It can be both exciting and scary to inherit a property in Reno. You now own a valuable piece of property in a real estate market that is doing well. You might also be entering the world of property management for the first time, with all of its duties and problems.
If you're new to being a landlord, knowing what to do next will help you get the most out of your investment and avoid making costly mistakes.
Key Takeaways:
- Know what your legal and financial obligations are when you inherit property.
- Get the house ready for renters and learn how to manage them well.
- Use professional property management services to make things easier and more profitable.
Step 1: Confirm Legal and Financial Details
After acquiring a property, the first step is to ensure you understand its legal and financial standing. Did you get the house as a gift, or do you own it with family members? Are there any unpaid property taxes, liens, or mortgage payments?
If you know these things, you won't have to deal with any surprises later. Consulting an estate lawyer or financial advisor can also help you determine the taxes you’ll need to pay in Reno and identify potential deductions as a new landlord.
Step 2: Assess the Property’s Condition
Next, look at the house with a critical eye. Does it need to be fixed or updated before you rent it out? You can increase your rent by making small improvements to the property, such as painting it, updating the fixtures, or landscaping. In Reno's competitive rental market, homes that are well-kept tend to attract good tenants faster.
Step 3: Set a Competitive Rental Price
It takes both skill and knowledge to set the right price for your rental. If you ask for too much, your property might stay empty; if you ask for too little, you might lose money. Look at similar rentals in Reno to get an idea of what the market is like. Even better, hire property management professionals who can do a thorough rental analysis. This ensures that your rent aligns with the home's value and local demand.
Step 4: Understand Your Responsibilities as a Landlord
Collecting rent is just one part of being a landlord. You have to screen tenants, write leases, take care of the property, and settle disputes. It's also important to know what the law says about landlords and tenants in Nevada, as it clearly lays out their rights and responsibilities. Taking the time to learn these duties or hiring professionals who already know them can keep your investment safe and save you from having to deal with legal problems.
Step 5: Consider Professional Property Management
Some landlords prefer to handle everything themselves, but many find that hiring a professional property manager saves them time, stress, and money. A dependable team can handle all the little things that come with being a property owner, like marketing your property, screening tenants, making repairs, and collecting rent.
Ready to Simplify Your Role as a Landlord?
If you inherit a property in Reno, you have a great chance to make money, but you need to plan and get help to be a good landlord. Taking care of your legal, financial, and maintenance needs early on will help you get long-term returns. Dickson Realty Property Management can help you manage your rental in a way that is easy, profitable, and stress-free. Contact Us today to find out more.
Frequently Asked Questions
Q: Do I have to live in Reno to manage my inherited property?
A: No. Many landlords live outside Reno and rely on local property management companies to handle day-to-day operations.
Q: What taxes will I owe on my inherited property?
A: While Nevada doesn’t have a state inheritance tax, you may still face federal tax considerations, such as capital gains if you later sell the home.
Q: Should I renovate before renting my inherited property?
A: Basic safety and habitability repairs are essential, but even cosmetic updates like fresh paint and landscaping can help attract tenants faster.
Q: How do I find trustworthy tenants?
A: Tenant screening is critical. Background checks, income verification, and rental history reviews can help ensure reliability. Professional managers typically handle this process thoroughly.
Q: What if I decide to sell instead of renting?
A: That’s an option, but renting often creates a steady stream of income and long-term equity growth. If you’re unsure, a property management expert can help you weigh the pros and cons.
