If you've just recently inherited a home, you may be wondering if it's worth renting it out to tenants or if you should sell it. As long as it's not sitting vacant, a rental property can provide you with a consistent income every month. In addition, you'll still retain the property as an investment.
Unfortunately, many people who inherit property end up selling it because they don't want to deal with the hassle of renting it out. One way that you can eliminate this problem is to hire a property management company to take on the role of a landlord for you. To learn how a property management company can be a major help when renting out your inherited property, read on.
1. Eliminates the Need to Manage Your Rental on Your Own
Managing a rental property on your own can be complicated, and if you've just inherited property, it's unlikely that you have previous experience managing a rental. You need to find tenants, maintain the property, and follow all of the legal obligations placed on you as a landlord. You may not have the time necessary to research how to rent out the property or have the time to manage it on your own.
Thankfully, property management companies take care of all of the work for you. They'll find tenants, collect the rent, and hire local contractors to repair any problems on the property. They also understand the laws surrounding rental properties, which prevents your rental from becoming a legal liability. When you don't have the time or knowledge necessary, it's best to hire a property management company to rent it out.
2. Helps Your Inherited Property Maintain Its Value
Real estate is typically a very good investment, so it's worth keeping your inherited property. Although the real estate market can fluctuate, property values tend to appreciate greatly over time. However, in order to realize the full appreciation of your property, you'll need to keep it in good condition.
A property management company helps you do this by maintaining your rental property and screening tenants who apply to live there. Good maintenance prevents the property from deteriorating, which keeps its value high. Screening tenants well will ensure that the people who live at the property won't cause damage, as that can significantly decrease its value. By using a property management company, you're maximizing the investment return of your inherited property.
3. Doesn't Charge Exorbitant Fees for Managing Your Property
Finally, property management companies are typically inexpensive when you're planning on finding long-term tenants. Property management services will collect a portion of the rent that your tenants pay each month as a fee for the work they provide. For short-term rentals, such as if you're renting out your home as a vacation rental, these fees can be quite high — this represents the fact that they need to spend much more time finding tenants compared to when tenants reside in your property for an extended period of time.
If you're planning on renting out your inherited property to families, students, or young professionals who plan on staying in the property for years, then the fee charged by property management services is very inexpensive. You'll be able to rent out your property and receive the vast majority of the rent from your tenants without having to do very much work on your own.
If you've just inherited property and are wondering if you should sell it or rent it out, contact property management companies and ask about their fee structure. Renting out the property will be advantageous since the property will most likely appreciate and you'll receive a consistent income from your tenants' rental payments. You'll also be required to do very little work on your own — the property management company will take care of renting out your inherited home for you. Contact a property management company for more information.