment in 2024?

To find out the potential risks and rewards of the rental market in 2024, Belong compiled research and analysis on the current rental property market from a variety of sources and Belong's own internal insights. This took place between June and November 2023 and is subject to change.

Discover Belong PRO: Take the guesswork out of your cash flow with guaranteed rent, 24/7 support and more by joining the Belong network. 

What are the potential rewards in the real estate market in 2024?

The U.S. doesn't have one 'housing market', but rather many housing markets within every locality. A good buy in Seattle isn't the same as a good buy in Salt Lake City. Some cities have consistent demand, others will go through fluctuations based on supply and demand.

So is buying a new investment property a good idea in 2024? The answer will always depend on your personal situation and the properties you're considering. That said, here is a list of 6 potential rewards or 'pros' of investing in the real estate market in 2024. 

1. Rental homes can hedge against inflation

When inflation rises, so do rents. Real estate investments are often described as a "hedge against inflation." This is because with a fixed-rate mortgage, interest payments will stay the same but your rental income can increase over time. You'll also be building equity in the home and can benefit from inflation and appreciation long-term. 

2. Property values have a history of increasing after economic downturns

Housing appreciation has skyrocketed in recent years, with double-digit gains on the value of most homes. Of course, there's always the risk of an economic downturn that could change that quickly. Thankfully, property values have a history of bouncing back and increasing after economic downturns. That means if you're investing for the long term, you can expect the value of your property to rise over time — even if there's a risk of values declining in the short term. 

3. Single-family homes are less volatile than the stock market

According to data from Roofstock, average annual returns on single-family homes in the rental market are comparable to stock market returns and outperform bond returns, but with considerably less volatility. They also report that there's no correlation between single-family homes and the stock market as an investment, meaning that real estate can be a good way to diversify a portfolio. 

Like the stock market, real estate investing requires careful planning and knowledge to maximize returns. Many first-time investors face a learning curve, but there’s an opportunity to learn what works for your personal finance goals and build on it. Our Belong PRO team specialize in working with first-time rental owners, so if you’re just starting out or have inherited a home, we can simplify your journey and financial success.  

Learn More: What Should I Know Before Renting Out My House For The First Time?

4. Low affordability is fuelling rental demand

Even as house prices slow across many markets, they're far from affordable for many Americans. CNBC reported that even with pricing slumps in some markets across 2023, a number of research firms predict that home prices will keep rising in 2024. This is simply because there aren’t enough homes to meet demand. 

People will always need a place to live and as fewer Americans are able to buy their own homes, good rental investments in the right neighborhoods can continue to attract long-term residents with low vacancy rates. 

Learn More: Belong Expands to New Markets, Giving More Americans a Place to Belong

5. Rental expenses come with tax write-offs and benefits 

Tax write-offs are a major perk of owning a rental property. The IRS outlines rental expenses you may be able to deduct on your tax return including mortgage interest, property tax, and operating expenses including property management fees, depreciation, and repairs. You can even deduct the cost of hiring an accountant or tax professional to maximize your claim. 

Learn More: The Ultimate Tax Prep Guide for Landlords

6. Technology is making it easier than ever to manage a rental property

For the longest time, there’s only ever been two options for managing a rental property: do it yourself (which is a lot of hard work), or hire a property manager (which can come with its own challenges). 

But after lagging behind, technology is finally finding its place to revolutionize how rental homes are managed. Because the real opportunity that modern tech presents is the chance to completely rewrite the rental experience. 

Belong does exactly that, combining industry-busting technology with human smarts to make renting lovable for both homeowners and their residents. From guaranteed rent and 24/7 customer service to innovative financial solutions, we’re flipping old school property management on its head. Learn more here. 

What are the potential risks in the real estate market in 2024?

Now that we've covered the potential rewards, what are the risks of investing in a rental property in 2024? Again, this will vary depending on your personal situation and the locality where you want to invest. But here is a list of 6 risk factors that you should consider before buying a rental property in 2024. 

