What Should You Do With Your Parents' Home? A Millennial's Guide

Millennials are navigating a unique time in our lives where many of us find ourselves dealing with questions about what to do with our parents' home. Whether it's due to downsizing, inheritance, or other life changes, the responsibility of managing a family property can be both emotional and overwhelming. Here’s a breakdown of your options and key considerations to help you make the best decision.

1. Assess the Emotional Attachment

Before making any decisions, take a moment to evaluate the emotional connection you have with the home. Did you grow up there? Does it hold sentimental value? It’s important to acknowledge these feelings, but also balance them with practical considerations. A house is not just a repository of memories; it’s also a significant financial asset.

2. Understand the Financial Situation

One of the first steps is understanding the financial health of the property. Key questions to ask include:

  • Is there an outstanding mortgage or other liens on the home?

  • What are the property taxes, utility costs, and maintenance expenses?

  • How does the home’s market value compare to similar properties in the area?

A consultation with a real estate agent or financial advisor can help clarify the property’s financial picture.

3. Consider Your Options

When it comes to deciding what to do with your parents’ home, there are typically three main options:

Sell the Home

If maintaining the home doesn’t make sense for your lifestyle or financial situation, selling might be the best option. Here’s why this route appeals to many millennials:

  • Financial Gain: You can use the proceeds for other investments or paying off personal debt.

  • Simplicity: Selling eliminates ongoing maintenance and financial responsibilities.

  • Market Potential: If the housing market in your parents' area is strong, this could be a great time to sell.

Rent the Home

If you’re not ready to let go but don’t plan to live there, renting out the property is a viable option. This can provide:

  • Passive Income: Regular rental payments can supplement your income.

  • Property Retention: You’ll still own the home if you decide to move back in or sell later.

  • Tax Benefits: Rental properties often come with deductible expenses.

However, being a landlord requires time, effort, and sometimes professional property management.

Keep It in the Family

If your family has strong ties to the home, consider:

  • Living in It: Does it make sense for you or a sibling to move in?

  • Sharing the Property: If multiple family members are interested, discuss co-ownership or shared use agreements.

  • Vacation Home: If the property is in a desirable location, it might work as a second home for family getaways.

4. Weigh the Costs of Maintenance and Repairs

Older homes, in particular, often require significant upkeep. Before deciding to keep or rent out the property, get a thorough inspection to identify potential costs for repairs or updates. From roof replacements to outdated plumbing, these expenses can add up quickly.

5. Consult Legal and Financial Professionals

Whether you're selling, renting, or keeping the property, there are legal and financial considerations to navigate. These may include:

  • Understanding inheritance taxes

  • Transferring ownership

  • Drafting rental agreements

A real estate attorney and financial advisor can help ensure you’re covering all your bases.

6. Think About Your Long-Term Goals

Finally, consider how the decision aligns with your personal and financial goals. Ask yourself:

  • Does this property fit into my current lifestyle?

  • Will keeping it create financial strain?

  • How does this decision impact my family dynamics?

Deciding what to do with your parents’ home is no small task, but it’s a decision that can shape your financial future. By carefully weighing your options and seeking professional guidance, you’ll be able to make the choice that’s right for you and your family.

If you’re considering selling, renting, or simply need advice, let’s connect! As a real estate professional, I’m here to guide you every step of the way.

Kevin Woo