Boston Condos for Sale and Apartments for Rent

Loading...

Boston condo sellers thinking about renting their unsold condominium

It’s one of the inevitable signs of a waning Boston condo seller’s market—homeowners who list their properties with certain value expectations but end up resorting to renting out those properties when they don’t get the price they want or need.

Renting out your Boston condo can be a good strategy to wait out a weaker Boston condo sales market. But doing so can also have its downsides. Here are the basic factors you should consider if you’re deciding to go the rental route.

image 152
Boston condos for rent

1.Understand how Boston apartment evictions work. The bottom line is that you can’t just ask tenants to leave, even at the end of a lease. I realize this sounds crazy, but it’s true. Which means that your tenants may not be ready or willing to leave when you’re ready to list your property again. Get to know the ins and outs of this topic so you can avoid creating problems for yourself.

image 153
Boston apartments

2. Expect potential wear and tear on your Boston condo. People vary in terms of how well they take care of their homes. I’ve been a landlord for 25 years; sometimes a quick paint job is sufficient in between tenancies. But other times, I’ve had to call in floor refinishers, kitchen cabinet painting services, repair water damage, etc.

image 154
Boston condos

3. Make sure your condo insurance includes landlord/rental coverage. This is huge. You should have the proper coverage that includes a wrongful eviction rider and other key rental items. Your insurance agent should be able to guide you on switching up your policy.

image 155
Back Bay condos

4. Consult your CPA about tax ramifications of having a rental property. Two key things: You have to live in your property two consecutive years of the last five in order to sell the home as your principal residence. And you should become knowledgeable about rental income-related deductions.

image 156
Boston apartments

5. You may be out of pocket on monthly costs from your apartment rental. Consider what portion of your property costs the actual rent will cover. In addition to mortgage, you’ll have condo fees, insurance, and property taxes. And you may want to hire a property management company, which chips away at what you’ll be getting in rent (see #7). It’s important to look at the larger picture if you’re paying rent or a second mortgage elsewhere.

image 157
Boston seaport apartments

6. Let Boston apartment agents help you find and secure tenants. Sure, you can download a random lease somewhere and post your rental listing on craigslist. But like real estate sales, a good rental agent is well worth hiring. He or she will give you a realistic rental range, guide and manage prep work, market the listing, find qualified tenants and make sure all the required paperwork is completed. Plus, most of the time the tenant pays their fee.

image 158
Boston apartment agents

7. Conduct a credit report. Make sure if you do rent out the condo yourself you have permission to do a credit report check on the potential tenant.

image 159
Boston Seaport Apartments

8. You might want to hire a property management company. You’ll likely want to contract with a property management company if you’re not going to be living near your rental (or don’t have the time to deal with resolving tenant complaints.) The standard property management fee is six percent of the monthly rent, which adds up to a significant chunk of money on an annual basis.

image 160
Boston Seaport Apartments

9. Consult with a reputable Boston real estate attorney before you move ahead with a rental. Gather all your questions together and have them ready for a phone consultation. Attorneys charge a few hundred dollars an hour, so being prepared will help you avoid an excessively expensive conversation. Be clear on what you can and can’t do as a landlord.

image 161
Boston Seaport Apartments

10. Remember that you are renting to people with their own lives and concerns, one of which is not how much your property is worth. Your future tenants will be looking for their next home and won’t be existing solely as real estate market placeholders, helping to tide you over until your property value finally reaches your desired range. If you’re uncomfortable with the uncertainty around when tenants will ultimately vacate your property, you might be better off making something work on the sale side.

image 162
Boston Seaport Apartments

Boston apartments and condos for rent and the bottom line

Feel free to contact me if you’d like attorney, rental agent or property management referrals. I’ve developed a solid network of professionals over the past 20 years selling downtown Boston real estate, and they would be happy to consult with you at my recommendation.