5 Simple Ways to Upgrade your Rental Property

The importance of always challenging yourself to improve and progress is vital to living your full potential. As spring approaches, now is a perfect time to upgrade and renovate your rental property. Renovations can appear intimidating, because they sometimes take a toll on your finances and time. However, there are plenty of affordable ways to upgrade your property in powerful and noticeable ways. These simple changes will keep your tenants happy and increase revenue. Here are 5 renovation ideas for you to try in 2019:

1. Fresh Paint 

A fresh coat of paint has the remarkable power to liven up any drab room. You can simply touch up the walls with the current color, or give each room a fresh paint job. Neutral colors tend to have have a calming and inviting effect, and are universally appreciated by most tenants. If you plan to paint multiple rooms, paint each room one at a time to simplify the task and reduce labor costs.

2. Install Light Fixtures

Attractive light fixtures have the powerful ability to change the entire ambiance of a room. Modern, crystal chandeliers will add a touch of elegance and grace to any apartment. If you are electronically experienced, you can install the light fixtures yourself to save money. If you choose hiring a professional instead, finding a handyman is much less expensive compared to hiring a electrician. Overall, light fixtures are small accents that make an impressive statement for new or current tenants.

3. Upgrade Windows

New windows can enhance the outside exterior of your rental property, as well as the inside aesthetic. Installing new windows has numerous benefits, including reducing sun or glare activity, enhancing privacy, keeping pesky bugs out, and enhancing the appearance of your unit overall. 

4. Enhance Curb Appeal 

You never get a second chance to make a first impression. By vastly improving the exterior appearance of your apartment units through diligent landscaping maintenance, you will make an impactful improvement on your properties and boost tenant retention rates. Plant attractive seasonal flowers, perennials, or hedges. Another simple yet powerful way to boost your apartment's curb appeal, is to build a walkway. Using stepping stone, gravel, or mulch, you can create a beautiful exterior appearance. Stepping stones are very cost-effective because they require minimal digging, and you don't need to purchase large quantities to cover a stretch of your front lawn.

5. Make Small and Steady Improvements

Finally, making small and steady improvements will improve the overall aesthetic of your rental unit and continuously increase value. Gutting the floors and re-tiling the bathrooms can make a large and drastic improvement, however these projects require time and a considerable price tag. If you do want to make some noticeable improvements, start with small upgrades that still make a huge difference. For example, by replacing old sink fixtures or fixing and re-painting cabinets, you can highly improve your kitchen. Consider whether you need to fix something because it's not working or it is not physically appealing, and start with small improvements as you gradually transform and upgrade your property. 

Boston Rent Remains Among the Most Expensive in the Nation

As spring is approaching, Boston rents have remained among the most expensive in the nation. According to a recently published report from real estate listings site Zumper, the median one-bedroom rent as of February 28^th, stood at $2,390 a month, and a median two-bedroom stood at $2,750. Rent stayed flat in February, and essentially remained unchanged from a month prior.

Boston coming in as one of the nation’s priciest cities to live in is no surprise. Boston has consistently ranked as having similar rent prices to San Francisco, New York, San Jose, Los Angeles, and more. The spring of 2019 will most likely see the same high rent prices. In fact, the only other city in the Northeast that comes even close to Boston in terms of renting costs, is New York. Boston is still leading as the fourth most expensive to live in within the entire nation, just ranking below San Francisco, New York, and San Jose.

Reports show Boston had Nation’s Worst Traffic Commute in 2018

The average Boston driver wasted an average of 164 hours commuting in rush-hour traffic in 2018, the highest total among U.S cities. According to new reports published from research firm INRIX, Boston was rated as having the worst rush-hour traffic congestion in 2018. The company analyzes millions of data for it’s annual Global Traffic Scorecard, and Boston has consistently ranked very badly. 

