Owning an inherited property can be a nuanced situation. On the one hand, it can represent significant family assets; on the other, it can also entail responsibilities, expenses, procedures, and decisions that are not always easy to make.
In many cases, the question quickly arises: what do we do with this property? Do we sell it, rent it, or keep it?
There is no single correct answer. Each situation depends on the condition of the property, its location, the number of heirs, the personal and economic needs of each family, and the actual market value of the property.
Therefore, before making a decision, it is important to organize the situation and calmly evaluate all options.
Real estate inheritance is more than just assets
When a property is inherited, it’s not just a real estate asset that is received. Responsibilities related to maintenance, taxes, utilities, the homeowners’ association, and, in some cases, potential renovations or updates are also assumed.
Furthermore, there is often a significant emotional component. The property may have been a family home, a space filled with memories, or a property shared among several heirs. This factor means the decision is not only financial but also personal.
Precisely for this reason, it is advisable not to act in haste. Before selling, renting, or keeping, it is essential to thoroughly understand the actual situation of the property and the implications of each option.
First step: organize the documentation
Before deciding what to do with an inherited property, it is fundamental to gather and review all necessary documentation. This step helps avoid unforeseen issues and provides a clear overview of the property’s legal and administrative status.
Some of the documents that should be located include the property deed, the death certificate, the will or declaration of heirs, documentation related to the acceptance of the inheritance, IBI receipts, community expenses, and, if you wish to sell or rent, the energy efficiency certificate and the current certificate of occupancy (cèdula d’habitabilitat), also known as CHB.
It is also important to check if the property has any encumbrances, outstanding mortgages, associated debts, or any other situation that could affect a future transaction.
Having this information organized from the beginning greatly facilitates the process and allows for more confident decision-making.
What expenses can an inherited property generate?
One aspect often overlooked is that an inherited property can generate expenses from the very first moment, even if it is not lived in or generating income.
Among the most common expenses can be inheritance taxes, municipal capital gains tax, IBI, homeowners’ association fees, insurance, utilities, maintenance, small repairs, or necessary renovations to bring the property up to date.
These expenses can greatly influence the final decision. For example, keeping a property might make sense if the family intends to use it or if it is considered a valuable asset with long-term potential. However, it can also become a burden if the property is vacant, requires investment, or generates recurring costs.
Therefore, before deciding, it is advisable to calculate the real cost of maintaining the property and compare it with the options of selling or renting.
Sell, rent, or keep: how to make the decision
Once the situation is organized, the big question arises: what should be done with the property?
Selling can be a good option when heirs want to obtain liquidity, distribute the property’s value, or avoid future expenses. It can also make sense if the property requires significant renovations, if it doesn’t fit the family’s needs, or if there are multiple heirs with different interests.
Renting can be an interesting alternative if you wish to retain ownership and generate recurring income. However, before doing so, it is necessary to assess the condition of the property, demand in the area, applicable regulations, potential necessary works, and the management involved in having a leased property.
Keeping can be the appropriate option when the property has significant emotional value, when it is expected to be used in the future, or when it is considered a relevant part of the family’s assets. Nevertheless, the expenses and responsibilities of maintaining it must be taken into account.
None of these options is inherently better. The best decision is the one that fits the property’s situation and the objectives of the people who inherited it.
When there are multiple heirs, a shared decision must be sought
Real estate inheritances can be particularly delicate when there are multiple heirs. It is common for not all individuals to have the same needs, expectations, or emotional connection to the property.
Someone might want to sell, another might prefer to rent, and another might want to keep it. Therefore, it is important to communicate transparently, lay out the expenses, the property’s real value, and the available options.
In these cases, a professional valuation can help unblock the situation. Having an objective estimate of the market value allows decisions to be made based on data, not just personal perceptions.
It can also be useful to have external support to help organize the process, explain the alternatives, and propose a strategy that considers all involved parties.
The importance of knowing the property’s real value
One of the most important steps before deciding what to do with an inherited property is to know its actual market value.
The value of a property does not depend solely on its square meters or location. It is also influenced by its state of conservation, floor level, orientation, layout, the building itself, demand in the area, nearby services, the need for renovation, and the actual prices of similar transactions.
A professional valuation helps to understand if it’s a good time to sell, what price the property could fetch, if improvements should be made before putting it on the market, or if it might make sense to keep it and rent it out.
This information is key to avoiding hasty decisions and defining an appropriate strategy.
Prepare the property before putting it on the market
If the decision is ultimately made to sell or rent, it is important to properly prepare the property before listing it.
In many cases, small details can make a big difference: emptying the property, tidying it, improving lighting, making minor repairs, painting, checking installations, or preparing a good photographic presentation.
An inherited property may have been closed for some time or maintain a very personal decor. Updating its image helps potential buyers or tenants imagine themselves living there and can improve the perception of the property’s value.
A major renovation is not always necessary. Often, a good spruce-up and an appropriate marketing strategy can be enough to generate more interest.
Decide calmly and with advice
Inheriting a property can open up many possibilities, but it can also generate doubts. Therefore, the most important thing is not to make hasty decisions.
Organizing documentation, understanding expenses, assessing the property’s condition, knowing the market, and speaking with all heirs are essential steps before deciding.
At Llach Serra & Associats, we support owners and families through these types of processes, helping them to value the property, understand the available options, and define the best strategy for each case.
Every inheritance is different. Therefore, before selling, renting, or keeping, it is important to have a professional, close, and tailored perspective adapted to the reality of each property.