Considering renting an inherited house

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    Considering renting an inherited house

    Hi all,

    This is my first post on the thread. My mother recently died and left her house to her 3 children. There is no mortgage on the house, and I am considering the possibility of renting the house out instead of selling it.

    I don't really have the first idea about how everything works, but I'm prepared to learn if I decided to go down that path. Before I make any decisions, I wanted to seek out some advice about whether renting is a good idea or not.

    Does it depend on the size of the house and the part of the country? In other words, is there a way I can find out what the demand for rental properties in my part of the country?

    Also, any links or book for a beginner would be most welcome.

    Thank you in advance!

    #2
    Dear 12th,

    Generally, renting out a property is not a bad way to make a regular, dare I say, "passive" income. Of course, there are risks, there are pitfalls etc, but, unless you get a bit unlucky, you're likely to come out on top.

    Regarding the money that you'd make, you can go to rightmove or zoopla, and look for similar houses in the same neighbourhood. Of course, the size of the house, and the part of the country will have an effect on the price you can command, not to mention the state the house is in. Now, on rightmove etc, it's possible that you don't find a house that is as similar as you'd like, and you'll have to make a bit of a guess as to how it all affects what you're likely to make. There's not much too be done about that online. However, you can also get an estate agent (or three), to come, see the house, and give your their 2p worth. Three estate agents combined should give you a decent picture of what you can expect. An estate agent can then handle all the "tough stuff" for you (in exchange for 10% or 15% of the income), but if you've never done this before, it'd be good to use an estate agent for the first couple of years, while you learn the ropes. There's plenty of information online, and there are plenty of books for renting out properties too (e.g. on Amazon). Now, I haven't had to read one myself in nearly 20 years, so couldn't tell you a good one off the top of my head, but you'll be able to find one for sure.

    To conclude, don't be afraid to rent the house out! :-)

    Hope it all goes well for you.

    Comment


      #3
      That's great! Thank you so much for your reply.

      Comment


        #4
        You are emotionally attached to the property. I am in no way attached to the bricks and mortar that I rent out to strangers and have no sense of loyalty to the neighbours etc. To a degree nothing they do to the property causes me any personal heart ache in that respect. Renting property is fine, can you accept things happening to 'your mums house'?
        "I'm afraid I didn't do enough background checks apart from checking her identity on Facebook" - ANON

        What I say is based on my own experience and research - Please don't take as gospel without first checking the gospel yourself.

        Comment


          #5
          Originally posted by twelthhour View Post
          any links or book for a beginner would be most welcome.
          See the link below.

          http://forums.moneysavingexpert.com/...29&postcount=7

          Comment


            #6
            Yes, I am very attached to the property, which is part of the reason I would feel bad about selling it, and would prefer to rent. But I do take your point, thank you.

            Comment


              #7
              Who owns the property now if inherited by her 3 children?
              Letting is a business and not for the faint-hearted. Gain some basic knowledge/education by joining NLA or RLA.

              Comment


                #8
                Originally posted by twelthhour View Post
                Yes, I am very attached to the property, which is part of the reason I would feel bad about selling it, and would prefer to rent. But I do take your point, thank you.
                In which case, I'd suggest that renting it will be more stressful than you imagine (particularly given the circumstances).
                You get a messy tenant who leaves mum's house in a complete state so it needs to be completely redecorated or dug up the garden, how would you feel?

                You're also balancing each part owner receiving one-third of the rent each month and paying income tax on it.
                While that's a nice top up for other income, is it as usefully life changing as selling the property and having a greater benefit now?
                When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                Comment


                  #9
                  I'd agree with jppkeats. Detach yourself from the house rather than see it change from the house you knew and cherish but still in your hands. 3 'managers' sounds like hard work. I'd be inclined to sell and use your share to purchase a property if you're intent on becoming a landlord.
                  "I'm afraid I didn't do enough background checks apart from checking her identity on Facebook" - ANON

                  What I say is based on my own experience and research - Please don't take as gospel without first checking the gospel yourself.

                  Comment


                    #10
                    My two cents......

                    Be 100% professional an unemotional about the letting - this may be hard if it's your mothers house.
                    Know the law and stick to the law. Don't do anything without a legal contract, don't be tempted with shortcuts.
                    If you go via a lettings agent, then remember to watch the agent as carefully as you would the tenant. Remember that even if you pay an Agent to act for you, YOU are still legally responsible.
                    Even if you get an ar5ehole tenant, be professional & stick to the letter of the law.
                    Show sympathy for any sob-stories, but serve the papers anyway!

                    Good luck

                    Comment


                      #11
                      For the final time
                      Who owns the property now if inherited by her 3 children?

                      Do you now own the property outright after 'buying out' the other 2 beneficiaries, or is it held in all 3 names?
                      Has Probate been granted?

                      Comment


                        #12
                        RLA and NLA offer accreditation courses and I would recommend these as quite a bit of legislation these days and ever changing.

                        Comment


                          #13
                          Originally posted by twelthhour
                          Yes, I am very attached to the property, which is part of the reason I would feel bad about selling it, and would prefer to rent.
                          Originally posted by jpkeates View Post
                          In which case, I'd suggest that renting it will be more stressful than you imagine
                          Agree with that 100%. You have just provided the precise reason why you should SELL this house and cut your emotional strings to it - not let it out. That would be a really bad idea - trust the views of experienced landlords on that.

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