Three common ways people end up here
Inherited homes come with questions about title and family. Before anyone can sign a lease, the person or estate with legal authority over the home has to be clear. If probate is open, the executor or administrator may be the one who can lease it. If several siblings now own it together, all of them should agree in writing on renting, who makes decisions and how money is split. A probate attorney can tell you who has the authority today.
Moving away, whether for work or a military move, usually means keeping a home you like and may come back to. The questions are whether the rent covers the costs and whether you want to manage from a distance. Our guide for military families on a PCS move covers the service-member side.
Couldn't sell is the third path. Rent can carry the home while the market changes, but it also commits you to a lease term. If you still plan to sell, it is worth timing the lease end for the season you would list.
Deciding whether to rent
Start with numbers, not hopes. Get a rental analysis to learn what the home will realistically rent for, then list every monthly cost against it.
- Mortgage principal and interest, if there is a loan.
- Property taxes at the non-homestead level, not what you paid while living there.
- Landlord insurance, which usually costs more than a homeowner policy.
- HOA dues.
- Repairs and maintenance: AC service, plumbing, appliances. Older homes need more.
- Vacancy: a few weeks between tenants each time someone moves out.
- Management, if you hire it. Rothrock charges no management fee while the home is vacant.
- Larger items to save for: roof, AC replacement, water heater, flooring.
Insurance changes
A homeowner policy assumes you live in the home. Once a tenant moves in, it usually no longer fits, and a claim could be denied. Call your agent before the lease starts and move to a landlord or dwelling policy that covers the structure, your liability, and lost rent if the home becomes unlivable after a covered loss. The tenant's belongings are theirs to insure; the lease should require renters insurance, and Rothrock collects proof before move-in.
For an inherited home that has been sitting empty, tell the insurer now. Many policies limit coverage for homes left vacant for a long period.
Tax changes
Property tax goes up first. A rental has no homestead exemption and loses the 10 percent cap on taxable value, so the bill can jump the year after you move out. Tell the appraisal district in writing that the home is no longer your homestead.
Income tax changes too. Rent is income, and expenses such as repairs, insurance, property taxes, management and depreciation are generally deducted against it. Selling later can be affected: a former residence may lose some or all of the federal exclusion on gain if it is rented too long before sale, and inherited homes have their own basis rules. These are questions for a CPA, and they are worth asking before you sign a lease, not after.
Check the mortgage and the HOA
If the home has a loan, read it. Many owner-occupied loans expect you to live in the home for a set period after closing; after that, renting is usually allowed, but confirm with your lender. Tell the lender the new mailing address.
If there is an HOA, read the rules on leasing. Some communities set minimum lease lengths, require tenant registration or limit how many homes can be rented.
What to expect in year one
- Getting ready: repairs, a deep clean, maybe paint and flooring, and an AC service. Budget time and money for this before rent starts.
- Marketing and screening: photos, listing, showings, and screening applicants against written criteria applied the same way to every applicant, as fair housing law requires.
- Move-in: a signed lease, deposit collected, a photo inspection of every room, keys and utilities handed over.
- The first summer: AC calls are the most common repair here. A serviced system and fresh filters help.
- Small surprises: a leak, a broken appliance, an HOA letter. A repair budget keeps them small.
- Lease end: renew, adjust the rent, or prepare for a turnover and move-out inspection. The deposit must be refunded or itemized within 30 days after move-out under Texas law.
When to get help
Managing your own rental can work if you live nearby, have time, and know the Texas rules on deposits, repairs, late fees and evictions. It gets harder if you live out of town, have a full-time job, are dealing with an estate, or do not want to be the one answering a call about a leaking water heater on a Sunday night.
Rothrock handles the work from first walk-through to lease renewal: rent-ready planning, marketing, screening, the lease, rent collection, repairs through licensed vendors, quarterly inspections and the owner portal with every statement. If you are still deciding, our rent or sell guide and a free rental analysis are good places to start.
Questions
Should I rent or sell an inherited house?
Compare the realistic rent against every cost, including non-homestead property tax, landlord insurance, repairs and vacancy, and talk to a CPA about the tax side of each choice. Also make sure everyone with an ownership share agrees.
Do I need different insurance to rent out my house?
Usually yes. A homeowner policy is meant for a home you live in. Switch to a landlord or dwelling policy before the tenant moves in, and require the tenant to carry renters insurance.
Can I rent my house if I still have a mortgage?
Often yes, but check your loan. Many owner-occupied loans require you to live in the home for a period after closing. Confirm with your lender before you sign a lease.
What happens to my homestead exemption if I rent my house?
It ends. A rental is not a homestead, so the exemption and the 10 percent cap on taxable value no longer apply. Notify your appraisal district in writing.
Is it worth hiring a property manager for one rental?
It often is if you live out of town, have limited time, or are new to Texas landlord rules. A manager handles screening, repairs, inspections and deposits, and you get statements and payouts without being on call.
General information about Texas rules, not legal advice. For a specific situation, speak to a Texas attorney.