Should You Rent Out an Inherited House in Texas? Pros, Cons and Questions to Ask

Renting an inherited home can sound appealing: monthly income, and you keep the property. But it's a business, and it's worth weighing carefully.

Potential benefits

• Ongoing rental income
• Possible long-term appreciation
• More time to decide what to do with the home

Potential downsides

• Repairs and updates to make it rentable
• Landlord responsibilities, or property management fees
• Vacancy, maintenance and tenant issues
• Higher insurance costs and a possible change in property tax exemptions
• With multiple heirs, decisions and income have to be shared

Questions to ask

• Does the expected rent cover the mortgage, taxes, insurance and repairs with room to spare?
• Who will manage it day to day?
• Do all the heirs agree, and how will expenses be split?
• Is the home part of an estate that still needs to be settled?
• What are the tax effects of renting versus selling? A CPA can help.

Run a side-by-side

Compare a realistic rental budget with a sale estimate. Some families find that selling and splitting proceeds is simpler. Others decide one heir will buy out the rest and rent it.

Rent or sell? Compare the numbers

Southern Luxe Group can give you a rent estimate and a sale estimate side by side in Austin, Round Rock, Georgetown, Cedar Park and Bryan–College Station. Get a no-pressure plan for the property or call Trina at (512) 629-9050.

This article is general information, not legal advice. Please consult a Texas probate attorney about your situation.