The first thing you need to do when you inherit a home is to understand that the longer it takes to rent it out, the less money will be generated from the home. Assuming the purpose of the inherited home is to generate funds, you want to move rapidly through a couple of steps in order to get a quality tenant placed in the property. Otherwise, you will miss out on several months of revenue that could be generated from the property. For example, if it takes you three months to clean out a property and make repairs and a tenant is not in there, you will be losing three times whatever the monthly rental is. So, if your house can rent for $2,000 or $3,000 per month, those three months will cost you between $6,000 and $9,000. There is an incentive to move quickly through these steps when you inherit a house.
1.Clean out the property. This means cleaning out the interior and the exterior. Remove all the personal belongings you intend to keep, and then clear the debris, trash and items that are found outside. If you are only in town for a few days, I recommend you remove anything of value, such as sentimental items, keepsakes and important documents. Then, instruct that everything else be hauled away and cleared out. Getting the property emptied is the first step.
2.Inspect the property. Once it is cleaned out, you want to walk through the property and inspect all the systems. For example, look at the plumbing system and make sure there are no leaks. Check the irrigation system to ensure the sprinklers work and the timers are set if necessary. Take a look at the locks on the doors and windows to ensure they work. Once you have inspected everything, start your repairs, replacements, upgrades and attention to safety issues. Repairs are any fixes that are necessary, such as the locks and leaks we just discussed. Replacements might include a heating system or something else that is not functioning. Upgrades often include replacing appliances and other things that might be operational but are outdated. Safety items you want to be concerned with are smoke detectors, carbon monoxide detectors and the hot water heater.
3.Begin the leasing process. Once repairs are done, replacements are taken care of and the paint and carpet look good, we can start the leasing process, which will generate revenue for you.
Great Blog! It's always good to know what to expect when inheriting a property. I have written a similar blog about what to look for in a property manager. I have included the link.
Posted by George Trombley on 05/30/2013 - 11:51 AM