Converting Your Rental Income Property Considerations to Make Before Converting to a Condominium

A new generation of young professionals is looking for a means to enter the housing market. Condominiums are an attractive price point and form of ownership for such new generation. To meet this demand, owners of rental housing are, in increasing number, considering converting their currently rented properties into condominiums, to be sold for a premium. A number of considerations enter into this decision, not the least of which is the applicable law.

In 1983, the Massachusetts legislature passed The Massachusetts Condominium Conversion Statute. Broadly speaking, it creates hurdles for owners to jump before converting their property to condominiums, as well as consequences for landlords who fail to jump these hurdles.

What Does This Mean?

Any owner who currently rents residential housing is familiar with the mass of law governing the landlord-tenant relationship, but a set of rules apply on top of those when an owner decides to convert a rental property to condominiums. Aspects which were formerly limited only by the landlord-tenant law become governed by the Condominium Conversion Statute, which restricts a landlord’s acts to a greater degree. The law also introduces new and different restrictions on landlords and their relationship with their tenants.

Restrictions on Landlords

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Comments

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