We have a property for sale but have been approached by a person willing to rent it. I have a few questions. Do I have to report the rent as income? It is my parents house that my siblings and I own as part of the estate. Do I have to do the rent credit thing for taxes? We dont owe any money and right now just paying the utilities to keep the place liveable while we try to sell. I am thinking if I rent it the couple would be possible buyers. Do I put a portion of rent towards a down payment? I am totally clueless as to the process of being a landlord but exploring all options to sell since the realtor hasnt sold it and has been on the market for a year. Any recomendations or pros / cons would be helpful. Thanks
Becoming a landlord?
- Thread starter pitt
- Start date
Talk to your realtor about handling the lease. Some are too lazy to do it but alot will. Or, inqure with him/her about using a management company to handle everything. Being in an estate, whoever is the executor would have to be the one to handle it (paperwork wise) and, depending on the situation, it may have to get court approval to revise the estate to convert the property to an investment (rental). Talk to the attorney to see if that would even be an issue. Normally, problems only arise when not all siblings agree.
If they are going to eventually purchase the home, sell it on a land contract (I assume they have those in Mn.). Again, the real estate agent can handle all of the paperwork on that. That will put them on the title to the home and they pay you just like a rental situation however part of the payment will go towards paying off the balance owed from the agreed upon sales price.
Regardless of which way you go, make sure everything gets cleared through the attorney who handled the estate.
Estates and trusts really can complicate these situations but, if it's all done right, it will make your life alot easier in the future when the title/deed to the property does transfer to a new owner.
Good luck!
Dave
If they are going to eventually purchase the home, sell it on a land contract (I assume they have those in Mn.). Again, the real estate agent can handle all of the paperwork on that. That will put them on the title to the home and they pay you just like a rental situation however part of the payment will go towards paying off the balance owed from the agreed upon sales price.
Regardless of which way you go, make sure everything gets cleared through the attorney who handled the estate.
Estates and trusts really can complicate these situations but, if it's all done right, it will make your life alot easier in the future when the title/deed to the property does transfer to a new owner.
Good luck!
Dave
freezinbevr
New member
Pitt,
We use a realtor who has made this his specialty. Fair prices and will do the management as well if you'd like. Give me a call. 612-282-2352
BTW- Hows the system running?
Brad
We use a realtor who has made this his specialty. Fair prices and will do the management as well if you'd like. Give me a call. 612-282-2352
BTW- Hows the system running?
Brad
Buy out your siblings and keep it as rental. Or sell it. It won't work splitting with siblings. Trust me
It's been on the market over a year. They aren't going to get what they need for it. They either all need to agree to a short sale and split the proceeds, rent it out or sell it on a Land Contract.
If you have siblings that are not willing to get on board with any of the above mentioned plans, your in trouble.
Get the attorney to revise the estate regarding this house so that all parties agree to the outcome. Good luck and make sure you make them split the legal bills with you which will also need to be part of the legal revision to the Estate.
Dave
why is it not selling?
over priced?
way out dated look?
bad location ?
issues with structure?
homes priced right are not sitting around long now days.
we go in to lots of old dated homes that don't move.the owners spend 7 to 20k and relist usualy sell for 2x money spent or more over old listing price.
if cash is tight some contractors will work out a deal with fair market as is and what it sells for after remodel - supplies and labor.
works out well for both.
we only do it if real money to be had and a realistic owner not living in 2007.
we just got done with one that was 4sale for 8 mo no bites.
put 11g in sold in 3 days 35k over last listing .
at minn get a non attached fresh set of eyes in the place to give u a honest opinion on why it is not moving
over priced?
way out dated look?
bad location ?
issues with structure?
homes priced right are not sitting around long now days.
we go in to lots of old dated homes that don't move.the owners spend 7 to 20k and relist usualy sell for 2x money spent or more over old listing price.
if cash is tight some contractors will work out a deal with fair market as is and what it sells for after remodel - supplies and labor.
works out well for both.
we only do it if real money to be had and a realistic owner not living in 2007.
we just got done with one that was 4sale for 8 mo no bites.
put 11g in sold in 3 days 35k over last listing .
