“The whole culture is telling you to hurry, while the art tells you to take your time. Always listen to the art.”
- Junot Diaz
Art enhances the home.
In today’s modern world, an environment adorned with art provides a quiet respite from the busyness of everyday life. Additionally, artwork has a huge impact on our moods and emotions and [...]
For some real estate investors, residential condominiums are the preferred type of investment property. Some benefits include that condos typically are less expensive than whole buildings and there are fewer management responsibilities because condo associations typically handle day-to-day operational issues like snow [...]
Guest Blogger: Nathan Hartseil of First Home Mortgage
Got a College Student in Boston?
Rent costs have you doing a double take?
What if you bought a condo instead?
Many folks are incredulous when I tell them that they are able to purchase a single unit (condo, townhouse, single family) residence for their child here in Boston at the same [...]
We are sometimes asked: Do I really need a buyer’s agent, or can I make an offer on a property on my own? Certainly, it is possible to buy a home without the help of a buyer’s agent. However, there are a number of advantages in working with an experienced agent. Here are some reasons to work with a buyer’s [...]
One of the metrics used by real estate investors to evaluate investment opportunities is called the capitalization rate (or cap rate). The formula is basically the net annual income divided by the purchase price. Cap rates do not take mortgages into account – since different investors receive differing financing terms, the cap rate is a quick metric to evaluate an opportunity on a level playing field.
The chart above shows multifamily cap rate trends over the past 10 years, and includes forecasts for the next five. Boston has maintained a lower cap rate than the national average and is projected to maintain that spread in the coming years. A lower cap rate means that investors are willing to accept a lower return on their investment, so investors will pay more for multifamilies in Boston because they view it as a stronger investment.
This article is focused on multifamily investment property – cap rates for other property types (e.g. retail and office) are different, and each property type has its own set of risks and rewards to consider. If you are interested in more market data or have questions about investment property in Boston, please reach out to us.
The peak spring and summer rental market season can be quite hectic. Fast moving inventory, top dollar market pricing, and competing with qualified applicants. All of this makes the stressful moving experience even more so. After September 1st, however, there are deals to be had if one can wait to move. The rental market tends to slow down during the fall and winter, and sometimes this leaves landlords with vacant apartments. Great deals are available for those who can move quick, or fill odd dates. This is also an opportune time to ask for some painting or touch up before move-in when typically there wouldn’t be time.
Call us and speak with a qualified rental agent to find out more.
Current Fall Specials (click for more info):
Dartmouth St, South End - 2+BR/2BA Penthouse Duplex with Private Deck - $4,995
M St, South Boston - 1+BR/1BA Renovated Penthouse - $2,625
Marlborough St, Back Bay - 2BR/1BA Penthouse with Central Air - $3,450
Warren Ave, South End - 1BR/1BA Renovated with In-Unit Laundry - $2,375
If you own and live in your Boston property as your primary residence, you likely qualify for a residential exemption on your real estate taxes. Through this exemption, the City releases you from paying part of your property taxes. Last year, the residential exemption saved qualified homeowners up to $2,719.09 on their tax bill.
For Fiscal Year 2020, you have until April 1, 2020 to file the application. For more information, including the application and other requirements, visit the City of Boston’s website here.
There are a number of benefits to homeownership, and this exemption is one of them. Be sure to take advantage!
When evaluating “Boston” office space, some of the most popular locations companies consider are: Back Bay, Seaport, Financial District and Kendall Square (which is actually in Cambridge, not Boston).* How do these areas [...]
September 1st has come and gone. Boston’s prime rental season is over and the number of renters out there has decreased sharply. However, all is not lost. Here are 10 tips to help get that apartment leased:
1. Make Necessary Repairs. If something is clearly broken (e.g. cracked windows, doors that do not close, etc.), many prospective renters will see that as a red flag.
2. Deep Cleaning. Has the apartment been cleaned since the last tenant moved out? Prospective tenants this time of year generally have more options and are more likely to scrutinize unclean apartments. If the apartment windows have not been cleaned (inside and out), that is a must-do to help maximize the natural light.
3. Freshen Up the Paint and Floors. Without furniture, scuff marks become focal points. Not only will a fresh coat of paint help the apartment show better, but now is the best time to get that done since there are no tenants to work around. The same is true with the floors – refinishing hardwood floors and replacing carpet (with new carpet or hardwood flooring) can make a world of difference.
4. Improve Curb Appeal. Depending on the type of rental that you own, there may be limits to what you can do to improve the curb appeal. However, for prospective renters, their evaluation of your apartment begins even before they step into the unit. Put yourself in their shoes and walk-up to the building – how does the landscaping look, is the mail in boxes or scattered in the foyer, are the common areas clean, are the hallway lights working?
5. Take New Pictures. Nearly all renters’ searches begin online, so pictures will make the first impression. If you have been using the same pictures, take new pictures to give a fresh look.
6. Consider Going Pet-Friendly. For renters with pets, they will ONLY look at pet-friendly apartments. If you have been advertising your apartment as not accepting pets, then there is a new audience of tenants that you could reach. However, careful consideration needs to be given here – for instance, some condo associations prohibit pets.
7. Change the Lease End Date. Consider entering a lease until June 1st, rather than doing a lease until September 1st. September 1st has tended to be the biggest turnover date in Boston, but June 1st is a popular lease turnover date too. Additionally, if you miss a tenant for June 1, then you still have several months of “prime” rental season to work with.
8. Maximize Your Listing Exposure. Working with a real estate broker can help maximize your exposure. For instance, here at Cabot & Company we utilize a number of listing and advertising platforms in order to reach tenants. Not only does the tenant typically pay the brokerage fee, but we provide a credit check and manage the lease signing and collection of upfront payments.
9. Offer Incentives. Agreeing to pay all or half of the broker’s fee can help alleviate a renter’s upfront moving costs. If the renter needs to come up with the first month’s rent, last month’s rent, month security deposit and a broker fee, that can work out to a sizable amount. Foregoing the requirement for the last month’s rent and/or accepting a lower security deposit can also help.
10. Consider a Rent Reduction. This is the last tip, but probably the most important. If you have already tried some/all of the tips above, then the market is saying that you are asking too much. It is also important to consider the impact of missing an additional month’s rent as opposed to reducing your asking rent – generally, you find that the numbers work out that you are better off agreeing to a lower rent for a sooner move-in date than missing out on a few months of rent while chasing a higher rent.
In 1992, Shelagh Brennan of Cabot & Company and Paul Gleason of Fairfield Realty sold 4 unrenovated Back Bay buildings located at 47, 49, 51 & 53 Hereford Street for $1,020,000 (equal to $255,000 per building) to The Glynn Companies. The package included a parking area in the rear of the 4 buildings that accomodated 10 cars. That same year, [...]