1. Not all real estate investments create passive income

Owning rental properties isn't always a passive investment. If you're managing the property and finding renters yourself, you'll be spending a lot of time communicating with tenants, hiring (increasingly expensive) maintenance workers to fix issues, and finding new tenants every time renters decide to move out. 

Many first-time landlords say it's a second part-time job they never anticipated. Do your homework and find out the real time-cost of property management and consider if you need to outsource the work.

2. Low inventory is making it more difficult to find good investment options

When demand is hot, many cities become seller’s markets. If you already own a rental property, you’re sitting pretty. But if you’re looking to break into the market, the increase in competition will make it harder on your rental cash flow in the short term. 

3. Interest rates are tipped to remain high

House prices are already high, so an interest rate above 7% can make it hard to finance a rental property investment. Is there any relief in sight in 2024? Maybe, but not until the second-half of the year, according to a CBS Money Watch report. 

Like 2023, this means that unless you have decent capital for a large deposit, buying an investment property in 2024 is going to cost more than in previous years. Renting out a home with a mortgage? Read this first.

4. Rental growth has slowed and may decline in some areas

Location in real estate is always important. But it becomes more so when vacancy rates rise or values drop. Choosing the wrong neighborhood in 2024 could create major challenges, including lower rental income and property values than other markets and a smaller pool of quality tenants to rent to.

According to Zillow in November 2023, rents are still rising but as they stabilize, renters are getting more concessions now than they did in the past few years to sweeten the deal. In 2024, you will need to ensure pricing is accurate and that your house is in top, move-in ready shape to attract the best price and not rely too heavily on the massive rent bumps of recent years. 

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

5. Maintenance costs are heavily inflated

Is a rental property a good investment in 2024? Uncover the benefits and challenges of real estate to decide if it’s the right type of investment for you.

Is Buying Rental Property Worth It in 2024?

Get Predictable Returns in 2024 with Guaranteed Rent

Belong looked at Labor Department and Census data to calculate which metros have the biggest housing shortages.

Metros with the Biggest Housing Shortages

Remote work, COVID-19 pandemic migrations, and more investors are causing a housing shortage that's stopping potential homebuyers from accessing the American dream.

The nation has a shortage of 6.5 million homes, according to a Realtor.com analysis—the result of a nearly decades-long construction slowdown following the Great Recession. Still, this year, home sales are on track to be at the lowest level since 2008, when the housing bubble burst, according to Redfin.

"It's an affordability issue," Haydar Kurban, Ph.D., director of Howard University's Center of Excellence in Housing and Urban Research, told Stacker. "People cannot find housing with the prices that they can afford."

The pandemic ushered in more Americans working from home, creating the need for employees to have homes with enough space to function as offices. These workers expanded their home searches beyond pricey urban centers and settled in more affordable cities with attractive amenities—the leading reason for home prices increasing 24% between November 2019 and 2021.

Not only are home prices at record levels, but mortgage rates currently hover near 8% after rising two full points in 2023. Even 1 percentage point can increase a monthly payment by hundreds of dollars. Most American homeowners (63%) need mortgages to purchase homes.

Also adding to the housing shortage and competitive market is the influx of investors looking for potential Airbnbs, flips, and rental properties. Investors bought a record high of "18.4% of the U.S. homes that were purchased in the fourth quarter" of 2021, according to a Redfin study.

Belong crunched Labor Department and Census data to find out which metros are having the biggest housing shortages.

Shortages were determined by calculating the number of new homes being built for every new job added. Generally, one new housing unit should be built per new job to maintain a balanced housing market. Ratios were determined by dividing the number of jobs added between August 2022 and August 2023 by the number of building permits issued from January to August 2023.

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

While the housing shortage is a national issue, the reason for the crisis is often a regional or even local issue. For instance, major cities such as New York and San Francisco have stricter regulatory requirements, making it harder for developers to build new homes.

