Creating a rental property with deceased owner (deceased owner). Can it be done?

[1NVESTOR101]

Hi There, after my grandad passed away. My parents and I decided to buy the property as an investment.

As a way of avoiding a bridging loan, we utilised the non-arms length transaction to renovate the property first and then plan to purchase it (the property was deemed as high renovation work so couldn't get a commercial mortgage).

We will be buying it in an ltd company and want to rent it out this September. In order to do this we have to change the insurance to a HMO landlord insurance package and purchase the property. However, we may not have it in the company name by September.

My question is, is the company able to declare rental income from the property and rent out to tenants whilst the property is still in my grandad's name? This would also mean the executor of my grandads estate will change the insurance on our behalf to a HMO landlord insurance.

Thanks in advance for your help.

[Critter-3]

Let's see if we can take this down to brass tacks ... the decedent still owns the property so it is now part of the estate.  The estate will rent the property until the legal ownership changes thus the estate will file an income tax return to report the rental income.   I HIGHLY recommend you sit down with a local tax pro and/or RE/estate attorney  so you get this messy situation handled correctly. 

[SweetieJean]

 ltd company

utlilised

Are you in Canada?  This is the USA forum.

You have not asked an income tax question, and we cannot give legal advice here.  How did you renovate it if it wasn't in your name?  Who inherited it?   You said you "will" be buying it.  From whom exactly?  Sounds like you need to see an attorney about all this.  

[Anonymous_]

I agree with @Critter-3 and @SweetieJean; consult with local legal counsel for this matter.

See https://www.avvo.com

Also, "HMO landlord insurance" appears to be an indicator that the property is not located in the USA (possibly the UK).

[Mike9241]

whilst -

HMO insurance is landlord insurance for 'houses in multiple occupancy'. Multiple occupancy is defined as homes that have shared or communal facilities like kitchens or bathrooms that will be shared by tenants from a minimum of three different ‘households’.

UK or CA. 

[Carl]

Your post does not appear to have anything to do with taxes. Also, it doesn't sound like this property is in the US. But if it is, the only person that can legally do "anything" with the property, is the legally appointed/recognized administrator of the estate. Generally, this person is identified in the Last Will & Testament. Otherwise, they are appointed by the court. You need to seek legal advice in your local jurisdiction before you do anything.