INHERITING PROPERTY THINGS YOU MIGHT NEED TO KNOW
What are your options?
When you inherit a property, there are decisions that you need to make. You may wish to sell it, rent it out or live in it yourself. If you inherit part of a property you’ll need to make joint decisions with the other part-owners.
An increasingly popular option is to let an inherited property out to tenants thereby using the property for investment purposes to obtain a monthly rental income. Should you decide not to sell the property for a while, but rent it instead, particularly if the housing market is going through a slower growth period, you may see a better return in capital growth by holding onto your property and selling it in the future.
If you have no experience in letting out a property, then seeking the advice and help of a reputable local letting agent is advisable. These people will know your local property market and they can give a rental appraisal of your property to help you understand what rental income the property might achieve. They should also be able to advise you on how to get the property up to a standard that will help it to let easily, remember my article on getting your property to ‘Stand Out from the Crowd’. Many also provide both Let and Fully Managed services for you which helps take away all of the day to day strains of letting a property.
If you have an emotional attachment to the property that you’ve inherited then it might be helpful if you think of the letting of your property as a new business venture, which should bring returns for you now and into the future.
As you know, my advice is always to obtain the correct information and advice from professional people or organisations who understand what you’re trying to achieve and can give you the benefit of their expertise. There can be tax implications when inheriting a property, and responsibilities in becoming a landlord, so make sure that you understand what these are before embarking on your property venture.