Inherited a Rental Property? Here's What to Do With Tenants
Your father-in-law died and left a house with renters inside. Before you do anything, you need to know what you're dealing with.
Inheriting a rental property sounds like a windfall — until you realize there are actual people living in it. If your father-in-law just passed and left behind a house with tenants, the first thing you need to figure out is whether those renters have a signed lease or are renting month to month. That single detail changes everything about your options.
A signed lease is a legally binding contract that transfers with the property. You can't just walk in and hand someone a 30-day notice because you inherited the place. The tenants have rights, and those rights don't evaporate when ownership changes hands. Violating that could expose you to real legal liability — and costly mistakes right out of the gate.
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Month-to-month renters are a different story. You generally have more flexibility there, but you still need to follow your state's notice requirements before asking anyone to leave. Some states require 30 days, others 60. Get this wrong and you're looking at a drawn-out, expensive process that eats into any profit the property could generate.
Here's the tradeable angle: don't rush to evict. If the tenants are paying on time and the rent is anywhere near market rate, keeping them in place is cash flow in your pocket while you figure out your long-term plan — sell, hold, or refinance. A vacant property costs you money every single month. Eviction is a last resort, not a first move.
The smart play is to contact an estate attorney and a local landlord-tenant attorney before you do anything. Pull together any paperwork your father-in-law had on the property, talk to the tenants professionally, and assess the situation with clear eyes. Continue reading at MarketWatch.com
