Renovation is often expensive, but can be worthwhile when selling the property due to a higher purchase price. It depends on the individual case and should be assessed in advance by a professional.
If a rented apartment is inherited, the tenancy agreement is also transferred to the heir or community of heirs. The heirs then become the landlords. Inheritance brings with it not only rights, but also obligations. But what do heirs need to bear in mind if they want to sell the apartment, continue renting it out, or claim it for their own use?
Heirs of a rented apartment must agree on what to do with the property. If they cannot agree, there is a risk of foreclosure. This can lead to considerable financial losses and is best avoided.
There are three initial options:
Selling a rented apartment
Communities of heirs often decide to sell a rented property because managing the apartment together is often time-consuming and many heirs lack the necessary expertise. Although a property management company can be hired, if the rental income has to be divided among several heirs, this is no longer worthwhile for many heirs.
As a rule, the sale proceeds of an unrented apartment are higher than those of a rented one, as demand is higher. On the other hand, a rented apartment offers investors the advantage that they do not have to look for a tenant first and can generate rental income immediately after the purchase.
A local quality real estate agent advises communities of heirs on when it is worthwhile to sell a rented property. They also find a suitable investor and sell the apartment at a fair market price.
Sublet apartment
If the community of heirs decides to rent out the property, there are a number of things to consider. All heirs are equally liable for all costs incurred in maintaining and managing the property. The costs are divided according to the so-called inheritance share. In practice, this usually means that one of the heirs pays the costs and claims them back from the other heirs. This can quickly become expensive for the respective heir. In addition, the income from renting out the property must be taxed.
Register own use
Anyone who wishes to terminate a tenant's lease for personal use must prove that they have a legitimate interest. This would be the case, for example, if the landlord wishes to use the apartment themselves or if they can prove that it is needed for their family members or members of their household. Here, too, the community of heirs must be in agreement. In the event of termination for personal use, the statutory notice periods and formalities must be observed.
Work out a strategy with Garcia & Co Real Estate and maximize your chances.
As a new heir, decisions must be made quickly: Do you want to sell the property, continue renting it out, or register it for your own use? Are you wondering how best to handle this situation? Contact us! With over 20 years of market experience, we can provide you with expert advice and support on selling, renting, or using the property yourself. Together, we will find a solution tailored to your needs.
Feel free to contact us, we look forward to getting to know you.