Selling an Investment Property in Boston
Selling a Boston investment property starts with one decision: sell with tenants in place or deliver the property vacant. That choice shapes the buyer pool, showings and the closing, where security deposits and last month's rent move to the buyer. Juan Murray reviews rents, leases and timing with owners, then estimates net proceeds from their own numbers.
Get my net proceeds estimateTenant-occupied or vacant?
- Tenant-occupied: appeals to buyers who want rental income from day one. Leases, rent rolls and condition notes become key parts of the listing.
- Vacant: opens the sale to buyers who plan to live in a unit, but timing depends on lease end dates and Massachusetts tenancy law, not just the owner's plans.
Showings in occupied units follow the lease and Massachusetts law on notice and access. Clear, early communication with tenants helps showings go smoothly.
Deposits and rent at closing
Security deposits and last month's rent belong to the tenants and move to the buyer at closing, along with interest owed under M.G.L. c. 186, § 15B. Rents for the month of closing are split by the closing attorneys. The estimator includes a line for deposits credited to the buyer.
Selling into a 1031 exchange
Owners deferring gain through a like-kind exchange need a qualified intermediary in place before closing. Federal rules require the replacement property to be identified within 45 days and acquired within 180 days of the sale. A tax advisor should review depreciation recapture and the exchange before listing.
Lead paint and compliance records
Buyers of older multi-family properties ask for lead paint records, rental registrations and recent inspection reports. Gathering them early avoids delays once the property is Under Agreement.
Common questions
Can I sell my Boston rental property with tenants living there?
Yes. Leases stay in effect after a sale, and the buyer takes over as landlord. Many multi-family buyers prefer occupied properties with documented rents.
What happens to tenant security deposits when a property sells in Massachusetts?
Deposits and last month's rent, with any interest owed, move to the buyer at closing, who then becomes responsible for them under M.G.L. c. 186, § 15B.
How long do I have to buy a replacement property in a 1031 exchange?
Federal rules require identifying the replacement within 45 days and closing within 180 days of the sale. A qualified intermediary must hold the proceeds.
Sources
- M.G.L. c. 186, § 15B, security deposits and last month's rent
- IRS, like-kind exchanges under Section 1031
- M.G.L. c. 111, § 197A, lead paint notification at sale
- M.G.L. c. 64D, deed excise tax
This page is general information, not legal or tax advice. Sellers should confirm details with their closing attorney and tax advisor.
Related reading
July 2, 2026
Selling Your Boston Rental Property With Tenants in Place
Massachusetts law governs every showing, notice, and security deposit when you sell a tenant-occupied Boston home. Here's what landlords must know.
July 22, 2026
Selling a Tenant Occupied Triple Decker in Roxbury
Selling a tenant occupied triple decker in Roxbury means honoring leases, disclosing tenancy, and pricing for investor buyers. Here's the full process.
August 4, 2026
1031 Exchange for Boston Investment Property Sellers
Selling a Dorchester or Jamaica Plain investment property? A 1031 exchange can defer your capital gains tax, but the clock starts the day you close.
Success stories
I had known Juan prior to retaining him as our agent and anticipated a comprehensive, well thought out, sales strategy that fit my and my wife's desires and goals. I was right. While I want to say it was our great preparation that made the process go so smoothly, I think the advice and hand-holding Juan provided and the behind-the-scenes work he did was what actually made our experience exactly what we had hoped for. He also had a great support team that advised us on staging the house and did minor maintenance and clean-up work.
Estimate your net proceeds
Choose tenant status and include deposits you will transfer at closing.
Estimated net proceeds
Your full line-item breakdown will be emailed with your consult confirmation.
This is an estimate for planning only, based on the numbers you entered. It is not a settlement statement, appraisal, or legal or tax advice. Actual proceeds depend on the final price, payoff figures, prorations and costs confirmed by the closing attorneys. All information is deemed reliable but not guaranteed and should be independently reviewed and verified.
Next step: review the real numbers with Juan
A pricing strategy consult starts from the figures above, checks them against recent closed sales, and turns them into a plan. No cost and no obligation.