Places plagued with the most acute housing shortages had been experiencing population loss leading up to the pandemic; therefore, builders were not putting up new properties. But most people who moved during the height of the pandemic found refuge in these smaller counties.

These migratory patterns made housing in the new locations more competitive.

To combat the affordability problem, federal and local governments are making moves to increase home construction. The Biden administration announced a plan in October 2023 to encourage the conversion of office space to housing; the month before, New York City proposed making it easier to build by lifting zoning restrictions and easing mandates.

Below are the 15 metropolitan areas with the most severe housing shortages. Metros needed at least 50 housing units under construction to be ranked.

- Job-to-housing permit ratio: 16.4
 -- 61 permits issued
 -- 1,000 jobs added

- Job-to-housing permit ratio: 16.8
 -- 191 permits issued
 -- 3,200 jobs added

- Job-to-housing permit ratio: 17.1
 -- 755 permits issued
 -- 12,900 jobs added

- Job-to-housing permit ratio: 17.1
 -- 187 permits issued
 -- 3,200 jobs added

- Job-to-housing permit ratio: 17.7
 -- 356 permits issued
 -- 6,300 jobs added

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- Job-to-housing permit ratio: 18.0
 -- 350 permits issued
 -- 6,300 jobs added

- Job-to-housing permit ratio: 18.2
 -- 132 permits issued
 -- 2,400 jobs added

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Bigger, better, easier support has arrived! Learn how Belong's new expert teams are making renting even more lovable for rental homeowners and their residents.

Easier, Better, Faster, Stronger: Our Customer Support Service is Growing!

Easier, Better, Faster, Stronger — our Belong PRO full service management service has gotten an upgrade! 

As of November 1st, we’ve added new teams of dedicated specialists to our full-service management experience. Still 24/7 and available to both homeowners and residents. 

This means when you contact us, in addition to support from your dedicated account manager, you’ll get direct and fast access to the team with the best knowledge and skills to answer your questions. We have dedicated teams with expertise in everything from Resident Placement and Leasing, Maintenance and Home Repairs to Taxes and HOA Management. 

Like your account manager, all team members will help to place high-quality residents, while maintaining, and generating income for years to come. The only difference you’ll notice is faster response times and a few more friendly Belong faces alongside your regular point of contact. 

We’re always striving to innovate and revolutionize the renting experience. We’ve reviewed feedback from homeowners and residents and concluded that specialist teams were a better way forward to speed up and improve the management of your home. While you can still get in touch with your concierge/account manager as you always have, direct access to a wider range of experts will get your questions or concerns taken care of quicker than if your account manager had to find an answer and get back to you. 

Do I still get 24/7 support? What about my residents?

You bet! No change here, open the Belong app or call/email/text us to access support from your success team at any time. This change also applies to your residents, so no need to worry about any late-night phone calls! 

What happens to my concierge and account manager?

Whenever you reach out you will speak to the correct person on your success team. For example, if you have a question about an ongoing repair, your home care associate will be the one to respond. This will allow for quicker response times without any bouncing around or waiting for a call back after being transferred.

But you can still reach out to your account manager as you always did. Moving forward, they may introduce you to other Belongers to support you, depending on your query. If you have any questions about the change or any outstanding queries on your home, your account manager would be happy to assist you.

No! This change will have no impact on your guaranteed rent payment or your management fee. 

Let us give you a brief introduction to who you may meet on your Belong journey:

First up — getting to know you and your financial goals, so we can help you achieve them through renting out your home. We’ll walk you through the process of getting your home loved by Belong PRO and will arrange for an initial inspection of your rental home. 

Stage 2: Getting your home ready for residents

Based on the inspection report, our home preparation and repairs team will take action to get your home listed at the best possible price. If your home needs a lick of paint or some TLC, they can arrange for a professional from our 10,000+ strong vendor network to complete the job to the highest standard. 

