The rental market is in full swing. We’ve had many calls inquiring about the new rental tax. So here is a quick summary of what we know. The rental tax will start at 11.7% this year. This may change at any time. The most important bullet points are as follows but for complete information please visit mass.gov or call Jordan Real Estate to talk to one of our knowledgeable brokers.
For any leases signed after January 1, 2019, an 11.7% occupancy tax will be attached. For this year only, leases where the arrival date is prior to July 1, 2019 are exempt from the tax. This also does not apply to leases longer than 31 days. If a homeowner only leases their home for 2 weeks out of the year, the tenants who rent for those 2 weeks are exempt from the tax. The occupancy tax will be paid by the tenant, just as they would pay if staying at a hotel or Bed and Breakfast. As an agent of the homeowner, we (Jordan Real Estate) will be collecting the tax and remitting it to the state and local authorities. Also just to clear up a common misconception, the tax is not included in the rent, while the commission is included. So an additional 11.7% will be added to the cost of rent not subtracted from it (as the commission is). Homeowners will be required to have a minimum or 1 Million dollars in insurance. They will also be required to register their rental home. As of now there is no such registry to add your rental home to, so it seems we will cycle back to that when the registry is live. Bottom Line is, no one likes paying taxes, but it is what it is and we’re all going to have to get used to it. You can’t bargain with Uncle Sam.
Time is of the essence. Homeowners please keep us updated as often as possible to any changes in your availability or your property in general. Tenants if you haven’t booked your vacation contact us regarding your summer vacation while there is still inventory to chose from.