Imagine that a distant aunt leaves you a well-maintained block of flats in a good neighbourhood. What might initially sound like a stroke of luck can quickly become a burden if you don’t know what to look out for. In this article, we’ll show you how to avoid the five most common mistakes and make the most of your situation.
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Unlock content Accept the required service and unlock contentError 1: Unclear ownership
The first and perhaps most important step is to clarify the ownership structure. Family situations can be complex – and things do not always run smoothly. A clearly worded will can make things much easier in this regard. If there is no such will, the probate court will decide on the distribution of the estate in accordance with the Civil Code. In such cases, it is essential to consult a specialist solicitor in inheritance law. They will not only assist you in clarifying your claims in a legally sound manner, but will also help draw up an inheritance settlement agreement that transparently sets out who is entitled to which shares of the property. And even if you find it uncomfortable to discuss such matters within the family – referring to your own poor memory can help to defuse sensitive conversations in a charming way. At the same time, you should check whether there are any outstanding debts or registered third-party rights, such as rights of residence.
Mistake 2: Not knowing the exact value of the property
Once the ownership situation has been clarified, the next step is to determine the property’s realistic value. You can get a rough estimate using online calculators or by comparing current listings on property portals. However, do not rely solely on these figures: a professional valuer or an experienced estate agent can identify hidden defects or highlight specific locations as factors affecting value. For example, an unassuming location right next to a nature reserve could significantly increase the value of your property.
Mistake 3: Underestimating taxes and costs
Mistake number three concerns the often underestimated taxes and running costs. Inheritance tax is based on the degree of kinship and the value of the property – this can quickly amount to five-figure sums. A tax adviser can help you find legal ways to optimise your tax position, for example by using the property yourself. Added to this are maintenance, insurance and potential renovation costs, which together can easily amount to several thousand euros a year.
Mistake 4: No clear strategy – sell or let?
The fourth mistake is indecision: should you let it out or sell it? Trying to do both at the same time often leads to sub-optimal results. If you can cover the running costs and the property is in good condition, letting it out through a property management company, including rent default insurance, can be a lucrative option. If not, selling may make more sense – but only if the process is professionally managed. Make sure the estate agent really does have experience with multi-family properties. A good point of contact here is, for example, OFFMARKET24. Our transaction managers sell multi-family properties to professional investors every day – quickly, efficiently and at no cost to you, as the buyer pays the commission.
Mistake 5: Starting out without professionals
The fifth and overarching mistake is not working with professionals from the outset. A few hundred euros spent on a solicitor or tax adviser can save you a lot of trouble and high follow-up costs in the long run. This step is definitely worthwhile, particularly for properties in the six- or seven-figure range. Even if you decide against working with us – make sure you work with competent partners who truly understand the market and your situation.
An inherited block of flats doesn’t have to be a burden. If you make the right decisions early on and avoid the typical mistakes, this inheritance can be a great opportunity for your financial future. If you have any questions, please feel free to get in touch. And if you enjoyed this post, we’d love it if you gave us a like or subscribed to our channel.
