Investing in the Boston real estate market can be an incredibly profitable venture. As one of the biggest cities in the nation, there are thousands of people looking to buy and rent properties.
However, it’s important to note that there are several risks associated with renting a property, from tenants to financial issues. If you’ve never owned a rental property before, you’ve come to the right place!
In this comprehensive guide, the experts at BRI Management will go over everything you should know to rent out your Boston home safely. Let’s dive in!
Step 1: Understand the Local Landlord-Tenant Laws
As a landlord, you should have a sound understanding of your local rental laws. Understanding your legal responsibilities, Fair Housing laws, and how to evict a tenant effectively will help keep your investment protected at all times.
Here are some important things you should know about Massachusetts’ landlord-tenant laws:
- Your property must comply with building, health, and safety codes. Your house must be structurally sound and have running water, working heating systems, and smoke and CO2 detectors, among other things. Failing to adhere to these safety requirements can lead to costly fines and even early lease termination.
- You must make repairs promptly. Massachusetts landlords are required to address repairs within 14 days after getting written notice from tenants. If they fail to do this, tenants can sue for costs, use their right to repair and deduct, or get a court order to order the landlord to address the problem.
- You cannot evict tenants without a valid reason. Massachusetts landlords can only evict tenants for nonpayment of rent, lease violations, lease expiration or illegal acts. Trying to evict tenants for any other reasons or doing a self-help eviction can result in lengthy legal disputes.
- You don’t have to worry about rent control laws. There is no set limit to how much landlords can charge for rent in Massachusetts. You can also raise rent by any amount and as often as you want simply by giving tenants proper notice beforehand.
- You cannot collect a security deposit greater than the first month’s rent. Landlord-tenant laws limit how much you can charge for a deposit in Massachusetts. Boston landlords are required to hold security deposits in interest-bearing accounts.
- You must comply with Fair Housing laws. Massachusetts landlords can’t discriminate against tenants based on their race, color, national origin, sex, familial status, religion, or disabilities. If you refuse to rent your home to tenants because they have any of these characteristics, you can face hefty fines and even lawsuits.
Step 2: Conduct Thorough Market Research
Not all rental investments are profitable. Properties in neighborhoods with high crime rates or a lack of public amenities often have a harder time getting leased. They also tend to be rented at lower prices, which can significantly affect the return on investment.
Conducting market research before listing your property for rent will help you ensure the success of your investment. This will help you understand local market conditions, such as average rental prices, vacancy rates, and tenant preferences, which are crucial for determining whether an area is ripe for rental investments.
Market research will also help you set competitive rental rates and create a better marketing strategy to fill your vacancies more quickly.
Step 3: Getting Your Property Ready for Tenants
Before listing your Boston home for rent, you must ensure that it’s in good condition. If your property looks great, both in pictures and in person, you’ll be able to attract a wider pool of tenants and fill your vacancies more quickly.
Here are some simple things you can do to improve the overall appearance of your Boston house:
- Invest in cleaning services.
- Apply a fresh coat of paint to the walls and trim.
- Upgrade the lighting fixtures.
- Properly landscape the yard for an enhanced curb appeal.
- Replace outdated fixtures.
- Upgrade kitchen appliances.
- Clean windows thoroughly inside and out.
- Update the flooring if it’s worn out or outdated.
Step 4: Marketing Your Rental Property
Hundreds of homes are listed for rent in Boston every day. This can make filling your vacancies incredibly difficult. Luckily, you can attract a wide pool of prospective tenants by investing time and resources in a strategic marketing campaign.
Start by taking quality pictures of your rental and drafting an attractive listing. Nowadays, most tenants look for new accommodations online. So, you’ll have to post your listing across a variety of websites to reach a larger audience. Investing in social media advertising can also increase your chances of renting your Boston home more quickly.
While digital marketing strategies can help you attract tenants, you shouldn’t ignore traditional advertising methods. Putting up a “For Rent” sign, posting a listing in your local newspaper, and using word-of-mouth references will help you attract an even wider pool of tenants!
Why You Should Consider Hiring an Experienced Property Manager
Renting out a property is no easy feat. Tasks such as taking pictures, answering inquiries, showing the property, and screening potential tenants require around-the-clock availability. If you don’t have the time or patience to do this, you should consider partnering with a property management company.
A knowledgeable property management company like BRI Property Management can help you with anything from getting your property ready for rent and creating a listing to screening potential tenants and drafting a lease agreement.
We can also take over the day-to-day operations of your rental, which will lessen your workload and stress levels while also maximizing your income.
Bottom Line
Boston is a great city to invest in rental properties. However, the competitive real estate market can make it incredibly challenging to fill your vacancies. By improving the appearance and condition of your property and investing in marketing, you can increase your chances of finding great tenants.
By familiarizing yourself with the local rental laws and hiring a property management company, you’ll keep your investment protected and ensure it’s profitable.
Do you need help managing your Boston rental property? Contact BRI Management! Let us guide you through the complexities and challenges of renting out a property in this beautiful city!