Inherited Home: Should You Keep It or Rent It Out?

Inheriting a home can bring both excitement and a fair share of questions. One of the most common dilemmas new property owners face is deciding whether to keep the home for personal use or rent it out. Both options have distinct advantages, depending on your financial goals, lifestyle, and personal preferences. In this blog, we’ll weigh the pros and cons of each to help you make a choice that’s right for you—and we’ll introduce another option worth considering toward the end.

Option 1: Keeping the Home for Yourself

Choosing to keep an inherited home for personal use can be a straightforward option, particularly if it’s in a desirable location or holds sentimental value. Here are some key benefits and things to consider.

1. No Rental Responsibilities
  By choosing to keep the property, you avoid the duties that come with being a landlord, including handling tenant issues, managing upkeep, and dealing with rental agreements. Living in the home can simplify things and eliminate any stress related to property management.
2. Emotional Connection
  For many, an inherited home is more than just a piece of real estate. It’s a place filled with family memories and sentimental value. If you’re looking to maintain a connection to your family’s legacy, keeping the property allows you to do so while potentially creating new memories of your own.
3. Financial Stability
  If the home is paid off or only requires minor adjustments, it can be a financially beneficial choice. By living in it, you’re essentially saving on rent or mortgage payments, which can improve your financial stability over time. Furthermore, if the property is in a neighborhood with rising values, holding onto it could lead to property appreciation over the years.

Option 2: Renting Out the Inherited Property

If you’re open to managing a rental or see potential for regular income, renting out an inherited property can be a profitable option. However, it’s important to weigh the responsibilities that come with it.

1. Steady Income Stream
  Renting out the property can provide you with a steady income stream, especially if it’s located in a high-demand area. This income can be helpful for covering maintenance costs, property taxes, and even adding to your savings or investments.
2. Tax Benefits
  Renting out a property may also offer potential tax advantages. Landlords can often deduct certain expenses related to the property, such as repairs, maintenance, insurance, and even mortgage interest. Consult with a tax professional to understand which deductions might be available to you.
3. Consider Property Management
  While rental income can be appealing, becoming a landlord comes with its own set of responsibilities. Maintenance, tenant screening, and property management can be time-consuming and stressful. If you’re not able to handle these tasks personally, hiring a property manager could help, but that will also reduce your profit margin.
4. Property Value and Market Trends
  Renting out the home may allow you to hold onto it while the property value appreciates. This way, you’re generating income from the property while its market value potentially grows over time. However, real estate markets fluctuate, so it’s wise to research current trends in the neighborhood and set realistic expectations.

Another Option: Selling the Home As-Is

While keeping or renting out the property may seem like the only options, there’s a third choice to consider: selling the home as-is. At DMV Probate Experts, a subsidiary of Brickfront Properties and Construction, we specialize in helping inherited property owners with a quick, hassle-free sale.

Selling as-is has its benefits. It allows you to liquidate the asset quickly without needing to invest in repairs, renovations, or deal with the responsibilities of property management. This option can save you time, reduce stress, and provide you with cash for other goals.

Get Expert Help with Your Inherited Property

Whether you decide to keep the home, rent it out, or consider selling as-is, DMV Probate Experts is here to support you. We’ve helped countless clients make the best choices for their inherited properties, and we can help you navigate the process, too.

If you’d like to explore your options in more detail, we invite you to download our free eBook, Inherited Property Solutions. It’s packed with information on everything from property taxes and maintenance tips to managing an inherited property with multiple heirs. Visit our website to download your copy today!

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