Average Rent Increase in Massachusetts, The Law & How to Avoid
At some stage in their rental journey, most tenants will face a rent increase. That is no different in Boston and the state as a whole. Rent hikes are a normal part of the rental market, which landlords; property managers often need to do it to keep up with inflation, market trends, and property costs. It can be helpful both for tenants and landlords to know the average rent increase in Massachusetts or whatever region they are in to understand what can be expected, and what is relatively fair based on the local market.
Our Boston property management services includes advising landlords and property owners on how best to navigate these tricky waters. Rent prices generally increase over time, but that doesn’t mean there isn’t a careful way of increasing rent that aligns with the market and other rental properties in the region. Being familiar with your local market is very important. Here we will go over a number of topics to consider when thinking about the option of increasing rent (and for tenants, what they can reasonably expect).
Table of Contents
- Why Does Rent Increase?
- How Can Tenants Avoid Rent Increases?
- Average Rent Increase in Massachusetts
- Massachusetts Rent Increase Notice
- Look to BMG for Help
Why Does Rent Increase?
Rent increases can occur for a variety of reasons. So there isn’t a single answer for all. In the past several years the pandemic created situations in which raising rent was necessary. Also, rent hikes may happen when landlords or property managers need additional funds for repairs, maintenance, or major property upgrades.
Many people tend to point to a primary cause of rent increases as the economy mixed with natural appreciation of housing prices, both on a large scale and within individual markets. Over the last few years, especially during the pandemic, rental rates have reached some of the highest levels. At the same time, more people – particularly millennials – are opting to rent instead of buy, driving up rental costs.
While there are a number of factors in the state like these that result in the average rent increase in Massachusetts getting higher, there are a lot of things that tenants can do to try to avoid rent increases in general.
How Can Tenants Avoid Rent Increases?
Unfortunately, it can be challenging to avoid rent increases since you can’t exactly control the housing market or inflation rates. However, changes in the market aren’t the only cause of rent increases. For instance, some landlords charge more for increased rental business costs or extensive property repairs or renovations.
Although rent increases are sometimes inevitable, here are a few ways tenants can avoid them.
- Be a Good Tenant – Being a responsible tenant can have a big impact while renting a property. Landlords appreciate tenants who follow lease agreements, care for the property, and pay rent on time. However, remember that being a good tenant isn’t just about having a positive relationship with your landlord. It’s equally important to promptly report maintenance issues, maintain the cleanliness of the property, and adhere to the lease terms.
- Longer Lease – To potentially avoid rent increases at renewal, consider asking for a longer lease from the start. Long-term tenants are often seen as less of a risk, making landlords less likely to raise rent. If you’re happy with your current home, why not request a lease extension?
- Pay Rent on Time – Landlords appreciate tenants who consistently pay rent on time and in full. By consistently paying on time, you show reliability, which might make your landlord less likely to raise your rent at the end of the lease.
Average Rent Increase in Massachusetts
Rentals in the state, especially the Boston area, remain one of the most expensive in the country. They can be seen as an investment for those still investing, but it is important to note just what you can expect from rental property in the area.
By the end of 2023, the median rent for one- and two-bedroom apartments in Boston was around $2,302. Rents dropped slightly at the start of the pandemic around 2020, but this trend went in the other direction by 2021. As of December 2023, annual rent growth was 3.32 percent. So while the average rent increase in Massachusetts fluctuates, the recent history supports an average increase of around 3-3.5 percent.
Massachusetts Rent Increase Notice
It is important that landlords always give proper notice if there is a rent increase (in Massachusetts or elsewhere). In most places it is instilled in the laws. Just how you do it and how much time beforehand you must give notice before increasing the rent can differ. It can even vary dependent on the type of housing. So being well-versed in the laws in your state is necessary.
If you are looking for examples of notices that could be used, ideally you should get advice from a lawyer to make sure any rent increase notice adheres to local and state laws… Massachusetts rent increase laws are not necessarily the same as in other states. You can also look at MassLandlords.com, which is a non-profit that caters to the Massachusetts real estate market.
Look to BMG for Help
If you are wrestling with rent increase questions, don’t hesitate to talk to a BMG property manager about how we handle things. Our team of dedicated property management professionals is here to help you find your ideal situation and work through sporadic adjustments to rental rates.
If you’re a rental owner and need help setting fair rental prices, we’ve got you covered! Bay Property Management Group offers comprehensive rental management services, from marketing and tenant screening to inspections and maintenance. Contact us today to learn more about our property management services in Boston, Baltimore, Philadelphia, Northern Virginia, Atlanta, Washington, DC., and elsewhere.