at minn get a non attached fresh set of eyes in the place to give u a honest opinion on why it is not moving
I would say and I have said it all along, it is location, small unincorpated town in WI. No real jobs in the area unless you want to buy the bar in the same town and walk to work. No structure isses, not overpriced by any means, we have dropped it in price 17k from the realtors suggested original price, maybe a little dated but nothing we needor want to do as we are leaving that to the new owners. Huge yard, super huge house. If I could afford to buy out my siblings I would in a minute and be a landlord (wife lost her job in Dec due to cutbacks and is only temporary where she is working now and still looking). Not a lot of money to be made when we split it up at the end, just want to be done with running out there for care, etc so we dont want to spend any money on it unless we have a signed contract to purchase and then I will open the flood gates if need be. I am the executor and it is a long story with siblings that have been cut out of the will, or dont work, or live too far away, or dont really care. I have spent the last 20+ years helping my parents and that why I was chosen to be the one in charge
Thanks Dave for the insight and suggestions. We are getting together for a family funeral this weekend and the 2 sisters that are reluctant are staying at my house so it will be discussed this weekend for sure. I am sure if it comes down to it there will be hurt feelings but...
yep the small town thing is the killer .
I was assuming it was in metro based on your location.
if u do a cd get a lawyer to make sure that thing is iron clad on your part. 1 day late u keep it all end of story.
I can tell u if u want to get in the landlord game #1 turn off the warm heart it is a business like any other no money no merchandise. end of story.
u will get every sob story ever told 3 times. no money get out. and dont worry the judge is always on your side no pay no stay
I was assuming it was in metro based on your location.
if u do a cd get a lawyer to make sure that thing is iron clad on your part. 1 day late u keep it all end of story.
I can tell u if u want to get in the landlord game #1 turn off the warm heart it is a business like any other no money no merchandise. end of story.
u will get every sob story ever told 3 times. no money get out. and dont worry the judge is always on your side no pay no stay
Grew up in WI but have now lived here in MN for longer than I lived there (but still a Packer fan, thought I would throw that in just for giggles)
Thanks for the advice, yup I definetaly heard em all when it comes to stories and you are right "no pay no play" just not sure what to do, I dont know if I want to be an absentee landlord or just wait for the right person to come in and say heres our cash offer and be done with it
yamahauler
Active member
If you do rent, I have 2 friends that have gone with agency's. One is going on 6 yrs and the other 1 yr and it has worked great for them.
Best of luck.
Best of luck.
After a family meeting with 3 outa of 4 present, we have too many questions/concerns to become landlords at this time in the sale process, but good news nonetheless. We did have a showing on Saturday and just hung up the phone with realtor saying a 2nd showing is coming! We can only hope this turns to something in the sale arena. Thanks for the suggestions and well wishes.
arcticgeorge
New member
I 2nd on the buying siblings out because it can get ugly when it comes to money........... I was friends with a guy who split $150,000 between him and his sister when thier father died, problem is they screwed 4 other siblings. His brother lives next to me, he and the others hate the 2 that got the money...........Also try to examine the most responsible people to rent it. this guy that rents them in Ironwood several times people would move in, pay the rent like twice and then ride a year of free rent out while the legal system process the case.
EXCESSIVE FORCE
New member
What's the name of the town/location?
chords
Active member
Having a property that is titled in 4 names or even a trust that requires 4 signitures of siblings to sell is a hornets nest with upkeep (you know that part) and with ongoing tax consquences and possible capital gains.
Focus on selling and getting out from under the emotional, financial and family strife and move on and be done with it.
Focus on selling and getting out from under the emotional, financial and family strife and move on and be done with it.
This sounds scarey similar to something I know of, some can be greedy vulchers.
I agree sell, I would even below what I think I can stand.
Cause I know all future problems/costs would be mine, no matter how even it's should be shared.
But they will all be there hands out, when it's time.
I agree sell, I would even below what I think I can stand.
Cause I know all future problems/costs would be mine, no matter how even it's should be shared.
But they will all be there hands out, when it's time.
It is in Clear Lake WI as far as zip code, but it is in Reeve WI which is 9 miles east of Clear Lake.
I do have it posted in the misc section of the for sale thread.
Yes siblings can be a major pain in the arse, but I am trying to be civil with all. 4 are titled owners and a 5th has been written out of the will. We do have money that will pay taxes, utilties, upkeep, etc but I just want to be done with the whole thing and move on. Not a large amount of money once it sells and split but I just want to be done with it
I do have it posted in the misc section of the for sale thread.
Yes siblings can be a major pain in the arse, but I am trying to be civil with all. 4 are titled owners and a 5th has been written out of the will. We do have money that will pay taxes, utilties, upkeep, etc but I just want to be done with the whole thing and move on. Not a large amount of money once it sells and split but I just want to be done with it