Renting of Estate Property

[njc]

What is the name of your state (only U.S. law)? New Jersey

My mother passed away and my siblings and I are interested in renting her house (since the housing market is so bad). My question is, can we rent the house as 'the Estate of ......"?
Someone told my brother that we have to form an LLC and sell the house to the LLC.

Thanks!

 

[rowz]

"someone told my brother".....

hoo-boy.

what did the lawyer for the estate tell you.
What does the Executor say abou this?
Has probate been opened?
Who is going to be the responsible party for dealing with the renters and collecting the rent?

You may think long and hard before renting out an estate property....especially at this time of year. It is not quite as easy as it sounds. you all think that the market is going to improve by this time next year? Especially enough to warrant the extra costs and hassles of renting it out?

Am appraisal of the properties value is the best route for you all. NOT A MARKET ANALYSIS by some Realtor, but an honest-to-gosh Fee Appraisal.

If you must, clean out the house, and get it cleaned, and maybe even a paint job and I would look to place it on the makrket right after Easter '09 & see if you can get it sold then when the market generally picks up for the Spring season.

OTOH, given this recession period and very tough employment situation plus inflatino on the horizon you may want to sell it AS-IS ASAP and everyone take their cut and not be a commitee of landlords.

Good luck

 

[HomeGuru]

What is the name of your state (only U.S. law)? New Jersey

My mother passed away and my siblings and I are interested in renting her house (since the housing market is so bad). My question is, can we rent the house as 'the Estate of ......"?
Someone told my brother that we have to form an LLC and sell the house to the LLC.

Thanks!

**A: if the estate executor or adminstrator approves, then yes, you can be tenants.
This is a probate issue.

 

[njc]

Renting an estate property

Okay, maybe I wasn't clear in my original post. We do not want to be the tenants of the property, we are planning on renting it to a friend of my sister's. My question is can you rent a house that is part of an estate? And can you get the proper insurance policies with the estate as the owner?

 

[anteater]

My question is can you rent a house that is part of an estate?

Sure.

But the question is "Why?" Or maybe, "Why not distribute it from the estate to the beneficiaries?" The beneficiaries can still be landlords if they desire.

Eventually, the court is going to ask why the estate has not been closed.

rowz: ...you all think that the market is going to improve by this time next year?

It is some sort of law of nature. Like gravity. Any decrease in real estate prices is only temporary and prices will always promptly return to the highest level attained and begin climbing from that point.