BiggerPockets

I would like to buy rental properties and be a landlord as there are plenty of great deals out there but in a pro tenant state like MA and having a few bad experiences with tenants and warnings from lawyers with horror stories, I am hesitant to go through. Some horror stories included tenants not paying rent and staying up to a year before being removed. Tenants would not pay rent, when you go through with the eviction process, they would call the city inspector, and the inspector would cite any and every small detail, no property is perfect but they'll always find something as minor as it is to write you up. Tenants are allowed in MA to withhold the rent until repairs are made. Once you make repairs, they'll mess it up and call the inspector again. And you can't evict them because it would be retaliatory.

"If the landlord tries to raise the rent, terminate or otherwise change your tenancy within six months of when you contact the Board of Health, join a tenants' organization, or exercise other legal rights, the landlord's action will be considered retaliation against you, unless the landlord can prove otherwise. The landlord will have the burden to prove that your tenancy was changed for reasons other than your having exercised your rights (M.G.L. c. 186, § 18)."

"The Massachusetts Supreme Judicial Court ruled that when a landlord fails to maintain a dwelling in habitable condition, a tenant may properly withhold a portion of the rent from the date the landlord has notice of this breach of warrant of habit-ability. Rent withholding can be a useful tool to force repairs, but it is a serious step and should be dealt with carefully. You may want to get legal advice before withholding your rent since the landlord may try to evict you for non-payment of rent."

Renting in low income housing makes sense as properties are cheap and could be profitable as long as you collect rent, the problem is finding employed tenants who pays rent. I don't mind Section 8, don't mind making repairs as long as they are reasonable but has anyone have experience renting in low income neighborhoods and has been successful? Anyone who have done it in a pro tenant state like MA? Any suggestions, tips, advice etc? Can you be successful in the rental business without losing your shirt?

You must know your local landlord law and you must screen your tenants very carefully. Great tenants don't go bad after they move in. Bad tenants were bad before they moved in. You need to learn how to screen so that they can't trick their way into your unit.

But, seriously, my suggestion would be that you invest in a different state (not NJ). I'm not a huge fan of long distance landlording, but in your case, I'll make an exception.

Originally posted by Eddie Ziv

I would explore the "Sun belt" states. Most of them are more business friendly also find a good PM who speaks softly but carry a real big stick ( Mine have a baseball bat and although to the best of my knowledge, he never used it, it is quite persuasive... :wink: )

So you live in LA and have armed capitalists in other states do your dirty work? I'm shocked Eddie. :wink:

Seriously Eddie's right. What you have is not a fear of landlording but a fear of doing business in the United Massachusetts Socialist Republic. Having been a resident there I know first hand the level of regulation there. Check out New Hampshire and Maine. I heard but cannot confirm that they are much better places to landlord. You're less likely to have a tenant there who thinks he's Denny Crane.

im an investor in ma...i currently have 14 units (on Monday it will be 17) lynn ma, a low income city north of boston...you are right there are great cash flowing properties out there right now in low income areas...there is also a ton of competition for those properties...

i would not be afraid of investing just bc we live in a liberal state, dont let that stop you from being successful in this real estate market, it just might be the best chance of our lives...just take extra precautions to make sure your units are well kept, well lit, clean and safe, make sure you respond to the little things when tenants call w/ complaints...i have had a few evictions and they took a few months, most of the time these tenants never show for court...

i try and show my face around my units at least a few times a week, and drive by almost daily...just dont be a slumlord and have pride in your properties even if your tenants dont...good luck

Originally posted by Eddie Ziv

My approach is not as hypocritical as those who graze the section 8 pasture and then go marching at the tea bags ralley, crying crocodile tears for government intervention... :wink:

Actually it's very much a capitalist principle to take money from the government in exchange for goods/services. It's not like a section 8 landlord gets the check for nothing. They're just another client.

This does bring something up though. As you get deeper into landlording no doubt you'll run into section 8 at some point. In the past year....well literally since the last election....I've had multiple reports from landlords that the entitlement mentality amongst section 8 tenants has skyrocketed, even in red states. Be prepared for this in a heavily blue state like Mass and be very wary of becoming dependent on section 8 to the point that the government is your only source of income. Take their money when you can but be wary of creating dependency on their system.

You are right to be afraid of investing in a socialist state! I wouldn't do it!

If you're serious about starting a rental property business, flyover country is where you want to be. Here, you can evict the scumbags in 30 days (sometimes less). There is still some common sense in the US, but you won't find it where socialism is the form of government.

[[[[......its disheartening that out off all 50 states you single out mine......]]]]

OK, so you don't feel singled out, I recommend that new landlords stay out of San Francisco, CA, Berkley, CA, and Los Angeles City proper (not the whole L.A. area.)