Inheriting a property in Las Vegas is one of the easiest ways to set yourself up as a real estate investor. You can begin earning money on that home without making much of an investment yourself.
Or, you can sell the home and make some money. The Las Vegas real estate market is hot, and if you have no interest in holding onto the asset for the long term, it may seem like a more attractive option to sell the home and move on.
There are a few immediate details you’ll need to take care of while you weigh your options.
For example, did you inherit this property on your own or do you own it with other people? If you’re not the only decision-maker, you’ll have to pull everyone together and decide what to do.
If you’re on your own, though, you basically have three options. You can live in the property yourself. You can sell it. Or, you can rent it out.
You likely already have a home of your own and no immediate plans to move. So, you’ll have to decide if it’s better to rent or sell. Ultimately, the decisions will come down to a few things:
- Your current financial status
- Your future financial goals
- The condition of the property
- The strength of the local sales and rental market
- Whether you want to be a landlord
Maybe you’re emotionally connected to the property. It could be a house you once lived in yourself. Those emotions are going to influence your decision, too.
As Las Vegas property managers and real estate experts, we’re always advising people who aren’t sure what to do with a property that they have no intention of living in.
Here are some of the things to think through as you decide whether it’s better to sell the property or rent it out.
Investigate the Financial Health of the Las Vegas Property
Now that you own the home you’ve inherited, you’re responsible for it.
Before you decide what you want to do with it, take a look at where the mortgage stands. Are there any liens? Is it all paid off? What are the taxes due or coming up?
If there’s a mortgage on the home, you’ll need to continue making those payments. Get in touch with the lender and review the title.
Your title check should also reveal any other debts on or against the property.
Don’t forget to change the insurance policy into your name. You can find your own coverage or keep the current policy intact until it’s ready for renewal. Check with your agent or with the current insurance company.
Have You Thought About Investing in Las Vegas Real Estate?
If you’ve often thought about investing in real estate but you never had the money to make an initial investment, this is a great opportunity. Instead of selling, you should hold onto the property and rent it out. Keeping the asset sets you up as an investor, and you don’t have to buy a property to get there.
Now, you have some leverage. Inheriting a property is a pretty painless way into the investment world. When you keep this home as a rental, you’ll be able to remain active in a growing and competitive Las Vegas real estate market. You’ll have a valuable asset that’s appreciating over time while your tenants pay down your rent and contribute to expenses like property taxes and insurance.
This is the best reason to rent out the property you’ve inherited. You can start a lucrative investment career.
Best Reason to Sell: You Need the Cash
Sell now, and there’s a good chance you’ll get your asking price. Maybe even more.
When you’ve inherited a well-maintained home in a good location, you’re going to sell it quickly, and you’ll likely earn what you’re hoping to earn. This is a great opportunity for you if you need to get your hands on some money.
Not only will selling bring in some quick cash, you’ll also have the benefit of walking away from the home. If this is a property that you never really cared about owning, you might simply want to get rid of it as quickly as you acquired it.
A good real estate agent in Las Vegas can help you set some expectations in terms of how much you’re likely to sell the home for, what kind of work may be needed before you list it, and what you can expect in terms of closing and timelines.
Other Reasons to Sell the Las Vegas Home You Inherited
We know the best reasons to sell and to rent out your property.
What other things might move you towards selling this asset?
- You’re Not Interested in Being a Landlord or Dealing with Tenants
Maybe you don’t think you have the temperament required to be a landlord. You have to know yourself, because renting out a home isn’t for everyone.
It can be difficult, having tenants in your home. Sometimes they make messes. Sometimes they don’t pay rent on time. Sometimes they even cause damage.
Being a landlord isn’t natural for everyone. We get it.
Your tenants may not have the same standards of cleanliness as you do. They may have pets that scratch floors and dig up yards. Perhaps they’ll be less gentle with your property and its appliances and systems, creating faster wear and tear and deterioration. There will be expenses that come with taking care of moving tenants in and moving them out. There might be conflicts and disputes.
Tenants can easily be managed when you work with a Las Vegas property management company, but we know that some people are never going to be comfortable with others living in their property. If you don’t think you can detach emotionally from the home, it’s better to sell it. Renting might cause stress and drama that you don’t need.
- The Las Vegas Property is Older
If the property you’ve inherited is old and in need of a lot of work, you might want to sell it for the highest price you can. Turning an older and deteriorating home into a rental property will cost you money. There may be thousands of dollars in upgrades and renovations that will be required just to prepare it for tenant showings and online advertising. You also won’t earn a lot of money on your rental if you’re spending thousands of dollars every year in maintenance and repairs.
Tenants are looking for new, modern homes. They want energy efficient appliances, hard surface flooring, and updated lighting. If you’ve inherited a property that still has its original materials, an ancient water heater, and kitchen appliances from the 1980s, you may need to do some updates and repairs before you rent it.
Other Reasons to Rent Out the Las Vegas Home You’ve Inherited
So you’ll sell if you’re interested in earning as much money as possible right now. You’ll sell if the home is older and if you really can’t imagine yourself allowing tenants to live in your property.
What are some of the reasons you might want to hold onto the asset, and rent it out?
- Earning Consistent Rental Income
Good tenants are looking for good homes. The rental market in Las Vegas is just as competitive as the sales market. The current and growing rental values might surprise you. If you decide to rent out your home, you’ll find you have a stable pool of well-qualified tenants who are willing to pay top dollar for a great rental home.
It’s a good time to sell but it’s also a good time to rent out your home. You can expect high rents now and into the future. The rent you earn every month will contribute to the mortgage, the expenses, and the overhead. Once the mortgage is paid, rent will be money in your pocket.
- Renting Out a Property Comes with Tax Benefits
Selling is great until you’re faced with the tax bill.
There’s almost certainly going to be a capital gains tax when you sell your home. Renting out the property can help you avoid that tax exposure. Owning a rental home also provides a lot of tax benefits:
- You can deduct the home’s depreciation, which is pretty generous by IRS standards.
- You can deduct any expenses associated with the home, such as maintenance and professional services like accounting, legal fees, or property management.
- You can deduct the interest on your mortgage.
- You can write off any travel expenses when you need to visit the property.
These write-offs help to reduce your overall tax liability, and are a great reason to keep your property instead of selling it.
Las Vegas Property Management
If you do decide you’d rather rent out the home than sell it, you don’t have to worry about the day-to-day landlord tasks. You can hire a property manager.
Las Vegas property managers can help you effectively lease, manage, and maintain your rental property.
There’s no need to worry about marketing and showing your home, finding a tenant, collecting rent, making sure the home is well-maintained, or dealing with legal complexities and liability. Property managers do this every day for owners just like you. When you decide to rent out your property, contact a Las Vegas property manager right away. You’ll need to know how much rent you can expect to earn and what you may need to do to prepare the property for the rental market.
If you’re still struggling with this decision, we’d love to help. Contact us at Strawberry Property Management Las Vegas.