Rent Money

Q: “My year round rental tenant just told me that rent is not legally due until the end of the month. When is rent legally due in Massachusetts?”

A: The word legally in the question makes the answer pretty straightforward. If it were worded, “When is rent due in Massachusetts?” I’d respond by asking you to check your lease agreement with your renter.

Typically, leases state that rent is due on the first of the month unless a renter (Lessee) has a special agreement with the landlord (Lessor). However, per the Tenant/Landlord laws that governs this relationship in Massachusetts, rent is not considered late until after the 30th of the month.

This isn’t license for your tenant to pay rent on the 30th. The written lease agreement should state the date that rent is due. If you have an agreement with your Lessee to pay the rent on the first of the month, that is when it is due. If the Lessee does not, you reserve the right to start eviction proceedings as soon as the second of the month. If your Lessee pays rent consistently late you may be inclined not to renew the lease.

As a Lessor, knowing the laws in Massachusetts as they pertain to year round rentals is important. Please check with your attorney for any legal advice on this matter. You may also want to visit www.lawlib.state.ma.us/landlord.html for more information on the Tenant/Landlord Laws in Massachusetts.

Savings on Capital Gains?

Q: I am thinking of selling a condominium that I have used as rental property and have heard that I can save on capital gains taxes with something called a 1031 exchange. What can you tell me about this?

A: 1031 exchange may also be known as a “like kind” exchange or tax deferred exchange. Section 1031 of the IRS code allows you to defer capital gains tax on a property that you are selling by exchanging that piece of property for another one that is of equal or greater value. Both properties must be used in trade or business or held as investments. In essence, the 1031 exchange allows you to put your profits to work for you.

The first and most important step is to consult with your tax, financial and legal advisors to determine if a tax deferred exchange is appropriate for your circumstances. Secondly, during the contract process of selling your property, you would disclose your intentions and ask for the Buyer’s cooperation in the process. There is no cost or disruption to the Buyer. You would choose a Facilitator, a third party who would coordinate the transfer. All deposits and proceeds for the transaction will be held by an Escrow Company. These monies are never in your possession. Once the property transfers, you have 45 days from that date to identify a new property to purchase, which then must close within 180 days of the transfer of your first property.

The Team at Atlantic Bay Sotheby’s International Realty has assisted many clients with Like-Kind Exchanges. Make us your first call, and we will put you in contact with all of the necessary experts to guide you through the process.

Up in Smoke

Q: I just purchased a condominium in Provincetown that has a terrible odor of cigarette smoke. The previous owner lived in the townhouse year round and smoked indoors. What measures can I take to eliminate this smell as it is everywhere?

A: Here are few basic steps you may want to take in order to rid your house of the smell of cigarette smoke.

1. White Vinegar. Start by filling small bowls (cereal or soup) with white vinegar and placing them in each room throughout the house. You may want to place multiple bowls in rooms that have a stronger smell. Open all the windows. Let these bowls sit for up to one week. Empty and repeat the process. If it is winter, you may want to open the windows slightly to avoid too much heat loss. Otherwise, open the windows wide.
   
2. Paint the walls and ceilings in the rooms that have the strongest odor. Be sure to use an odor eliminator primer. Also, wash the walls and ceilings with soap and water prior to painting.
   
3. Remove all carpets, padding and area rugs that may have been left behind by the previous owner.
   
4. Remove cloth shades and window treatments.
   
5. If the property is heated or cooled by forced air, replace all HVAC filters with brand new ones.

If these simple measures do not remedy the issue, you may have to take more drastic measures. This could even mean replacing the sheetrock in the room that has the strongest smell. However, be patient when implementing these measures as it may take awhile for the lingering smell of smoke to dissipate.

Seasonal Cottages in Truro and Provincetown

Q: I have been looking at condo cottages in Truro and Provincetown and I notice that many of the descriptions note that the units are seasonal. What does this mean?

A: The town of Truro has a zoning by-law that limits the use of condominiums to seasonal use only. The dates of permitted use are April 1 through November 30. You may not occupy your unit between December 1- March 31. Often times the association will drain the water and turn off the utilities during this period. There is an exception included in this by-law which allows for one unit in each complex to be lived in year-round as a “manager’s unit.”

By contrast, there is no law against using property year-round in Provincetown. If a unit is noted as “seasonal” and it is located in Provincetown, it is likely that the unit is not insulated or that the pipes are not deep enough in the ground to avoid freezing. Many of the cottages in the beach point area of Provincetown are seasonal simply because they were never built with year round use in mind. Each association can decide for itself how the property will be used; a seasonal association in Provincetown may vote to change to year round, but they would have to make sure that the utilities and the units themselves are sufficiently insulated for year round use.

For a complete list of COTTAGES for sale in Provincetown, Truro and Wellfleet, email us: info@provincetownrealestatenow.com.