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If you’re thinking about investing in rental property, you’re probably doing your due diligence to make sure it’s right for you. Likely, one step in that due diligence is figuring out what expenses you’ll pay. Smart! To help you, we’ve created this list of 4 costs associated with rental property in Massachussetts…
When it comes to investing in rental properties, it’s easy to think of the cash flowing income. But remember that your profit doesn’t come from the gross rent but what’s left over after your expenses. For that reason, here are 4 costs associated with rental property in Massachussetts that you should be aware of…
4 Costs Associated With Rental Property In Massachussetts
#1. Taxes And Fees
One of the costs you’ll have is the property tax you’ll pay, which could include property tax, school tax, municipal taxes, waste and recycling tax, HOA fees, as well as any potential income tax on your rental income. We can’t give you an exact amount that you’ll pay (it depends on a number of factors) but you should be aware of what the taxes will be.
#2. Insurance
Rental property is an asset and you’ll want to make sure that you and your asset is protected. For that reason, you should insure it. Make sure you insure the property and structure against damage (such as fire), as well as have some liability insurance in case your tenant or a visitor hurts themselves. Your tenant should also have insurance on their belongings.
#3. Upkeep
Another cost, which may be harder to estimate ahead of time, is upkeep costs. This includes things like the costs to maintain and repair the furnace, hot water tank, roof, and the plumbing and electrical systems in the house. Upkeep costs would be incurred whether you live in the house or your rent it out, and they’re important to ensure that your rental property is a nice place to live.
#4. Time
This last cost might surprise you but it’s the cost of owning a rental and dealing with tenants. You’ll need to spend some time finding a tenant, doing a background check, making sure they pay their rent on time, and occasionally checking on the property. And, since “time is money”, there is a cost implication to you. It can be minimized, though, with an investment into a good property and a property management team.
Don’t Forget Vacancy and Turnover Costs
Even the best rental properties won’t be occupied 100% of the time. Vacancy and tenant turnover are real costs that can chip away at your profit. In cities like Malden or Everett, where renter demand is high but expectations are too, even a short vacancy period can add up if you’re still covering mortgage payments, utilities, and maintenance. Plus, when a tenant moves out, you’ll often need to repaint, clean, or make small repairs before re-renting. A smart landlord builds in a 5–10% vacancy rate when running numbers. For rental market trends, check out Zillow’s Massachusetts Market Overview.
Legal and Compliance Expenses Add Up
Massachusetts has some of the most tenant-friendly laws in the country, which means landlords have to stay compliant to avoid costly mistakes. This includes understanding fair housing laws, rental registration, security deposit rules, and lead paint disclosure requirements—especially in older cities like Boston, Revere, or Chelsea. Landlords should budget for occasional legal consultations or lease reviews to stay ahead. The Massachusetts Office of Consumer Affairs and Business Regulation offers a solid guide on what’s required for compliance.
Capital Expenses Are Inevitable so Plan for Them Early
While upkeep handles routine maintenance, capital expenses (CapEx) are big-ticket items like roof replacements, HVAC systems, or siding repairs. These don’t happen every year, but when they do, they’re expensive and essential to preserving your property’s value. Investors who budget 5–10% of their annual rental income for CapEx are better prepared to handle surprises. Creating a reserve fund early can give you peace of mind when something big inevitably needs fixing. For more on CapEx planning, check out BiggerPockets’ Guide to Real Estate Expenses.
We Help Landlords and Sellers Navigate Real Estate in Massachusetts
At Ephesus LLC, we’ve worked with property owners across Boston, Revere, Malden, Everett, Chelsea, and Lynn who were ready to move on from rental headaches or wanted to free up capital. Whether it’s a property that needs repairs, has tenant issues, or you’re just tired of managing it, we offer a fair, no-hassle way to sell fast. We buy homes throughout Massachusetts, no fees, no cleaning, and no agent commissions. Call us today for a free private consultation. We’ll walk through your options and help you take the next step with clarity and confidence.
Summary
Before you let this list scare you away, remember: every investment has costs… whether it’s the transaction fees or management fees charged by your stockbroker or mutual fund manager, or whether it’s these 4 costs associated with rental property in Massachussetts. What’s important for you to decide is whether the benefits far outweigh the costs. And when it comes to rental property, we believe they do.