Most Massachusetts residents purchase residential property intending to use it for their primary residence. At some point, though, a need or want arises to turn that residence into a rental property. There is a lot to do to get a home ready to rent out.
The to-do list
The when putting a home on the rental market is pretty long. First, it is necessary to check state, city and/or local regulations to make sure it is even allowed. If it is, there may be a need to obtain a rental license. Of course, it is necessary to make sure one has the appropriate insurance to cover the property.
Second, it is necessary to figure out how much to charge and what expenses one might have. Figuring out how much rent to charge is fairly simple. Look at the market and what things are going for in the area. Calculate what it would take to cover the mortgage payment, insurance, maintenance and HOA dues. Then think about other expenses, such as the ability to cover vacancies, repairs, remodeling, a managing firm and marketing.
Third, it is necessary to vet applicants. Not sure how? Don’t worry; you don’t have to do this alone. Legal counsel can help or let you know how you can go about verifying income, run background checks and determine if an applicant is a good fit.
Fourth, put together an iron-clad rental agreement. It is this document that protects the owner and his or her investment. If the wording isn’t right, it can leave the owner exposed to serious problems or even litigation down the road.
An experienced real estate law attorney can help Massachusetts residents who are looking to enter the rental market do so in a way that keeps them protected. Getting assistance is particularly important for those who are new to this. While turning a home into a is a big step, with legal counsel on one’s side, it can be a good thing and provide a good source of income for one’s future.