30 Aug Inherited Property
If you just inherited a property, you may be fraught with emotion. During times of loss, the last thing you want to deal with is the property side of things. On one hand, inheriting a house is a generous gift from a loved one. And on the other hand, it is also the beginning of a stressful process. In fact, the financial decisions that come with inheriting a property can be stressful and confusing. Whilst inheriting a home is very much a gift, you have to decide what you are going to do with it. There are three options that beneficiaries typically choose: rent it, sell it, or move into it. Each option has a different process as well as tax implications, so to make things simple, we will discuss the rent it option.
Disclaimer on Inherited Property: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel.
You Inherited A House What’s Next?
If you inherited a house that you do not want to sell or live in, the obvious choice is renting it out. In fact, for some sudden homeowners it is a very easy choice. After all, you can deduct virtually everything you spend on the rental property. Maintenance, utilities, and insurance just to name a few. Remember, almost everything you spend on a rental property is a tax write off. Repairs, maintenance, mortgage interest, you can even write off depreciation. With this in mind, we offer some insight on renting out a home you have inherited.
How To Proceed
If you have inherited a home in a desirable location like San Diego, your best bet is renting it out. The good news is you can generate some extra income by renting out the property. Renting out a property is a good ways to supplement your income. Additionally, it allows you to write off repairs as well as other expenses. However, renting out a home can also be a hassle.
First, you have to have the property inspected and fix any issues. Second, you will need to undertake upgrades that will make the property more appealing to prospective renters. Third, you will need to research comparable rental properties in San Diego and settle on a rental price. Next you will need to establish policies, and don’t forget about the ongoing maintenance and repairs. As well, as gaps in between tenants if you don’t have a long-term renter. Some heirs solve that issue by hiring a property management company. And, some become what is know as an absentee landlord. Although there is nothing wrong with living far away from your inherited property. What you don’t want to do is be the landlord who doesn’t take care of their property. Which is why hiring a property manager is usually the best route for an accidental landlord.
Hiring A Property Management Company
Not only does a property management company take over many of the landlord’s duties, the right company will also do any necessary remodeling, repairs, and maintenance to get it rent ready. So, for anyone sitting on the fence wondering if now is the time to become a landlord, think again! If you do not have the time or resources to oversee a crew for remodeling, repairs, and maintenance, hiring a property management company can be the best thing you ever did. With this in mind, we offer some insight on assessing the physical state of the home you’ve just inherited.
Does the Property Need Repairs?
One of the most important first steps in renting out a property is getting it rent ready. To do so, you may need to renovate areas of the home to make it more appealing to renters. The good news is, by making property improvements you not only enable yourself to attract the right tenants, you also add a few new write offs on your taxes. Renters care more about things, like new carpet, fresh paint, new appliances, and other comforts one would expect when renting a home. First, you need to determine how much you can afford to invest in renovation costs. Then, assess your property to get an idea of how much work needs to be done. Once you have, the next step is deciding to whether or not to hire a property management company to help get the job done.
When In Doubt
For anyone who is uncertain about what to do with an inherited property, you can solve that problem by hiring a property management company. If you have questions about how get your property rent ready, please contact us. We manage single-family homes, condos, and apartment buildings throughout the San Diego area. Whether you are interested in changing property managers, or simply looking to hire a property management company for the first time, Rancho Mesa Properties can help. We take care of all types of residential rental properties including homes, condos, multiplexes such as duplex and triplexes, and even small apartment buildings. Let us manage your rental properties, so you can enjoy your life! Call us today at (858) 576-2176. We will save you time, money, and the stress that comes along with managing your own rentals.