If you are considering doing rentals in your business, there is a lot that you need to know.
1. Rentals are extremely risky legally. You should not work with a renter or landlord unless you have taken courses on how to do a rental. It is way too easy to inadvertently violate a Fair Housing Law. Even a tiny infraction can result in huge fines (to the tune of $25K or more) from the state. We charge higher than normal E/O insurance on rentals ($100) per transaction unless you have provided us certification that you have taken the two-part rental course, in which case the E/O insurance we charge will be the normal $35 per transaction side.
2. Here are the courses for MA Landlord/Tenant laws.
· Residential Rental – Landlord/Tenant Issues – Part 1 (RE98R16)
· Residential Rental – Landlord/Tenant Issues – Part 2 (RE99R16)
Here are a couple of online places you can take them.
www.NewEnglandRealEstateAcademy.com
or
https://area-school.com/real-estate-classes/real-estate-continuing-education-classes-ma/
Or you can take the classes with any other place that is offering continuing ed classes.
3. If a tenant asks if a landord is willing to take a Section 8 our Housing Voucher client the answer is ALWAYS YES. Your landlord cannot discriminate by not accepting Section 8 or Housing Vouchers.
4. If a tenant asks if a landlord will accept a service pet (any service pet at all...including an emotional service iguana) the answer is YES. Your landlord cannot discriminate by now allowing someone to have their emotional service animal. This is even if the property is being advertised as NO Pets.
5. You should make sure that your landlord understands the duties they must abide by when collecting last month and security deposits.
6. You cannot collect extra "pet" deposits in Massachusetts.
7. Your landlord cannot turn down a rental application because the rental has a child.
8. Your landlord MUST understand the lead paint laws and the repercussions of renting a property that is not deleaded.
There is MORE liability in doing a rental in Massachusetts than there is in selling a house. It is for this reason that we strongly discourage you from doing rentals unless you have taken the rental certification courses above.