Co-owning an inherited home sounds simple—until the bills arrive, repairs pile up, and opinions clash. In Florida, co-owners share legal duties to protect the property’s value, pay carrying costs, follow local rules, and treat each other fairly. At Inherited Property Advisors, our Florida Inherited Property Advisors recommend getting clear on roles and setting ground rules early to save money and prevent conflict.
Key Takeaways:
- You share ongoing costs (taxes, insurance, utilities, HOA) in proportion to your ownership—unless you agree otherwise.
- All co-owners have equal use rights, but an heir who lives in the home may owe “occupancy rent” or lose certain reimbursements.
- You must prevent “waste,” meaning don’t let the property deteriorate or violate laws/HOA rules.
- Put it in writing. A co-ownership agreement should cover budgets, repairs, access, tenants, buyouts, and dispute resolution.
- Document everything. Track contributions, credits, and decisions for future buyouts or sales.
Our Florida Inherited Property Advisors recommend using a short, written co-ownership plan within the first 30 days of inheriting.
Who Pays What: Taxes, Insurance, Mortgage, and Bills
- Property taxes and assessments: Each co-owner is responsible for their share. Missed taxes can lead to costly tax certificates and eventual sale.
- Insurance: Keep the right policy type. If no one lives there, you may need a vacant-home policy. If rented, you need landlord coverage. In flood zones, separate NFIP flood insurance is key.
- Mortgage/HELOC: The lender expects timely payment regardless of internal splits. If one heir pays more than their share, they may claim a credit later.
- HOA/condo dues and special assessments: These attach to the property. Late fees and liens can snowball quickly.
- Utilities and basic upkeep: Lawn, pool, pest control, and utilities are shared expenses if they preserve the property.
Our Florida Inherited Property Advisors recommend creating a monthly budget and shared account so bills don’t fall through the cracks—and so credits are easy to prove later.
Maintenance, Repairs, and Improvements
You have a duty to avoid “waste,” which means you should handle necessary repairs that preserve the property’s value and safety.
- Necessary repairs (roof leaks, A/C failure, plumbing, mold mitigation) should be addressed promptly, with notice to co-owners when possible.
- Improvements (kitchen upgrades, additions) usually require majority consent and may not be fully reimbursable at resale.
- Hurricane readiness: Florida properties need storm prep—roof maintenance, tree trimming, shutters, and wind-mitigation updates.
- Permits and code compliance: Unpermitted work can block a sale and trigger fines.
Our Florida Inherited Property Advisors recommend distinguishing “necessary” from “optional” work in writing and gathering two bids for major repairs to avoid second-guessing.
Occupancy, Access, and Use
- Equal right to possess: Each co-owner generally has the right to access and use the property. Don’t change locks without a plan for shared access.
- Exclusive occupancy: If one heir lives in the home, the others may claim a fair “use and occupancy” credit at buyout or sale.
- Short-term rentals (Airbnb/VRBO): Check local ordinances and HOA/condo restrictions—violations can be costly.
- Pets, parties, and nuisances: Co-owners must avoid violating HOA rules and local noise, parking, or nuisance laws.
Our Florida Inherited Property Advisors recommend a written occupancy policy covering access, guests, STR rules, and a process to resolve complaints quickly.
Renting to Tenants: Leases, Deposits, and 1099s
- Authority to lease: Decide who can sign leases. Ideally, the designated manager signs on behalf of all co-owners under a written agreement.
- Security deposits: Must be held and accounted for per Florida law. Mishandling deposits leads to penalties.
- Property management: A licensed manager can coordinate repairs, collect rent, and file 1099s.
- Landlord insurance: Switch to proper coverage; homeowner policies often exclude rental activity.
Our Florida Inherited Property Advisors recommend appointing one “managing co-owner” or hiring a property manager to centralize leasing, inspections, and accounting.
Accounting and Taxes
- Step-up in basis: On inheritance, your tax basis generally “steps up” to date-of-death value, reducing capital gains if you sell soon.
- Rental income/expenses: If you rent, report your share of income and deductible expenses on Schedule E. Depreciate from the stepped-up basis.
- Sale reporting: Keep every invoice for repairs and closing costs—these can adjust taxable gain.
- Homestead: Only a primary resident owner can claim the Florida homestead exemption and Save Our Homes cap. Reapply if occupancy changes.
- Transfers between heirs: Deeding interests among co-owners can trigger Florida documentary stamp tax and potential gift-tax issues.
Our Florida Inherited Property Advisors recommend consulting a tax pro before buyouts or refinances to preserve step-up benefits and avoid surprise taxes.
Decision-Making, Agreements, and Disputes
Without structure, small disagreements become expensive. Set clear governance:
- Co-ownership agreement: Define budgets, approval thresholds (e.g., two-thirds for expenses over $2,500), repair standards, insurance levels, who holds keys, and how to select contractors.
- Money in/money out: Track contributions in a shared ledger. Credit necessary repairs, taxes, insurance, and agreed improvements.
- Buyout and sale rules: Include a right of first refusal, appraisal method, and a timeline.
- Dispute resolution: Mediation before any lawsuit.
If talks fail, any co-owner can seek partition. Under Florida’s Uniform Partition of Heirs Property Act, a court can order an appraisal and give co-owners a buyout right before forcing an open-market sale. Our Florida Inherited Property Advisors recommend treating the Act’s process as a blueprint for voluntary resolution—appraise, offer, and close—without going to court.
Liability and Risk Management
- Premises liability: Injuries on the property can create shared risk. Maintain safe conditions, fix hazards, and carry adequate liability coverage (consider an umbrella policy).
- Code and HOA violations: Fines and liens attach to the property. Don’t ignore violation letters.
- Vendor selection: Use licensed and insured contractors—uninsured work can become your problem.
- Record title and liens: Pull a title search to catch hidden liens, code fines, or permits before listing or refinancing.
Our Florida Inherited Property Advisors recommend an annual “property health check”: insurance review, lien search, roof/HVAC service, and a safety walkthrough.
During Probate vs. After You Receive the Deed
- During probate: The personal representative (PR) controls estate property, pays carrying costs, and may authorize repairs or insurance. Heirs should coordinate but may not have authority to sell or lease.
- After deeded to heirs: Responsibilities shift to co-owners directly. If the property is homestead that passed outside probate, confirm who holds title and on what terms.
Our Florida Inherited Property Advisors recommend confirming the current status—estate-owned, homestead transfer, or tenants-in-common—before signing leases or contracts.
A Simple Responsibilities Checklist
- Set a written budget and shared account.
- Confirm correct insurance (homeowner vs. landlord vs. vacant; add flood if needed).
- Schedule necessary repairs and storm prep.
- Create an access and occupancy plan.
- Decide leasing rules or listing strategy.
- Track all contributions and credits.
- Establish buyout terms and an appraisal method.
- Revisit the plan annually or after major events.
Our Florida Inherited Property Advisors recommend naming a point person and backup, with agreed authority limits, to keep decisions moving.
Conclusion
Co-owning an inherited property in Florida carries real responsibilities—financial, legal, and practical. When you align on budgets, maintenance standards, access, insurance, and exit options, you protect relationships and equity.
Inherited Property Advisors helps Florida families set up fair co-ownership plans, manage rentals, and navigate buyouts or sales with minimal friction. For your situation, our Florida Inherited Property Advisors recommend a deed and insurance review, an appraisal-backed maintenance plan, and a concise co-ownership agreement so everyone knows what to expect and how to move forward.