Can I rent a property which is going through probate?

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Ballast

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Hi - my sister passed away and left her house to her two siblings (myself and my other sister). She had no partner or children of her own, and her life insurance has covered the remaining mortgage.

The property is currently going through probate and my sister and I disagree over whether we should be renting it out or having a 'caretaker' reside in it, (which is what is happening at present) who is paying nothing. My sister says we are not allowed to rent it, does anyone know whether that is actually correct? We are in Co Kildare.
Thanks
 
I am not a solicitor, but I believe that the executor can if he/she thinks it is in the best interests of the estate rent the property.

Renting the property creates rights for the tenant and might be unwise depending on the long term plans. Of course the caretaker situation may cause problems also.
 
Ballast said:
The property is currently going through probate and my sister and I disagree over whether we should be renting it out or having a 'caretaker' reside in it,
Click to expand...
Do you plan to sell the house?

How much would it rent for? How much is it worth?
 
Any rent accrues to the estate; and is not available for distribution until probate is granted.

Tax has to be paid.

Exec will be liable for repairs and maintenance.

Tenancy must be registered with RTB.

If you intend to sell when you have grant of probate, your tenant may overhold.

Worse still, legislation currently being discussed could be passed before you come to sell.

That would mean effectively that rental property must be sold with tenant in place which makes it very difficult to sell.

For the above reasons, if the exec chose to rent the property, I would consider they are *not* acting in the best interests of the estate.
 
Who is the executor/ executrix? The final decision is his / hers.

The potential problems far exceed any small potential gains for the estate IMO, see @Thirsty's post immediately above this.
 
To add to the above: look at the numbers

Rent (say) €1 500 per month =18k for a year.
Less tax, maintenance / repairs / lpt / insurance etc - say €10k

Balance = 8k

4k each
Then deduct 33% CAT (you will be over the threshold limit already with the house).

Net figure €2,680

And you might be seriously hampered selling the property as well - not worth it
 
A caretaker can be ideal in the circumstances.

House is kept warm and maintained. Less risk of break-in.

Most insurers will reduce cover if house is unoccupied anyway.

A reasonable deal is usually that the caretaker pays all utility bills.
 
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