Boston condo owner 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 $2,050 per month for apartments across Boston, your downtown 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 downtown 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 property, 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 loft 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 loft 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.
In Boson, Airbnb is now collecting occupancy taxes from tourists, but you may have to worry about your own tax filing situation changing due to the additional income you derive from renting your loft. The risk is that you may end up in a higher tax bracket.
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.
6. Market Conditions
Renting your loft means taking it out of the market for the length of the lease contract. If real estate conditions start deteriorating quickly, you may not be able to sell your loft fast enough to avoid a major loss.
7. Property Damage
Tenants are not known to take the best care of the properties they rent. You should expect wear and tear of your loft, but there is also a risk that tenants may cause structural damage to the unit or the common areas of the building. Once again, proper insurance coverage can prevent major headaches.
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Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs
In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.
For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.
Charles River Park
Surrounding Communities of Boston
John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.
Ford Realty Inc
137 Charles Street
Boston, Ma 02114
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