INRIX also looked at commutes in terms of peak (slowest travel times) versus inter-peak (fastest point between morning and afternoon commutes) travel times. In Boston on average, commutes increased 27 percent during peak versus inter-peak hours. Fortunately, there was some positive news in the recently published data report. In cities like Boston, Washington, D.C, and Chicago, a higher proportion of trips were found to be taken via public transportation, walking, or even cycling. Any car trips were most likely related to business. Conversely, Los Angeles ranked as the most car-dependent city in the nation. On the bright side, Boston’s title as the U.S city with the worst possible traffic may pave the road towards lawmakers making the T lower in price or fare-free.

Rising Seas Are Lowering Massachusetts Home Values

New reports show that rising sea levels are drastically lowering Massachusetts property values. Boston's Seaport hasn't been affected by flooding this year like it was at the start of 2018, however new reports have come out displaying how rising seas are hurting New England property values. The report, first published by New York-based First Street Foundation, a non-profit that studies rising sea levels, revealed that New England homes have dropped more than $400M in value due to tidal flooding and rising sea levels.

First Street Foundation studied 2.5 million properties throughout Massachusetts, Rhode Island, New Hampshire, and Maine coast lines, ultimately determining sea levels had accounted for $403.1M in home price depreciation between 2005 and 2017. Massachusetts faced the greatest amount of property loss, with an estimated $273.4 in lost value. Furthermore, property values are expected to continue decreasing from rising sea levels, unless adaptation and precautionary measures are being taken to stop it. The study stated that homes next to, but not yet in, flood prone areas are still highly susceptible to the damages and depreciating home values brought along from flooding and water damage.

Currently, Boston real estate leaders are going through several storm resiliency studies to determine the best way to prevent $80B of liable commercial real estate from getting damaged by regular flooding in the future. Boston Mayor Martin Walsh revealed a comprehensive plan in October that requested more private-public partnerships to build and protect the city around rising sea levels and flood damage.

How to Deal With Difficult Tenants

Every landlord's goal is to have ideal tenants who always pay rent on time, properly maintain their residence, follow the rules, and continuously renew their lease. Unfortunately, being a landlord involves dealing with all types of tenants, not just exceptionally great ones. Even by following a strict screening process and writing stringent lease agreements, you will inevitably come across difficult tenants at some point, such as those who: 

• Fail to pay rent on time 
• Damage property 
• Sublet without your permission 
• Cause general issues 

Difficult tenants can bring harm to your reputation and business. In Massachusetts, being a landlord is especially a challenge because the laws and rules are nearly all slanted in the tenant's favor. Fortunately, if you have a solid plan in advance to prepare yourself for troublesome tenants, you can handle tough situations smoothly and prevent problems from spiraling out of control. Taking the time to learn the following important legal knowledge will help you address any future negative situations with troublesome tenants:

1. Tenants not Paying Rent on Time 

When addressing tenants who are behind on their rent payments, you must always maintain composure and professionalism. Communicate with the tenant in person and in writing, reminding them of the consequences of paying rent late, including any late fees. Always save written documentation in case you need to bring the case to collections. 

In Massachusetts, the grace period for a renter must be clearly defined in the lease agreement, including when, where, and how the payment must be made. A landlord cannot begin the eviction process within the grace period defined in the lease. Late fees are also required to be defined in the lease agreement. According to Massachusetts laws, late fees and/or interest charges may not begin until 30 days after the rent payment is due. If the grace period expires and no payment is made, the landlord can begin the eviction process. Landlords are required to first provide you with 14 days "Notice to Quit". If the tenant makes a payment within these 14 days, the landlord can no longer continue the eviction process. 

2. Tenants Suddenly Abandoning their Lease

When you find out one of your tenants has suddenly abandoned their apartment and moved out, it's important to understand the law on property abandonment. You have the legal right to pursue unpaid rent and any additional fees the security deposit does not cover. Ensure that you document all efforts made to communicate with the tenant and keep receipts of any necessary repairs that were made. If your efforts to collect the rent back turn out unsuccessful, you may file your case with small claims court or hire a collection agency to track down your tenant. Consider reporting the tenant to all major credit bureaus, which will negatively impact their ability to secure another apartment rental. 

