Inheriting a home can be both a blessing and a burden. While it may carry sentimental value and potential financial benefits, managing a property you don’t live in—whether it’s across the country, in a different city, or simply too far away to visit regularly—can quickly become overwhelming. There are utility bills to keep track of, maintenance responsibilities to handle, and decisions to make about the home’s future.
If you’ve inherited a house that you don’t live in, it’s important to know how to properly manage the property, even from a distance. This includes dealing with utilities like electricity, water, and gas, as well as staying on top of maintenance to preserve the home’s value. Here’s an in-depth guide on how to handle an inherited home you don’t live in, and what to do with the utilities, upkeep, and more.
1. Assess the Current Utility Situation
Before making any decisions about the property, it’s important to understand the current utility situation. You’ll want to avoid paying for services you don’t need while ensuring the property is safe and habitable.
Electricity
Start by reviewing the electric bill. If the home is vacant, consider reducing the service to a minimum level to lower your monthly expenses. Many utility companies offer “vacant home” or “basic service” plans that only cover the essential functions like security systems or light fixtures, but leave off more energy-intensive services such as heating or cooling.
However, you may not want to shut off electricity completely if the house has any appliances that need to remain on (such as a refrigerator, security systems, or sump pumps in areas prone to flooding). If you plan to sell or rent the house in the future, you’ll likely need electricity to keep the home in a presentable and functional condition.
Water
Water usage and plumbing concerns are significant in any home, especially one that’s vacant for a long period. The first thing to consider is whether to leave the water running or shut it off. If the home will be unoccupied for an extended period, it’s wise to shut off the main water supply to avoid potential plumbing issues like leaks, frozen pipes, or flooding.
Before doing so, check for any water-related issues such as leaks, standing water, or clogged drains. You might want to hire a plumber to inspect the system, especially if the property is in a region with extreme weather. After shutting off the water, remember to drain the pipes to prevent freezing in colder climates.
Gas
Gas is often used for heating, hot water, and cooking. If your inherited home uses gas, you may want to either keep the service active or shut it off, depending on the situation. Keeping gas running might be necessary if the home has a gas-powered water heater, furnace, or stove, but if the house will remain vacant for a while, turning off the gas is generally the safer option.
When shutting off the gas, ensure the meter is turned off properly and all gas appliances are securely turned off. It’s also a good idea to have the gas lines inspected for any potential leaks before and after turning the gas off.
Internet and Phone
If the house has an internet or landline phone service, you’ll need to decide whether to keep it active. While internet services can be beneficial for monitoring the property remotely (e.g., via smart cameras or alarms), keeping a phone line may not be necessary. Many providers allow you to suspend or downgrade service temporarily, so you can avoid paying for unnecessary services until you’re ready to sell or rent the home.
2. Regular Maintenance and Security: Keeping the Property Safe
Even though you don’t live in the inherited home, it’s essential to keep it in good condition to preserve its value and protect it from potential damage or theft. If you leave the property neglected, you could face expensive repairs or devaluation of the home.
Regular Property Inspections
Having someone check on the home regularly can help catch minor issues before they turn into major problems. This could be a neighbor, a family member, or a property management company. Ideally, you should arrange for someone to visit the property at least once a month (or more often if possible), checking for things like:
- Water leaks or plumbing issues
- Roof damage
- Pest infestations (e.g., termites or rodents)
- Broken windows or locks
Security Systems
If the home has an existing security system, keep it active to protect the property from theft or vandalism. If it doesn’t, consider installing a basic security system or even a smart doorbell with cameras that can be monitored remotely. Some security systems offer smart-home integrations, so you can control the system and even monitor cameras via your smartphone. Security lights, motion sensors, and an alarm system are a relatively small investment for the protection of your property.
Preventing Water Damage
Water damage can cause costly and irreparable damage to a home, especially when left unchecked. Besides turning off the water supply, ensure the gutters and downspouts are cleaned out regularly. Clogged gutters can cause water to back up and seep into the roof or foundation. In colder climates, remember to winterize the home properly by draining outdoor hoses and ensuring the furnace or heating system is functioning to avoid freezing pipes.
Landscaping and Lawn Care
Even if the house is vacant, you’ll want to maintain its curb appeal. Overgrown grass and unkempt landscaping can make the property look abandoned, which may attract unwanted attention or even vandals. Hire a lawn care company or ask a neighbor to mow the grass regularly, trim the bushes, and keep the yard tidy. This will not only improve the appearance of the property but also help maintain the value of the home.
3. Decide What to Do With the Property
Once you’ve taken care of utilities and maintenance, it’s time to decide what to do with the home. Your options depend on your personal goals and the property’s condition, location, and market value.
Sell the Property
If you decide to sell the home, the first step is to consult with a local real estate agent who can help you assess the market value, suggest improvements, and guide you through the selling process. Selling might be the right option if you are not interested in managing a home long-term, especially if the property is far away from where you live.
Before selling, ensure that all utilities are functioning properly, and the home is in good condition. Consider getting a pre-inspection done so you know about any repairs that might need to be addressed before listing. You’ll also need to pay attention to property taxes and insurance during the selling process.
Rent the Property
Renting the home can be a great way to generate income while holding onto the property. However, being a landlord comes with its own set of responsibilities. You’ll need to handle tenant screening, leases, rent collection, and maintenance. If you’re not local, managing these tasks remotely can be challenging, so you may want to hire a property management company.
A property manager can take care of everything from marketing the rental to dealing with maintenance issues and ensuring the home is rented out. If the property is in a high-demand area, renting might be a viable long-term option.
Keep the Property for Future Use
If you plan to keep the home for future personal use or as an investment, you’ll need to budget for ongoing expenses like property taxes, insurance, and maintenance. Keeping the property in good condition is key to preserving its long-term value. This may include periodic repairs and inspections, as well as addressing any problems that arise from time to time.
4. Consider the Financial and Legal Implications
Owning an inherited home comes with certain financial and legal considerations. It’s important to understand your obligations and make decisions that are financially sound.
Property Taxes
Even if you’re not living in the home, you’ll still need to pay property taxes. Research the local property tax laws and be sure to stay current on your payments to avoid penalties or liens. If the property is in a different state or city, you may need to make arrangements for someone local to handle payments.
Homeowners Insurance
Don’t forget to maintain homeowners insurance on the property, especially if it is vacant for an extended period. Some insurance companies offer vacant home insurance policies that are specifically designed for homes without residents. This ensures that the home is protected in case of fire, theft, or natural disasters.
Estate Planning and Taxes
Inheriting a property may come with estate tax implications. If the house was part of an inheritance, it’s wise to consult with an estate attorney or financial advisor to understand any potential tax liabilities. You may also want to explore options like transferring the property into a trust or selling it to minimize taxes or avoid probate issues.
5. Document Everything
Keeping detailed records is crucial when managing an inherited home, especially if you plan to sell or transfer ownership. Document all interactions with utility companies, maintenance records, and correspondence with any property managers or service providers. Also, keep track of any improvements, repairs, or inspections you’ve done to the home. Good documentation can help you maintain control over the property, and it will be useful if any legal or financial questions arise down the line.
Final Thoughts
Managing an inherited home you don’t live in can feel like a daunting task, but with careful planning and proactive management, it doesn’t have to be. Whether you choose to sell, rent, or keep the property, making informed decisions about utilities, maintenance, and financial responsibilities will help you protect the home’s value and ensure it doesn’t become a financial burden. By taking the necessary steps to care for the property, you can maintain peace of mind and make the best decisions for your future.