What Happens to Rental Property During Probate?

I am often asked what happens to rental property during probate. Specifically, what happens to the rental income during the probate process? In today's show, I'm going to answer these questions as well as some other common questions that pertain to rental properties that are part of an estate, such as, "What happens when the tenant stops paying rent but won't move out"? 

 

Learn the ins and outs of how to handle common tenant problems during the probate process.

 

[00:00 - 06:54] What to Do When Rental Income Can't Cover Expenses During Probate

• The probate process involves a decision-maker (executor/administrator)
• Understanding how probate works helps treat money in estate properly
• Once the estate is opened and the executor/administrator is appointed, they can move forward with selling assets in the estate
• If using property management software, rents can continue to be entered into the system

 

[06:55 - 15:13] What to Do if Property Becomes Vacant During Process

• Heirs cannot have access to rental income before probate is completed
• Personal representatives can use the money to pay expenses related to the income-producing property
• If rental income is not enough to cover expenses, money from the estate can be used

 

 

Quotes:

 

"The executor of a probate estate has the authority to file an unlawful detainer. Just the same as if you were managing your own property or property from someone else." - Sharon Vornholt 

 

"An executor can evict someone that ultimately will be an heir to the estate. If it's not on the deed, whatever doesn't matter. The fact is that if they are an heir, it doesn't give them the authority to live in the property rent free." - Sharon Vornholt 

 

 

Links:

 

• Email me at: sharon@sharonvornholt.com 
• Louisville Gal's Real Estate Blog  
• Let's Talk Real Estate Investing Podcast  
• FREEBIE: Probate Investing Starter Kit 
• Probate Investing Course

 

 

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