A recent study has concluded that 39% of buyers prefer to rent out their last residence rather than sell it when purchasing their next home.
The study cites that many Boston condo owners were able to refinance and “locked in a very low mortgage rate in recent years. That low rate, combined with a strong rental market, means they can charge more in rent than they pay in mortgage each month… so they are going for it.”
This logic makes sense in some cases. Boston condo market is a great investment right now.
However, if you have no desire to actually become an educated investor in this sector, you may be headed for more trouble than you were looking for. Are you ready to be a landlord?
Before renting your Boston condominium, you should answer the following questions to make sure this is the right course of action for you.
Questions to ask before renting your Boston condo:
- How will you respond if your tenant says they can’t afford to pay the rent this month because of more pressing obligations? (This happens most often after holiday seasonand the credit card bills come in)
- Have you interviewed experienced Boston eviction attorneys in case a challenge does arise?
- Have you talked to your insurance company about a possible increase in premiums as liability is greater in a non-owner occupied condo?
- Will you allow pets? Cats? Dogs? How big a dog?
- How will you actually collect the rent? By mail? In person?
- Repairs are part of being a landlord. Who will take tenant calls when necessary repairs come up?
- Do you have a list of craftspeople readily available to handle these repairs?
- How often will you do a physical inspection of the property?
- Will you alert your current neighbors that you are renting the house?
- Does your building condo assocation allow renters? Do they allow short-term rentals?
Don’t get me wrong, renting out your Boston condo historically is a great investment. However, it is not without its challenges. Make sure you have decided to rent the condominium because you want to be an investor, not because you are hoping to get a few extra dollars by postponing a sale.
If you’re thinking of renting or selling your Boston condo contact Ford Realty at 617-720-5454.
Boston Condo Statistics for Thursday, January 11th
|Highest Listing Price Boston condo:||$13,500,000|
|Lowest Listing Boston condo||$115,000|