Home Buying
No matter how one becomes an accidental landlord, the role brings with it a host of considerations – including the potential statewide rent control law.
Ally Rzesa/Globe Staff
They may have never planned on it, but an increasing number of homeowners in Greater Boston are finding themselves collecting rent as so-called “accidental landlords.”
There are many reasons someone could unexpectedly become a landlord. Perhaps they inherited a house and decided to keep it as a long-term investment. Maybe they got married, moved in with their spouse, and decided to rent their former home rather than sell it. Perhaps they purchased the home a few years ago when interest rates were historically low, and don’t want to give up the rate. A new ADU law signed by Governor Maura Healey in 2024 is increasing the number of accidental landlords as well.
No matter how one becomes an accidental landlord, the new role brings with it a host of challenges and issues — some with serious consequences if they mess up. That’s why experts caution it’s not for everyone.
“Massachusetts is arguably one of the most tenant-protective states in the country,” said Van French, director of rentals for Gibson Sotheby’s International Realty in Boston. “There are a slew of laws that protect tenants that landlords need to be aware of. It’s a minefield.”
Still, according to data prepared for the Globe by Zillow, unsold listings that are turned into rentals make up a growing share of the market, with 2.13 percent of rental listings on Zillow in December previously listed for sale.
Alessandro Scutari and Monica Cipriani decided to rent their two-bedroom condominium in Jamaica Plain when they moved to California for work. – RemarkVisions
For engineers Alessandro Scutari and Monica Cipriani, it was a career move that caused them to become landlords unexpectedly. Cipriani’s job got transferred, and the couple relocated from Jamaica Plain to Sunnyvale, Calif. They had been living in a two-bedroom penthouse condominium with a rooftop deck, which they purchased for $770,000 in 2021. They didn’t want to give it up.
“We had an emotional connection to the property,” said Scutari, 38. “Our son was born there, and our family helped us buy that property. I would like to give it to my son someday.”
They now rent the condo for $4,500 a month.
Alessandro Scutari and Monica Cipriani moved to California and rent out their Jamaica Plain condo for $4,500 a month. – RemarkVisions
Alessandro Scutari and Monica Cipriani bought this Jamaica Plain condo for $770,000 in 2021. – RemarkVisions
Hillery Dorner, a real estate attorney with Dorner Law & Title Services PC in Concord, said there are a number of legal requirements that landlords need to know that could have serious repercussions if they are violated. The security deposit, which cannot exceed one month’s rent, is one of them. Security deposits need to be kept in a in an interest-bearing account at a Massachusetts bank, and must be kept separate from the landlord’s money. The landlord must provide the tenant with the name and address of the bank, as well as the account number. “If you trip up as a landlord, you could be liable for three times the amount of the security deposit,” Dorner said.
There are also strict laws governing the existence of lead paint and children under 6 in a rental property, so it’s important to work with experts to detect and remove lead paint as necessary.
Insurance is another thing to consider. A policy for a rental property is different than the HO-3 commonly used for a single-family primary residence. Landlords will likely need a DP-3 policy, designed especially for rental properties. They should also consider requiring tenants to obtain a rental insurance policy to protect their personal belongings and cover liability if they cause any damage to the property.
While French recommends sitting down with an attorney to become more familiar with your responsibilities as a landlord, it’s also possible to get up to speed on your own.
Gabby Wallace owns this four-plex in Portland, Maine. She has no previous experience as a landlord. – Gabrielle Wallace
Gabby Wallace, who owns a four-plex in Portland, Maine, had no previous experience renting out properties. When she bought the building, a management company handled the upkeep and the tenants — she lived in one of the units. When she had to move away unexpectedly, she decided to become the landlord of not only the unit she vacated, but also the other three units, taking over those duties from the management company.
Wallace tried reading books on real estate but found them to be too general. What helped her the most, she said, was connecting with other landlords she met through Facebook groups and local meetups. To learn about fair housing laws, she read everything she could find on the city of Portland’s website. She was even given a form lease to use from a fellow landlord that she adapted to her business.
From afar, she takes tenant phone calls and texts when issues arise and hires help when needed; for small issues, she relies on friends and neighbors.
“Relationships are important — once established it is easy to manage remotely. And I go to Maine once or twice a year to check on things,” she said.
“It’s been both nerve-wracking and exciting to become a landlord,” she added.
Some landlords may want to invest in steady help. A management company “puts a layer between you and your tenants,” said Al Norton, general manager of Boston Property Care in Jamaica Plain. Norton said his firm can do everything from collecting rent to handling maintenance issues and processing lease renewals, and he’s taken over the management of properties that were initially self-managed.
“The first time people get a call at 2 a.m. because the hot water tank is flooding the basement, they decide they don’t want to do it on their own anymore,” he said.
Norton said that management fees range from 6 to 10 percent of the monthly rent. “I’m not going to say that people can’t manage a rental on their own,” he said. “But the services a management company offers, especially for emergencies, are invaluable. What a landlord is paying for is peace of mind.”
The Massachusetts rent control question
There’s another issue on the horizon that could impact accidental landlords: rent control. A measure that would cap rent increases statewide at 5 percent per year or the Consumer Price Index — whichever is lower — might be on the ballot in Massachusetts this November. If passed, this ballot initiative — one of the strictest rent-control laws in the country — could reduce the burden for many renters in the state. Apartment industry professionals, however, are concerned that it will also have a chilling effect on investment in new housing development because it will cap the revenue a development can generate. Landlords need to be aware of the restrictions that could limit their ability to raise rents — even if someone moves out or is evicted.
“A lot of people who don’t think of themselves as corporate landlords are going to be impacted by this,” said Douglas Quattrochi, executive director of MassLandlords.
The law does, however, carve out exceptions for one- to four-unit, owner-occupied buildings; some short-term rentals; new construction (less than 10 years old); and facilities used for religious, educational, or nonprofit purposes.
Massachusetts resources for landlords
On Mass.gov, there’s information about fair housing law, security deposits, and other issues with rentals, and there’s a helpful state publication that covers a lot more called “The Attorney General’s Guide to Landlord & Tenant Rights.”
Another source, for both information and networking, is MassLandlords, a membership organization for anyone who owns or operates rental housing in Massachusetts. The organization hosts networking and training events, advocates on behalf of landlords and tenants, and offers a voluntary certification program for landlords.
Robyn A. Friedman is an award-winning freelance writer who has covered real estate and personal finance for over two decades. Follow her @robynafriedman.
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