Renting An Inherited Home

Renting An Inherited Home

Renting an Inherited HomeSome Of The Pros And Cons Of Renting An Inherited Home

Although it may have never been a part of the plans, very often one might start to think about becoming a landlord when they suddenly find themselves inheriting a home. After all, without you losing the home entirely, you have a new way to supplement your income. You should be cautioned however prior to entering into any rental that you must become aware of the various taxes, fees and legalities that may be involved with the process. The truth of the matter is that for some people, renting an inherited home can be a great new opportunity, but you also should be aware that for others, it can become somewhat of a money pit!

Why Rent It Out?

There are a few options you will discover that you have when inheriting a home. You might

  • Rent the home
  • Sell the home
  • Occupy the home
  • Disclaim the home

There are a number of different reasons that apply to all of these options above. For instance, the home may require extensive repairs, the mortgage and the taxes may be wildly beyond belief and you may already have your own home. In addition, there might possibly be some dispute going on involving other siblings and renting of the home in question may be a viable solution until the dispute is settled. Of course, if someone simply does not want to lose the home by disclaiming it or selling it, they may in fact consider it’s rental and gaining some additional income from it. One should be aware that there are many positives and negatives involved with this choice and before renting to prospective tenants, they should take the time to weigh these out.

The Positives Of Renting It Out

Included in the benefits of renting the inherited home are

The Negatives Of Renting It Out

Some of the possible disadvantages involved with renting the inherited home may include

  • You may be required to pay a property tax rate which is higher
  • You might have to, in your name, refinance the home
  • Any damages or repairs caused by tenants will be your responsibility
  • If eviction becomes required, it can be a time-consuming and costly procedure

Can I Sell The Home?

The answer to this question is yes, and this is the course many people take so they will avoid the issue of mortgage payments and property taxes that are due. There are others who simply have no need at all for an additional home and still others that do not want to get involved with haggling over issues with other siblings involved.

Should you have an interest in selling a home, contact Legacy Home and Property and ask to receive an all-cash quote. We are also happy to answer any questions you may have and to assist you in dealing with the matter.

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