Ask a real estate pro: I want to rent out inherited property, but sibling wants to sell. Now what?
Q: My sister and I inherited our father’s townhouse when he recently passed away. We get along OK, but not great. I think it would be a good idea to rent it out, but she is still not sure and may want to sell it instead. Do you have any advice on how to proceed? — Robert
A: You have several paths ahead of you. The best options involve you working together with your sister.
You can decide to cooperate to sell the property, or she may agree to rent it out. In either case, sit down together and work out a game plan.
If you are going to sell it, agree on the significant terms in advance. Decide who will take the lead with the real estate agent and deal with prospective buyers. Discuss how you will deal with expenses when selling the property, such as ongoing association dues and necessary repairs. The townhome will likely need to be spiffed up to get the best price, so decide who will work on that, too.
If you decide to keep and rent the property, you should agree to many of the same issues. Talking through the plan is a great start, but it is best to write things down. A lawyer can help you prepare a “joint-ownership agreement” and help you agree on how you will deal with owning a home together.