Inherited a Rental Property? Here's How to Sell It

You inherited a rental property. It has a tenant in place, but you don't want to be a landlord. You want to sell and move on. Here's what you need to know.

Inheriting a Rental Property

When you inherit a rental property, you inherit the tenant, the mortgage (if any), and all the landlord responsibilities. Many heirs don't want to be landlords. They want to sell and distribute the proceeds to the estate.

Your Options

Option 1: Keep as a Rental — Become a landlord. Manage the tenant. Collect rent. Handle maintenance.

Option 2: Sell on the MLS — Takes 3-6 months. Buyer must approve tenant. Complicated.

Option 3: Sell to a Cash Buyer — Close in 3 days. No tenant approval needed. No repairs required. Simple.

The Tax Basis Step-Up

When you inherit a property, you receive a "step-up in basis" to the property's fair market value at the time of death. This is a major tax advantage. Consult a CPA to understand how this affects your capital gains taxes.

Inherited a rental property? Alder Heritage Homes buys inherited rental properties, as-is, with tenants in place. Call Connor at (559) 281-8016 for a free offer.