DC have inherited a flat! Sell or keep?

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A fabulous problem to have I know, but my two DC have unexpectedly inherited from a relative.

The property is a high rise flat in 60's style block on the edge of a busy city near very good transport links. It's an area they know well as it's not far from the family home. It has decent sized rooms and lovely views.

Dc are late teens/early twenties and just starting out in life. Both live away from home and have no plans to return.

There are three options:-

First is to keep it and rent it out so they can get some income from it. Neither have a property of their own. This is my least favourite option as I know I'll end up doing the practical stuff like getting a call at 3am from tenants to say the boiler is broken! We have no experience of letting, but I'm sure with all the rules and regulations it would be a nightmare.

Option two is to keep it and use it as a base for storing furniture and to use themselves when they come home for Christmas, etc. This has some appeal, but they'd have to think about paying service charges, council tax, etc.

Option three is to sell it.

It's very much their decision, but I would like your thoughts please as they're due here in a couple of days for the funeral (which I'm organising) and they want to discuss it.

Sell.

Renting property out needs liquid funds. You need to be able to fix stuff when it breaks. If they choose to get someone to manage it they take about a third. If they don't they have to do a lot of work.

Sell it, get the money, they can invest it and use it as a deposit when they want to buy.

Sell, for all the reasons PP has said

If they rent it, make them get a property manager and accountant so it doesn’t fall on you to look after.

Very poor taste to be discussing an inheritance before even the funeral has taken place! It's not even theirs yet!

I’d sell it if they’re not likely to ever live in it. I’d give them a lump sum now, a few grand for a car or travelling or education, and put the rest of the proceeds into a high interest account for when they want their own deposit for a house.

Any idea what sort of value we’re talking?

Another vote for sell it. Could they put the proceeds in some kind of isa to help them buy a property for themselves in the future?

Also if they sell, open a LISA if they don’t already have one, and put some of the fund in each year to get the 25% government bonus.

Sell. Don't be come an accidental landlord. And insurance on an empty flat sounds worrisome.

Are they at uni, renting? Would living there be an option. Seems fruitless renting if you own a property. I'm in a very popular SE UK area, and a lot of properties have been on the market over a year,there's nothing dodgy about them,it's just how it is. Otherwise sell and highest interest account they can find. I have friends who rent out property,it's a nightmare.

I would rent it out through an agent who offers full management. Plan to sell it when one or both are ready to buy. If its a flat you shouldnt have major maintebance costs as you are just leaseholder, but you need to check the service charge and what you are responsible for. Using it for storage is a crazy idea, your insurance would be sky high for a vacant property.

I would also sell. I rented a property for a number of years and it was an endless expensive hassle.

Using it periodically and for storage could also impact insurance as a property usually needs someone to stay in it after a certain period of time.

Sell.

High rise flat in 60s style block however good the views and room sizes (a) has limited rental market (b) potential for high service charges/costs eg lift maintenance. Is there any cladding?

They would be better to take the money and invest it in a property of their own choice.

Sell. But be sure to invest the vast majority of the money so it doesn't get frittered away and can be put toward a more suitable property later.

Not poor taste at all. Sensible to discuss what they want to do and make sure they’re in the same page to avoid any conflict. They also might not be together again until Christmas, and these things are always better discussed in person.

Rent it through an ag3ncy. Then you won't be bothered with boiler problems. Or sell . But unless it is a sought after flat in a popular area I would be inclined to sell.

Impossible to advise without more information.

How big is the flat?
What are the service charge, community charge, etc
What are the potential yields
How much is it worth
State of repair
Which floor - some top floor flats are prone to leaky roofs and can be colder than those on lower floors
Some ground floor flats are more prone to break ins
Is there parking
How long is left on the lease and are there any caveats in it that prevent short term rentals

Against the grain so far, but if all other things are equal, I would be minded to let it through a good letting agent (not necessarily the cheapest) and put the proceeds into Trust for when the youngest is 25 or 30. Any repairs can be funded by the Trust. Yes there will be some associated costs but probably less than a couple of under 21s blowing several thousand before their 25 birthdays.

I've inherited (kind of... It's a long story) a rental property, and I'm desperate to get rid of it. It's a millstone, frankly. I'm even prepared to give up a whole chunk of it's value to sell it with its tenant still in place.

I have no idea why anyone owns rental property. It's just hassle and responsibility, even with an agent

Why? The OP is clearly a close family member as she's organising the funeral, if she was forcing people who were bereaved to discuss it I'd agree but she's not.

If the DC have inherited the property, OP cannot just give them a few grand now from the proceeds of sale and put the rest elsewhere.
The DC are entitled to all the value of the property to do with as they wish. They are both adults.

Has inheriting this ruined their chances of using Help to Buy schemes in future, or if they keep it will it do so? They obviously may not need the help with the money they get from selling but if it isn't worth that much and they want to buy in a more expensive area it could be an issue.

Who pays capital gains if you inherit and sell in this context? Is it a university city? Could you rent to students though an agency?
the benefit of renting is you retain the existing capital and any increase in value while still having an income.
as a pp said. You might have to save the initial income so you have a fund for repairs, but after that it should provide a modest supplementary sum for them over a long period.

Agree with all the calls of sell but there might be another option of a long lease to the local authority who would then manage all maintenance etc. it just means it would be generating some income and remaining a nest egg without the hassle, plus the country really needs more social housing.

Yes they will. While I have this property (which doesn't bring in much rent, it's a two bed in a cheap area) I still have to pay for repairs etc. Three months after it became mine, I have the princely sum of £1500 (before tax) and apparently there's potentially £5k of work needing doing to it.

The agent manages it. They don't pay for the new boiler out of their own pockets.

No it isn't. The OP clearly stated the DC live away and are returning for the funeral in a couple of days and have asked to discuss it. OP is asking for opinions before that discussion. Not tasteless, just practical.

That's my opinion. I think it's gross.