Assessing the Costs of Keeping an Inherited House
Updated:
February 19, 2019
Written by:
Abhi Sreerama
When you inherit a home, it might seem great at first. If you decide to keep an inherited house, you need to assess the costs that you will regularly incur. You can then create a budget to keep the house in good condition for years to come.
Property Taxes
The inherited house is likely paid for in its entirety. However, you will still need to pay the property taxes. These will be based on where the home is located and what the overall value is. It’s an important expense to assess as you don’t want to miss paying these taxes.
In the event you don’t pay the property taxes, the city or county could seize the property from you. Since you don’t want to lose property that should stay in the family, you need to identify the tax bill so that it gets added to your budget.
Homeowners Insurance
Even if you don’t plan on living inside the home, it’s important to have a homeowner’s insurance policy. This will protect against the dwelling, the belongings inside, as well as various liability claims.
You can’t go without homeowners insurance for too long because a lag in coverage could end up costing you more – or prevent you from filing a claim should something happen.
Whether there’s a fire, a storm, or something else, the insurance will allow you to file a claim. The insurance company would then be responsible for paying for the majority of the repairs/replacements instead of you.
Fixes and Repairs
Things have the potential to go wrong, even if no one is living in the house. You could end up with a termite problem, sewage backflow, roofing issues, and much more.
Whether you plan on keeping the home or eventually selling it, the fixes and repairs need to be done. You should plan on budgeting a certain amount of money in for repairs and maintenance every year. The age of the home and its overall size will determine how much you budget.
Some repairs could be done on your own, but you also have to be honest about what your capabilities are. It might be necessary to call in professionals when it comes to plumbing, electrical work, and other problems.
Remember, too, that some problems are going to get worse if you don’t address them right away. If you’re not living in the home, then it’s often best to rent it out or at least get a property management company in Missouri City to look after it so you know about the problems the moment they show up. Otherwise, you could encounter not only leaks but mold and mildew. Basic repairs are affordable but when it starts to involve tearing out damaged drywall and flooring, it starts to get a lot more expensive.
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Property Management
If you are keeping an inherited home but already live elsewhere, the easiest thing to do might be to rent the property out to a tenant. In this case, you will want to consider property management as it will ensure that you are choosing the right tenants and that your property is being managed effectively so that you don’t have to be bothered by all of the details.
The cost of property managers in Missouri City is minimal in comparison to what various repairs might need to be done if you don’t have someone conducting regular property inspections.
With the help of a property management company, you can also vet the tenants so you know who is going to be moving into the property. You don’t want to encounter problems with the tenants as that’s when it’s likely to cost you more in repairs.
Ultimately, you have to do what is right when you inherit a home. When you decide to keep it, there are going to be expenses you have to incur. Otherwise, the house is going to fall apart, be seized by the county, or a combination of the two.
Whether you are solely responsible for the inherited property or there are multiple family members involved, a budget needs to be established. You also need to take the time to identify all of the different expenses you have to deal with. Some are going to be annual, such as property taxes and homeowners insurance. Others are going to be “as they happen,” such as various repairs that need to be done.
You need to make the decision as to whether you are going to live in the house, put it up for rent, or choose to sell it. This will help you to determine what needs to be done for the long haul.
To learn more about how property managers in Missouri City can help, call us at Keyrenter Houston today. We can talk to you about what we’re able to do and the various expenses you can anticipate through the year.
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