What about depreciation recapture?

If the property was depreciated as a rental, you may owe depreciation recapture tax on sale. We can connect you with a tax pro for an estimate.

Do I inherit existing leases?

Yes — leases pass with the property. You step into the landlord's role from the date of death until sale.

Are inherited rentals eligible for stepped-up basis?

Yes. Basis steps up to date-of-death fair market value, which can offset much of the depreciation recapture.

Can I use a 1031 exchange?

Possibly, if you plan to keep investing in real estate. We can introduce a qualified intermediary.

Inherited Rental Property

You inherited a rental property. Here's what to consider before deciding anything.

Inherited rental properties come with tenants, tax implications, and decisions that are different from a primary residence. We help you understand your options clearly.

Get a Free Property Assessment

What Changes

When you inherit a rental, you inherit a business.

Lease & tenants

Existing leases continue
You become landlord
Security deposits transfer

Insurance & risk

Landlord policy required
Liability coverage
Tenant screening

Taxes

Stepped-up basis applies
Depreciation recapture on sale
Passive income rules

Sell or Hold

Running the numbers honestly.

Compare expected rental yield (after taxes, vacancy, and capex) to what proceeds from a sale could earn invested elsewhere. For most heirs, the math favors selling — especially when stepped-up basis minimizes the tax bill.

FAQ

Inherited-rental questions.

Yes. We buy with leases in force — no need to evict or wait for vacancy.

Free Cash Offer

Find out what your inherited house is worth — free, no obligation.

Takes less than 2 minutes. No commitment required.

Get My Free Offer

This is an illustrative estimate only. Actual offers depend on property condition, local market conditions, and due diligence. No offer is binding until a formal written agreement is signed by both parties.