Maintenance

Inheriting a Family Home

has seen some dramatic demographic shifts over the last few years. For example, the average age of a Marin resident is now over 60 years old. We’re always talking to people who have inherited the home they grew up in. This can create a lot of wealth for you.

You don’t have to live here to know that entering the Marin real estate market can be pricey. If you already have an asset in hand, it’s in your best financial, and often emotional interests, to hold onto that property. Renting the home can be a better option than selling, and our Marin County property management services make it easy for you. We have established strong connections with companies to help pack and store the possessions in the house and can help facilitate this process.

Prandi Property Management provides leadership, resources, and experience to owners and investors renting out their inherited properties. Find out how much you can earn on your home when you choose to rent it instead of sell it. Then, we’ll be here to help you lease, manage, and maintain that investment.

Leasing your Inherited Property: Financial Pros and Cons

If you’re in need of some quick cash, selling the home obviously makes sense. While renting it out is going to earn you stable long-term returns, you won’t see the investment wins right away. When you need a healthy influx of cash to send a child to college, make a down payment on a home of your own you want to buy, or make some other purchase or investment, renting out the home you inherit isn’t your best option.

However, if you’re interested in earning some monthly rent and you have the time to allow your inherited property to grow in value, renting it is a smart financial move. You’ll earn more, and you’ll have a tangible real estate asset as a foundation in your portfolio. You’ll also earn tax benefits. Selling a property often comes with capital gains taxes. Renting it out can actually ease your tax burden. As a rental property owner, you can claim depreciation on your investment, and you can deduct for expenses such as:

• Maintenance
• Property management and other professional fees
• Travel to and from the property
• Mortgage interest and property taxes
• Advertising, insurance, and utility costs associated with your rental

After a few years, you might want to leverage the value of your investment to buy other properties. You can continue to build your investment portfolio or sell the home you inherit through a 1031 exchange, in which you defer the taxes you’d pay when you buy a similar property or properties.

Leasing Your Inherited Property: Emotional Tolls and Triumphs

Selling the home that’s been in your family for years is difficult. It’s hard to let go. That’s another good reason to keep it. You can rent it out and then it’s still in your family. Maybe you’ll even pass it on to a child of your own or a niece or a nephew.

Sometimes, owners worry that they’re too attached. They wonder how they’ll be able to treat the property as a business instead of a cherished family home. We understand. It might be difficult to find a tenant you can imagine sleeping in your old bedroom. You might be critical of how the residents are caring for the rose bushes that your mother always loved to water.

There are many memories tied up in your property, and that’s why a professional Marin property management team is so invaluable. We’ll be the buffer between you and your investment. You can hold onto the treasured family home while we manage the tenants and the day-to-day activities. We know how to treat the property like a business, and while we’ll treat the property like our own, we won’t be as emotionally attached as you are.

If you’re still not sure of how to handle inheriting a family property, contact our team at Prandi Property Management. We can make a difference.

Deciding Between Selling or Renting Your Property?

Real estate in Marin is expensive. If you are relocating out of the area, determining whether to sell your home or rent can be a big decision. It can be difficult to buy back into the Marin market if you sell, while Marin’s rents are very stable. This is largely due to the strength of our public schools, safe neighborhoods and convenience to San Francisco.

Whether your property is in San Anselmo, Corte Madera, Mill Valley, or elsewhere in Marin, we can help you decide. During a complimentary consultation one of our Marin property managers will go over estimated rents, make ready items and what to expect throughout the process. If you do decide to rent, our full-service Marin property management plans make the process easy for you. PRANDI does not handle buying or selling of real estate. Leasing and property management is our only business.