The decision to sell or rent an inherited New York home usually comes down to four questions: Can the rent comfortably cover taxes, insurance, maintenance, and vacancy? Do all heirs agree? Can someone manage tenants? And are you comfortable being a landlord under New York's tenant-friendly laws?
There's a tax angle most people miss: when you inherit, you get a stepped-up basis to the property's value at the date of death. If you sell within a year, capital gains are usually minimal. Hold and rent for ten years, then sell, and you owe gains on a decade of appreciation.
Renting can absolutely make sense for the right family — strong cash flow, no immediate need for the money, capable property manager, and a building that won't bleed you on repairs. For everyone else, selling and investing the proceeds is usually cleaner.
The right answer depends on the property and the family. Getting both numbers — what it sells for now vs. what it rents for net of expenses — gives you a real comparison.