Inheriting a property can be a windfall or a windstorm depending on what you do with it.
If you’re fortunate enough to be blessed with inheriting a property with little or no financial obligations looming, then you’re off to a promising start. If not, that’s another story we will pursue at a later time.
There are decisions to be made since you want to make the most of the opportunity, so let’s take a look at the potential and the basic first steps.
By first consulting a real estate or property management service for their evaluation of the inherited home, you are doing yourself a favor. You’ll be able to make an informed decision of whether to turn the home into a rental property for an additional revenue stream or renovate it to sell for a profit.
With the assistance of a real estate or property management pro, you’ll have their support for brokering the rental process, finding quality tenants, and coordinating viewings.
Extra Income Opportunities as a Rental
- The windfall of an inherited property can open the door to real estate investing. Rental properties provide a generous revenue stream, especially at a time when high interest rates exist for buying.
- Because rental payments arrive on a consistent schedule, you will know what you can count on each month.
- If you feel sentimentally tied to the property, you can keep a connection with the family member that left it to you.
- If you have the misfortune of a having a mortgage payment that came with the inherited property, you could use the rental revenue to cover the mortgage debt.
- Over time, rental income can add up to be much more substantial than a cash sale.
- Short-Term or Vacation Rentals can generate revenue if the home is in an area that attracts short-term tenants or vacationers.
Perhaps you would like to make the most of your inherited property but don’t want to pursue a future in real estate investment. You’re not alone as almost 40% of small-portfolio owners currently fit this profile.
Another scenario might be that your windfall property is not located near you, so you need help with looking after it on a daily basis. That’s where the help of a reliable property manager comes in. Cousin James Management has been helping absentee property owners in North Texas for nearly 30 years.
Challenges to Renting Your Inherited Property
While your inherited rental property could prove to be rewarding, it probably won’t be without challenges. Things that might be roadblocks include:
- Cost of renovations if needed
- Unreliable Tenants
- Taxes which could include federal, state, capital gains, estate, and inheritance. All of these may differ from state to state.
If you have never managed a rental property you will want the help of a property management company with a reliable reputation such as Cousin James Management. We are family owned and operated and continue to have the privilege of serving customers throughout Dallas/Fort Worth and the surrounding North Texas area.
Whether you decide to rent or sell, let our experienced real estate professionals give you the guiding hand you need. Being an “accidental landlord” as the saying goes does not have to be difficult if you team up with Cousin James Management.
Contact us when you’re ready. We’re here to help!
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