How to Manage Occupants in an Inherited Property
In probate situations, it’s often assumed the property will be empty—but that’s not always the case. In reality, many estate homes are still occupied. Tenants may still be living there under a lease or month-to-month agreement. Family members or heirs may have moved in informally. And in some cases, there may be unauthorized occupants with no legal claim to the home.
While these scenarios can complicate the path to sale, they don’t have to derail it. With the right mix of strategy, communication, and legal awareness, occupied probate properties can still be sold smoothly and respectfully.
Here are a few common occupancy scenarios—and how we typically approach each one:
1. Month-to-Month Tenants
These tenants are often cooperative—especially if treated with respect and given enough notice. In many cases, they’ll agree to relocate if they’re offered:
- Proper written notice (usually 30–90 days)
- Financial assistance with moving expenses (known as “cash for keys”)
- A flexible move-out timeline
This approach avoids formal eviction proceedings and can save both time and legal costs for the estate. We assist with drafting simple agreements and help coordinate move-out logistics.
2. Leases Still in Effect
If the occupant has a valid lease, it typically transfers with the property—meaning the estate or new owner may need to honor the lease until it expires. However, there are often options:
- Offer a lease buyout if the tenant is willing to leave early
- Sell the property with the lease in place (this may appeal to investors)
- Wait until the lease ends, then begin sale preparations
Understanding the lease terms, security deposit status, and tenant rights under local law is crucial. We can work with attorneys to review documents and determine the best path forward.
3. Heirs Living in the Home
This is one of the most sensitive situations. In many cases, a family member may move into the property shortly after the decedent passes—either out of necessity or sentiment. While this can delay the sale, it’s important to approach the conversation with compassion and clarity.
We work closely with the fiduciary and the estate attorney to:
- Understand the heir’s role and legal standing
- Discuss realistic timelines for vacating or transitioning the home
- Offer resources, referrals, or relocation assistance when possible
A gentle but proactive approach helps avoid misunderstandings and keeps the estate process moving forward.
4. Unlawful or Unauthorized Occupants
In rare but difficult cases, a property may be occupied by individuals who have no legal right to remain—such as former roommates, informal caregivers, or even squatters. These situations can be emotionally charged and legally complex.
It’s critical not to take matters into your own hands. Instead, we advise:
- Documenting the situation carefully
- Consulting legal counsel for guidance on notice and eviction laws
- Avoiding confrontation and letting the appropriate authorities handle removal
We’ll work with the attorney and fiduciary to ensure all actions comply with state and local regulations—and that the home is secured once vacated.
Selling a probate home with occupants may require extra coordination, but with a knowledgeable team and a thoughtful plan, it can be done smoothly. Whether it’s tenants, family, or unauthorized individuals, our role is to approach each situation with empathy and strategy—while keeping the estate’s goals and legal responsibilities in focus.
If you’re facing an occupied probate property, see the Colorado landlord and tenant law website or we’re here to help. Reach out anytime for guidance, resources, or support.