Can we rent out a house in probate? Hey, guys. It’s Brad from probateresource.com. At Probate Resource, we’re a real estate solutions company specializing in the world of probate and inheritance properties. We buy houses for cash, or we’ve got a fantastic network of real estate agents all across the country that we work with that are probate and inheritance specialists. Today, I want to talk about renting out a house while it’s in probate. As many of you might have experienced, sometimes a probate process can take a very long time, and sometimes families might choose to rent the house out during that process. Sometimes it might be to a family member, sometimes it might be to a tenant, or sometimes that property might already be rented to begin with. So, how do you navigate that?
Okay. Well, first of all, you need to check with an attorney, because if the estate is receiving rent, that money needs to be paid to the estate and not to you personally as the heir or you personally as the executor or the administrator. That money needs to be paid towards the estate. So, make sure from an accounting perspective that you are keeping these things separate. And again, please speak with an attorney before you go down this route. An attorney is going to know your situation and your local rules about how you should treat that, because as we know, sometimes probate can take a long time. We actually have a deal right now that we’re working on and it’s been in probate for over a year. We’re finally at the finish line about to close it here in the next couple of weeks. It can take a while. So, that house has been sitting vacant for over a year now since the decedent died.
So, if you are thinking about renting this house out, make sure that you’re keeping the accounting clean. Also, make sure that you are letting the tenants know the situation, because if you are ultimately planning on selling that property, the last thing you want to do is to lead a tenant on and believe that they’re going to be in this property long-term, when the reality is, is in six months when you’re done with probate, you might consider selling this property and now this tenant has to find somewhere to live. So, if this tenant is not related to you, it would be in your best interest to let them know what’s going on with the situation. We’ve bought houses where the tenant had no idea that the property was getting sold, and sometimes you got to put yourself in that tenant’s shoes and imagine what if someone did that to you and you were renting a house out and all of a sudden the owner of the house or the estate says, “Hey, by the way, we’re selling the property. You need to move out.” And you’re like, “Well, where am I going to go?”
Especially in the market we’re in today in 2023, where trying to find a rental property is actually very difficult. Supply is very, very low. It’s hard to find a rental. Where are you going to go and are you going to be able to find something in that amount of time? And in many cases, you’re dealing with the financial aspect of a tenant who now all of a sudden has to come up with money to put down a security deposit, whatever, on their new place to go.
Give you a little tip here. One thing that we do when we’re dealing with a tenant that might be a little hesitant to move is, a lot of times the financial reason is the why they’re hesitant, because they don’t have the money to provide first and last month’s rent at their new place. They are kind of freaking out over how they’re going to pay for this because, hey, they won’t get the security deposit back from you until after they move out. They’re already paying you rent. How are they going to pay for this other place? So, one thing we do is we’ll actually offer to pay the security deposit to their new place. If they’re moving to an apartment complex or a new landlord, we will actually sort of front the money to the new place to allow them to realize that they don’t have to worry about that, and it actually makes the process go a lot smoother.
So, if you’re thinking about renting a house out that you’ve inherited during the probate process, there’s a few things you need to think about. And like I said, I would highly advise you to speak to an attorney about that. I hope this video helped you out a little bit. Again, I’m Brad from probateresource.com. We would love to make you an offer on your property. If you want to buy it, we’ll buy it for cash. We make it simple and easy and fast. Or if you feel like you want to go the traditional route and you want to maximize every dollar out of it, we have a fantastic network of real estate agents that we work with all over the country that are probate and inheritance specialists. We handpick these agents, so we’d be happy to refer you to one of those agents if you’d like to go that route. Thanks again for checking out this video. I’m Brad with probateresource.com. Have a nice day. Bye-bye.
Can you rent out a house in probate?
It’s Brad from probateresource.com. Our company specializes in real estate solutions for probate and inheritance properties. We buy houses for cash and also work with a network of real estate agents who are experts in probate and inheritance cases.
Today, I wanted to discuss the topic of renting out a house while it’s in probate. As you may know, the probate process can take a long time, and families may choose to rent out the house during this period. This can be to a family member, or a tenant, or the property may already be rented. So, how do you go about navigating this situation?
Before taking any action, it is important that you consult with an attorney regarding the estate’s rental income. As the heir, executor, or administrator, that money should be paid to the estate and not to you personally. Keeping these finances separate and speaking with a legal professional can ensure that you are in compliance with accounting and local regulations.
Probate can often be a lengthy process, so it is essential to have a clear understanding of your responsibilities.
For example, we are currently finalizing a deal that has been in probate for over a year, with the house sitting vacant since the decedent’s passing. Consulting with an attorney can help you navigate this complex process and avoid any potential legal or financial issues.
So, if you are thinking about renting this house out, make sure that you’re keeping the accounting clean.
Tenant Situation
It is important to inform your tenants about the situation of the property. If you plan to sell the property, it is best to let your tenants know in advance. Leading them on and making them believe that they can stay long-term when in reality, you might consider selling the property after six months, could be detrimental.
If the tenant is not related to you, it is in your best interest to inform them about the situation so they can plan accordingly. It is not fair to leave tenants unaware of the property’s sale, as it could cause them inconvenience and uncertainty. Imagine if you were in their shoes and someone suddenly told you that the property you are renting will be sold, leaving you with no place to go.
It is important to be considerate of your tenant’s situation and inform them about the property’s status. Especially in today’s market in 2023, finding a rental property can be very difficult due to a low supply. It can be a challenge to locate an available rental property within the required timeframe. Furthermore, tenants may be faced with financial pressures, such as having to come up with funds for a security deposit on their new rental property.
If you’re dealing with a tenant who is hesitant to move, it’s most likely because of financial reasons. They might not have the funds to provide for the first and last month’s rent at their new place. This can cause them to worry about how they’re going to afford it since they won’t get the security deposit back from you until after they move out. They’re already paying you rent, so how can they pay for another place? To make the process smoother, you can offer to pay the security deposit to their new place. This way, they won’t have to worry about it, and they can focus on moving. If they’re moving to a new landlord or an apartment complex, you can front the money to the new place, allowing the tenant to realize that they don’t have to worry about the financial burden.
Let’s Connect
If you have inherited a house and are considering renting it out during the probate process, there are several factors to consider. It is recommended that you consult an attorney for guidance on this matter.
I hope this video has provided some useful information. My name is Brad from probateresource.com. We are interested in making you an offer on your property, and we can offer cash for a quick and easy transaction. Alternatively, if you prefer to sell your property through traditional means and maximize your returns, we have a network of real estate agents across the country who specialize in probate and inheritance cases. We carefully select these agents, so we are happy to refer you to one of them if you choose to go this route.
Thank you for watching this video.