Inherited a Rental Property in Washington: First Steps

DecideFacts checked November 8, 2026Reviewed by Gary E. Wilson, President and Designated Broker

Who can sign, collect rent and hire a manager

Washington says title to a person's real estate vests in their heirs or devisees immediately at death, under RCW 11.04.250. That title is subject to the person's debts and the costs of the estate. It is also good against everyone except the personal representative, once one is appointed.

RCW 11.48.020 gives an appointed personal representative the right to immediate possession of the estate's real property and to collect its rents until the estate is settled or delivered to the heirs by court order. The same section says the representative must keep the buildings under their control in tenantable repair.

So during probate, the personal representative is usually the person who signs a lease renewal or a management agreement. If the home passed outside probate, for example by a transfer on death deed under chapter 64.80 RCW or through a trust, the person with authority may be different. A careful property manager asks for proof of authority before signing anything.

The tenant stays, and so do the lease and deposit

A change of owner does not end a tenancy. RCW 59.18.650 lists the causes for which a Washington landlord may end a tenancy, and an owner's death is not one of them. The current lease terms, rent and due date carry on.

The deposit carries on too. RCW 59.18.270 says that when landlord status changes during a tenancy, the deposit moves to an equivalent trust account held by the successor, who must promptly tell the tenant where it is now held. For the deposit rules in full, see Washington security deposit law.

The tenant also needs to know who the landlord is now. RCW 59.18.060 requires the landlord's name and address to be given to the tenant, and any change to be given in writing immediately. The rules on rent increases also continue, with the 12-month clock running from when the tenancy began.

A first-month checklist

Whoever has authority, the first weeks are mostly about keeping things steady. Most families and personal representatives work through a list like this:

• Find the lease, any addenda, the move-in checklist, the rent ledger and the deposit records.
• Tell the tenant in writing who to contact, where to pay and where repair requests go.
• Keep estate rent and expenses apart from your own money, with a clear record of each.
• Call the insurance company to report the death and ask what the policy needs now.
• Keep utilities, repairs and any HOA dues current, since the home still has to be kept in repair.
• Collect keys, garage openers, alarm codes and warranties.
• Note the home's condition and gather any paperwork that could help value it at the date of death.

Inherited basis, in general terms

Under federal law, 26 U.S.C. 1014 generally sets the basis of property acquired from a decedent at its fair market value at the date of death, or at the alternate valuation date if the estate elects it. People often call this a stepped-up basis. There is an exception for appreciated property the decedent received as a gift within one year before death that passes back to the giver.

IRS Publication 551 adds that when an estate must file Form 706, certain beneficiaries must use the estate tax value as their basis and generally receive Schedule A (Form 8971) showing it. Pub 551 also has separate rules for community property. Publication 527 says depreciation begins when you place a rental in service, and it points to Pub 551 for the basis of inherited property.

Basis affects depreciation if you keep renting and gain if you sell, so keep the valuation and estate papers with your rental records. For deductions in general, see rental property tax benefits in Washington. A Washington attorney or CPA can apply these rules to your estate.

Rent, sell or hold: how to decide

Once authority is clear, you can make the bigger choice. A free rental analysis tells you what the home could rent for now, which you can weigh against a sale price and the costs of keeping it. Our guide to renting or selling walks through that choice, and how to rent out a Bellevue house covers what landlording involves.

If you want to sell a single-family home and have the tenant move out, RCW 59.18.650 requires at least 90 days' advance written notice and real steps to sell, such as listing it at a reasonable price within 30 days after the tenant leaves. An owner or immediate family member moving in also needs 90 days' notice and good faith. You can also sell with the tenant in place; see selling a tenant-occupied rental.

If several heirs share the home, agree in writing on who decides day-to-day matters. That makes it easier to hire a manager, approve repairs and answer the tenant with one voice.

If you hand the rental to a property manager

Many estates bring in a manager so the tenant has one steady contact while the family sorts out the rest. A typical manager will want proof that the person signing has authority, the lease file and the deposit records before taking over. Our guide to documents to gather before hiring a manager lists what to collect.

Wilson Management's owner FAQ says it needs to see proof of the owner's insurance before it starts managing, that it can be ready within the first 24 hours after the contract is signed, and that owners keep a say in decisions. For an estate, that means the personal representative or new owner stays in charge of the big calls, such as whether to renew, sell or repair. To talk it through, contact the Bellevue office.