This document discusses considerations for homeowners looking to rent out their home as landlords. It addresses the need to understand landlord responsibilities under Massachusetts law and how to properly handle security deposits and comply with lead paint regulations. Tips are provided around drafting a lease, maintenance responsibilities, and obtaining necessary forms regarding security deposits and lead paint for rental properties built before 1978.
Buying Your Home Selttlement Costs and Helpful Information
Considerations for Homeowners Turned Landlords
1. Considerations for Sellers Turned Landlords
Homeowners who are faced with relocation and unable to secure a buyer for their home are
looking at “Option B”, offering their home as a rental property. As is often the case, in making
tough choices, there is a yin and a yang to this scenario. Covering mortgage, insurance and tax
expenses through rent receipts is certainly an attractive plan achieved through a leasing
agreement, but you need to fully understand your role as a landlord. If you are new to the
landlord business and attempting to offer your home for rent, without the guidance of a
professional, M.G.L. Chapter 151B (related to housing discrimination) and Chapter 186 (Section
15B, most specifically, addresses tenancy) become required reading.
Obviously, there is more to becoming a landlord than collecting the rent. A lot of thought needs
to go into the terms and conditions of the lease. What are your expectations in regards to utility
costs, tenant insurance, lawn care, snow removal, pets, smoking? One needs to consider how to
deal with ongoing maintenance and emergency repairs. Contracting with a third-party or
management company will relieve you of middle of the night phone calls for a faulty furnace or
plumbing issues. My focus here though, is to address two frequently asked questions by
potential landlords, pertaining to security deposits and lead paint.
What do I need to know about security deposits? Such deposits cannot exceed the equivalent of
one month’s rent and the tenant must be given a receipt. Security deposits must be held in a
Massachusetts interest-bearing account, shall not be commingled with the assets of the landlord
(lessor), and will never be subject to claims of any creditor against the lessor. Security deposits
are required to be deposited within the first month of tenancy. The landlord must provide the
name and address of the financial institution holding the account along with the account number
to the tenant (lessee). Any accumulated interest will be paid to the tenant each year, or the
amount may be deducted from the next rent payment.
What form(s) do I need to comply with the lead paint law? Homes built prior to 1978, may
contain lead-based paint and thus, lessees must receive a federally-approved pamphlet on lead
poisoning prevention as well as a disclosure form addressing any known presence of lead-based
paint, or lead-based paint hazards, from the lessor. The pamphlet, Tenant Lead Law
Notification, speaks to the risks and prevention of lead paint poisoning as well as compliance.
The disclosure, Tenant Certification Form must be completed and signed by the lessor and
presented to the lessee for review and signature. Both parties keep a copy of the fully executed
form. If a Letter of Compliance or Letter of Interim Control is available, the tenant, likewise,
should receive a copy for their records. A Letter of Compliance is a legal letter stating there are
no lead paint hazards or the dwelling has been deleaded. Such a letter will contain the date and
signature of a licensed lead inspector. A Letter of Interim Control is also a dated legal letter
signed by a licensed risk assessor. This letter states that the work necessary to make the home
2. temporarily safe, has been completed. The letter is for a period of one year, but can be renewed
for an additional year. At the end of the second year, the owner must fully delead the dwelling
and obtain a Letter of Compliance.
The Attorney General’s Guide to Landlord/Tenant Rights is a useful tool for any homeowner
considering renting their home. www.mass.gov/ago
Jean Kearney McGillick, Realtor jeankearneymcgillick@gmail.com