Should You Sell or Rent Your Parent's House to Pay for Care?

Should you keep the house as a rental?

When a parent moves into care, some families wonder whether to keep the house and rent it out, using the rent to help with care costs. It’s a reasonable idea, and for some families it works well. For others, it turns into a second job. This guide compares both paths, as part of our resources on selling a parent’s house for care.

Before either decision, talk with an elder law attorney. Minnesota Medical Assistance rules can treat a house, sale proceeds, and rental income differently depending on your parent’s situation.

What renting involves

Being a landlord means more than collecting rent:

• Getting the house rent-ready. Older homes often need updates, and some cities require inspections for a rental license.
• Rental licensing. Many Minnesota cities require a rental license, and rules vary by city.
• Finding and screening tenants. Following fair housing and Minnesota landlord-tenant law.
• Repairs and emergencies. A furnace failure in January is your problem at 2 AM.
• Vacancies. Months without rent between tenants.
• Insurance. A landlord policy instead of a homeowners policy.

A property manager can handle much of this for a fee, which cuts into the rent.

What selling involves

Selling is a one-time decision. You get a price, pay off any mortgage, and the proceeds go to your parent. With a sale to us, there are no repairs, the cleanout is handled, and you choose the closing date. With a listing, you’ll likely get a higher price but take on repairs, showings, and time.

Side by side

When renting tends to work

• Someone in the family lives nearby and is willing to manage it, or you’re comfortable paying a manager
• The house is in good shape and meets rental standards
• The family wants to keep the house long term
• The elder law attorney is comfortable with how rental income is treated

When selling tends to be simpler

• No one lives nearby
• The house needs significant work to rent
• The family is already stretched thin with care decisions
• You’d rather have a clear number than a monthly variable

A middle path

Some families rent for a while and sell later. If you go that route and later decide to sell, we buy with tenants in place and existing leases carry over. See our page on rental property.

An illustrative monthly rental picture

Here’s a simplified example with round numbers, for illustration only.

That net can be meaningful, but it isn’t guaranteed. A furnace replacement or a few months of vacancy can wipe out a year of net rent. And the house may need updates before it can be rented at all.

Getting a house rent-ready

Many parents’ homes need work before they meet rental standards or attract good tenants:

• Safety items like smoke and carbon monoxide detectors, railings, and egress windows
• Updates to worn flooring, paint, and fixtures
• Mechanical checks on the furnace, water heater, and electrical
• A city rental license and inspection, where required

Questions to ask yourselves honestly

1. Who will answer the phone when a tenant calls at night?
2. Can we afford a major repair without the rent?
3. Are we keeping the house for financial reasons or emotional ones?
4. How would siblings share the work and the income?
5. What does the elder law attorney say about rental income?

Before you decide

1. Talk with an elder law attorney about the MA lookback and how income is treated.
2. Get a realistic rent estimate and a list of what the house needs to be rentable.
3. Check your city’s rental licensing requirements.
4. Get a written offer so you know what a sale would look like.
5. Decide who in the family will actually do the work.