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.
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.
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.
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.
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.
5. You may be out of pocket on monthly costs from your apartment rental. Consider what portion of your property…