3. Property Damage 

If your property has been accidentally or purposely damaged, you must first asses the damages and figure out repair costs. Discuss restitution with the tenant and listen to their side of the story. If the property damage is minor, landlords have the power to retain the security deposit to cover any damages incurred by the tenant. Also consider asking your tenants to purchase renter's insurance, it's extremely affordable and prevents many major problems. 

4. Creates a General Nuisance 

Occasionally you will run across renters who break rules, accidentally or purposely. Examples of common troublesome behavior includes sneaking pets into apartments which are not pet friendly, or having large parties which cause noise complaints and legal worries. Whatever the case is, always begin by confronting the tenant in a respectable and kind manner. Ensure you go over the lease agreement terms and address any concerns or confusions they may have. A responsible property manager should always have an eviction clause in your lease agreement to protect yourself from troublesome situations that persist. 

Overall, having a clear-cut system to handle troublesome tenants will save yourself many headaches and legal troubles. Take the time to prepare yourself and educate yourself on property laws, which will allow you to conduct yourself in a confident and efficient manner. Remember that taking the time and investment to conduct background checks and credit checks before signing a lease often prevents many problems. 

Mortgage Rates Drop Lower in Early 2019

The new year started with lower mortgage rates across the board in the U.S. The 30-year fixed mortgage rate recently dipped to 4.51%. The low mortgage rate combined with decreasing home price growth should get prospective homebuyers excited to buy. However, the recent turmoil of the stock market may affect home buying activity in the next few months. The 30 year mortgage fixed-rate averaged 4.51% for the week ending January 3, 2019, down from last week when it averaged 4.55%. A year ago at this time, the 30 year fixed-rate mortgage averaged 3.95%. The 15 year fixed mortgage rate average 3.99% this week, down from last week when it averaged 4.01%.

This mortgage-rate drop offers a potential boost to the housing market. The decline on mortgage rates gives consumers an opportunity to obtain low rates on loans to purchase or refinance their homes, if they can look past volatile financial markets and still high home values. High home prices, stock market swings, and a traditionally slow time of year for home buying have largely lowered housing-market activity in recent months.

Short-Term Rentals Will Get Hotel Tax Treatment Under Newly Enacted Massachusetts Law

Under a newly enacted Massachusetts law, short-term rentals in Massachusetts will soon be taxed at the same rate as hotels. Massachusetts governor Charlie Baker signed a bill into law in late December aimed at regulating short-term rentals. This new measure goes into effect July 1st, and requires all hosts to register with the state, carry insurance, and taxes them at the same 5.7% short-term rental tax that hotels currently pay. The new law is expected to bring in at least $25M annually for the state. However, hosts who rent their home fewer than 14 times annually are exempt from the tax. 

The most popular short-term rental website, Airbnb, is very unhappy with the decision and is already preparing to fight back. Airbnb Northeast Press Secretary Liz Debold recently released a statement expressing their disappointment in the "flawed bill" and stated that Airbnb will continue to fight for "hosts, guests, and local small businesses". Airbnb most recently filed a lawsuit in federal court in November to overturn another Boston short-term rental law passed last summer which would have required hosts to register and a pay a $200 annual fee.

This new law will bring several large changes to Massachusetts, which encompasses several regions especially popular for short-term rentals. Cape Cod, the Berkshires, and Boston are specifically very profitable regions for Airbnb hosts. Under the new law, Boston is permitted to add on an additional 6.5% tax on short-term rentals. Massachusetts will be the first state requiring short-term rental hosts to register with the state. This law has serious benefits for the safety and security of consumers who stay in Airbnbs. Hotel industry groups were especially pushing for the required state registry and were happy with the new law. Lawmakers believe this law will create a more balanced playing field between short-term rentals and traditional hotels, leading towards a more fair and practical system.