SPOA V.P. Discusses Housing Debate on The Mike Urban Show
by Allison Drescher and Amir Shahsavari
Recently, SPOA Vice President, Amir Shahsavari, appeared on The Mike Urban Show to discuss the challenges faced by rental property owners, tenants, and other stakeholders in housing, amid rising costs and reduced supply. The discussion covered the truth behind rising rents and operating costs, in addition to the controversies surrounding Boston taxes and the broker fee debate. Mike and Amir also discussed how policies like rent control, tenant right of first refusal, and eviction record sealing could impact owners and tenants. In addition, Amir previewed some of SPOA's alternative proposals and what the future may hold for housing in Massachusetts.
by Allison Drescher and Amir Shahsavari
Rising Costs for Rental Owners — Please Tell Us Your Experience
by Allen Hebert
We are aware that operating costs have been rising for rental property owners. If you could please answer the questions below, it would help us with our data collection.
Approximately what percent did your property taxes increase in 2024?
Approximately how much did your property insurance increase in 2024? If you did not increase your deductible, how much would your increase have been?
Approximately how much did your water and sewer increase in 2024?
There is a push to make rental property owners pay broker fees rather than tenants. Would you prefer to pay these agents to show and rent your apartment in all cases?
Where do you see the rental market headed over the next year?
How much have your interest expenses increased where a loan repriced?
Responding to this message will help us advocate for you when speaking to elected officials on Beacon Hill. Please email your responses to askspoa@gmail.com.
by Allen Hebert
Massachusetts Leaders Must Confront Attitude Towards Housing Providers for Existing Rental Supply to Survive
by Allison Drescher
As we head into another legislative session in Massachusetts, we face the same landslide of anti-property owner ideas up on Beacon Hill. It becomes the definition of insanity – doing the same thing over and over, yet hoping for a different result.
It remains death by 1,000 cuts for property owners – the same ideas: Tenant Opportunity to Purchase (TOPA), Rent Control, Eviction Sealing. There are also other impossible ideas, as evidenced by last year’s near miss on having no credit checks for tenants. All regurgitated, once again, for owners to have to plead to our elected officials for our salvation.
“Well-intentioned,” old ideas. Proven repeatedly, not to work.
Now, the vise turns for brokerage fees. Yet another added cost for property owners.
Housing providers have been the villains of the story since the pandemic. It’s the “greedy" property owner’s fault. That’s not the reality of the story.
As evidenced by a recent survey sent to SPOA’s constituency, all our costs are rising across the board. Unprecedented insurance hikes (25-40%). On the materials supply side, an inflationary climate not seen in decades. Unfriendly interest rates are preventing debt restructuring and the unlocking of equity.
Massachusetts’ utility costs are slated for 35% increases. Many older units include heat and hot water in their rents. Many water bills are rising and now include drainage fees. Property taxes are rising. There’s also the higher cost of wages.
So it isn’t the property owners. It’s the simple mathematical equation that everything costs more. However, the property owners cannot absorb all these costs themselves. They must be shared by the tenants.
One of SPOA’s board members points out – why are we the only industry where we are to blame for cost escalations? It’s the equivalent of blaming the grocery store for the price of eggs.
Two other economic issues are at play in Massachusetts - very limited to no new housing supply is being created and municipal budgets continue to grow. The trifecta becomes more restrictive with bad legislative policy.
At some point people begin to make choices.
Is it economically viable to continue to own rental property in Massachusetts? Are the legislative headwinds supportive of the preservation of existing housing, which stands at more than 60% of the rental stock which small property owners provide in the state?
Boston has made regulatory choices that impede new construction of housing units. The increased affordability requirement, now coupled with net-zero requirements on buildings over 15 units. This at least doubles construction costs and into the realm only well-financed institutions like Harvard University can afford. 33,000 units are permitted, without shovels in the ground. New production is at a virtual standstill.
Budgets in Massachusetts have not constricted in decades. There was growth pre-pandemic, followed by unprecedented ARPA, or pandemic relief funding. As these funds have been spent, the only new sources of revenue now come only from the taxpayer.
This will take time to find some equilibrium.
Meanwhile, the legislature should ask itself the following question: Are we going to support and protect existing affordable housing and understand the tenuous collaboration that is an economic reality between those who provide housing and those who need it? This especially true when government can’t set the stage to provide more housing itself.
Or, are we going to continue to do the same thing over and over again, and hope for a different result?
by Allison Drescher
Survey Results on Broker Fee Debate
by Demetrios Salpoglou
Boston Pads recently conducted a survey to gauge perspectives on broker fees in the Boston rental market, with a particular focus on how small property owners might be impacted. Their feedback provides valuable insight into how such a shift could reshape the rental market and affect housing availability.
Property owners want the flexibility to structure their leasing process in a way that best supports their business, and many worry that limiting choices could lead to fewer agents in the market—making it even harder to navigate compliance and secure quality tenants.
Take a look at the results below.
Do you support a change in the law stipulating that landlords that give their listings to brokers be forced to pay the broker’s fee?
📊 91.6% - NO
Do you believe smaller landlords would be disproportionately affected by this change compared to larger landlords?
📊 91.5% - YES
Would this change make it more challenging for you to maintain or improve your rental properties?
📊 82.6% - YES
Do you currently rent your properties through an exclusive agent?
📊 63.3% - NO
If you use an exclusive agent, do you pay the fee?
📊 7.3% - YES
📊 39.9% - NO
📊 52.8% - I Don’t Use An Exclusive Agent
If real estate agents left the industry due to less opportunities – do you think it would negatively impact your real estate business?
📊 76% - YES
If you were forced to rent properties on your own – do you see having greater difficulty in legally compliant paperwork?
📊 67.2% - YES
Should a landlord have the right to suggest any fee structure they choose at anytime?
📊 89% - YES
by Demetrios Salpoglou
In the News: SPOA Resists Wu's Doubling Down on Failed Tax Shift Proposal
by Allen Hebert
After the Massachusetts Senate defeated Boston Mayor Michelle Wu's controversial tax shift proposal that would have harmed Boston's most vulnerable sector, Mayor Wu is attempting to double down on her failed and unnecessary proposal once again, rather than trimming her wasteful budget — the latter of which would have negated the need to raise taxes on anyone. In response, SPOA has continued its advocacy against this proposal for the good of small business owners and all other stakeholders who would be negatively impacted in Boston, as well as state-wide. SPOA's recent statements, which have received media attention, also point to how Boston's lower-value properties are grossly over-assessed by the city in their property tax valuations. The links to those articles are below.
Small property owners urging Boston City Council to reject Mayor Wu’s push to increase business tax
by Allen Hebert