Almost all adult children will need to decide what to do with their parents' home, either after their parents have moved into a nursing home or have passed away. Usually, the children will sell the home and use the assets from the sale to pay for the nursing home or distribute the assets to the beneficiaries of their parents' Last Will and Testament. Another option is that a child might move into their parents' home, depending on the family situation.
One consideration, however, would be to keep the house and rent it out to tenants. If you're planning on this, though, you should know that there are some issues that can come up if you decide to become a landlord. The following are 3 tips to consider if you want to rent out your parents' house after they've moved to a facility or have passed away:
Put Everything in Writing
As with any sort of legal dealing, everything that occurs with renting out your parents' home needs to be put in writing and reviewed by a lawyer. This will ensure that you have the appropriate language in the rental agreement to protect you and include items that may be specific to your situation, such as how repairs to the rental property will be handled. Tenants should have a lawyer look over the agreement to make sure it is legal, sound, and beneficial for both parties.
Respect Tenant Rights
Keep in mind that you will not have free reign over the house, even though it was your parents' home and you now own it. The property becomes the tenant's residence once they sign the rental agreement and moved into the home, meaning they have certain rights you will need to recognize. One example is that you often cannot show up and enter the property without giving proper notice, which is typically 24 hours before entering the premises.
Treat Security Deposits Carefully
Experienced Bryan elder law attorneys advise clients who rent out their parents' property to be careful when it comes to security deposits. The deposit must go into a special trust account that names the tenants named as the beneficiaries and the landlord as trustee. The condition of the rental property must also be thoroughly documented before the tenant moves in, which will help to avoid disputes over the security deposit when the tenant moves out.
If you want to rent out your parents' home and have questions on the best way to do it, or you have additional questions about your parents' overall estate, give our Bryan elder law attorneys a call at 979-703-7014 to set up a consultation.