You’ve inherited a rental property. NOW WHAT?
This is Brad from ProbateResource.com. I’m a real estate investor in metro Atlanta and run a real estate solutions company that purchases houses throughout Georgia and even in other states. We specialize in probate and inherited properties. Often, we’re contacted by estates that have inherited rental properties. Many of these individuals have never been landlords before and don’t know how to proceed. Others may have experience but prefer not to continue being landlords.
If you’ve inherited a rental property—or several properties—you might be wondering what your options are. Should you sell them or keep them? Let’s explore those possibilities.
What do you do in this situation? Are you unsure about what to do with the inherited properties? There are many questions to consider, so I want to outline a few important points you need to pay attention to when managing these properties. You’ll likely be dealing with this as part of the estate, especially if you are the executor or administrator.
Lease Agreement
First, check if there was a lease agreement in place.
Was it a written lease, or is it a month-to-month arrangement?
Additionally, determine if there is a tenant who is a family member, as these situations can often lead to the most complications in any deal. Family members who have lived in the property for a long time can create challenges that you may need to navigate carefully. So, now that you have the property, you should either confirm the existence of a lease or determine if no lease was found. It’s possible that there was a lease at one time.
Security Deposit
Was a security deposit ever paid by the tenant? If you have a tricky tenant, they may claim that a security deposit was paid when, in fact, it wasn’t. It’s essential to determine whether a security deposit was ever given and, if so, how much it was.
Remember, if the tenant moves out, you are obligated to return that security deposit.
Now, if you’ve inherited this rental property, you need to decide whether you want to keep the tenant in place, continue being a landlord, or sell the property.
Being A Landlord
If you choose to remain a landlord, you must decide whether to manage the property yourself or hire a property manager. This decision depends on your personality and whether you are comfortable taking on the responsibilities of property management.
Do you want to handle phone calls? Do you want to ensure that rent is paid on time? Are you prepared to issue notices and take care of all these responsibilities? If not, it might be worth considering hiring a property manager.
I recommend getting referrals because while there are many terrible property managers out there, there are also some reputable ones.
Ironically, they all tend to charge similar fees, typically ranging from 8% to 10% of the monthly rent for property management services.
Selling The Property
Now, if you’re thinking about selling the property, should you sell it vacant or with tenants? In my opinion, if possible, you should try to sell the property vacant, without tenants in place. If there is a lease agreement, you’ll need to negotiate with the tenant to either let them break the lease or find another solution to facilitate their move-out.
If a tenant informs you that they are not moving out, there is limited action you can take because they have a written lease agreement that guarantees their tenancy until a specified date. If they choose not to leave, you cannot force them to move. If you have questions about this situation, we would be happy to discuss it with you.
If you are considering selling the property as-is with the tenants still in place and do not want to deal with any complications, we would be glad to make you an offer for the property. Alternatively, if you prefer the traditional route, I am also a licensed agent with One Source in Woodstock, Georgia. I would be happy to assist you in listing the property. These are the solutions I have for you today.
Again, I’m Brad with ProbateResource.com, a real estate solutions company in metro Atlanta that specializes in probate inheritance properties. I hope you find this information helpful. Thank you for your time, and have a great day!
Check this BLOG 👉👉👉 https://www.probateresource.com/blog/what-to-do-with-an-inherited-rental-property/