Stage 3: Listing your rental home and placing residents

When your home is move-in ready, our Resident Placement and Listing specialists will get your home seen, vet applicants, and secure a rental price that will meet your financial goals. They will also proactively manage the move-in experience to ensure it goes as smoothly as possible.

Once a lease is signed, our exceptional customer service will extend to both you and your long-term residents. We’re a proactive bunch — nothing will slide into disrepair on our watch and you won’t need to worry about a thing. Our teams are experts at reducing vacancies and maintenance costs by keeping everything in top shape. 

24/7 support is just the beginning — Belong is always innovating and expanding to make renting lovable for homeowners and their residents. Want to know what all the fuss is about? Learn more about Belong PRO here. 

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Rental home emergency preparedness for landlords: Learn how to make a rental property safety plan and why it's important in complying with landlord-tenant law.

Creating a Rental Property Safety Plan: Why It's A Legal Must For Landlords

When you own a rental home you have a legal responsibility to make sure it’s a safe and secure place for someone to live. This is why it's so important to plan for what you’ll do if disaster or emergency strikes. A rental property safety plan can protect both your residents and your own interests.

Maintain the premises in a fit and habitable condition

Keep all common areas in a safe condition

Maintain all facilities and appliances supplied in good and safe working order

Provide and maintain working smoke detectors

Comply with federal, state and local housing laws that apply to your rental home

So what happens if someone breaks a window in your rental home? Or a pipe bursts and floods the bathrooms? Or a wildfire damages the home? Any number of scenarios could suddenly make your home unlivable and risk your rental income.

How to create a rental property safety plan

A rental property safety plan can reduce your liability and minimize lost income. It doesn’t need to be a complex document. It’s more to give consideration for how you might deal with an emergency situation. In this article, we’ll cover five key ways to prepare for an emergency and mitigate damage or loss in your rental property. 

Emergency situations and disasters are unpredictable — which is exactly what insurance is for. Having the right insurance coverage should be the first item to plan for when putting your home on the rental market. Standard homeowners insurance will only cover a property that is owner-occupied, so if you move tenants in, it’s time to find a new policy. 

Depending on the type of coverage you select, landlord insurance policies generally protect you and your rental home against:

Structural damage in instances of vandalism, theft, fire, or storms



Liability from injuries that happen on your property or damage caused by your residents and/or their guests



Loss of rental income when the property is uninhabitable during repairs and restoration

It’s worth noting that flood is usually an optional extra for insurance premiums. You can ask about flood protection in your own policy, or look at joining FEMA’s National Flood Insurance Program. 

If you join the Belong PRO network to manage your rental home, you’ll have the option of adding a dedicated policy to your account. This ensures you are protected as a homeowner and that property damage can be taken care of to keep a roof over the head of your resident. For additional peace of mind, we have the same requirement for your residents, with renters insurance a requirement of all tenants we place. 

Learn More: What Type of Insurance Should I Get For My Rental Property? 

2. Prepare a list of who to call for immediate repairs 

When emergency repairs are needed, how fast can you get someone to your rental home? Do you know who to call or will you be hitting Google to try and hunt someone down? And if you do find someone, do you have the spare cash to pay for the repair bill? 

Contractors and ‘handymen’ are increasingly hard to come by these days. It could take weeks or even months to find someone reliable and willing to take on a small job, such as making repairs on a single rental home. 

That means if you’re a self-managing landlord, you will need to have a list of go-to contractors that you can depend on. Planning for emergency repairs and having a budget handy will make things much smoother if the worst does happen. 

If your home is on the Belong PRO network, your repair plan is all set. Belong PRO homeowners get instant access to our extensive vendor network of over 10,000 professional contractors. All you need to do is notify your Belong concierge, available 24/7 on the app to both you and your residents. You can even choose to spread the costs over the term of your lease, helping you to stay cash flow positive without needing a large contingency fund. 

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