Owners of Boston high rise condo enjoy some financial advantages in 2018: market conditions are clearly in their favor if they wish to sell or rent their units thanks to continuous socioeconomic development. If you wish to rent out your Boston condo, you can do so with the comfort of knowing demand will be healthy. With median rental rates higher than $2,500 per month for Boston apartments, your Boston high rise condo is bound to rent for a lot more, particularly if it is located in a prime or trendy district.
As with any financial endeavor, renting a Boston condo is not without risk. Many of the risks listed herein present the potential of something going wrong even though the likelihood is negligible.
1. Late Payments
Late payments are the most common risk of renting out a your condo, and they should not affect loft owners who plan ahead and build a cash reserve equivalent to three months’ worth of mortgage, utilities, and association fees.
2. Troublesome Tenants
The scariest risk in renting a Boston condo may be having a bad tenant, especially if you have been able to cultivate a good relationship with your neighbors and members of the homeowners association. A bad tenant is not someone who is late paying rent or utilities. In fact, landlords should assume renters will be late from time to time. A truly bad tenant would be someone who is a nuisance or uses your loft for illegal activities.
Some tenants may choose to turn your Boston high rise condo into their own Airbnb-like property. To prevent this, your rental contract must be clear on the number of tenants and how long overnight guests can stay. Good news is that Mayor Walsh is cracking down on Airbnb.
5. General Liability
As a landlord, you will be responsible for providing a safe loft structure. For instance, if an overhead fan falls on top of your tenant, he or she will expect you to cover the medical expenses. For this reason, you should look into landlord insurance policies.