A family inherited a house in Detroit from their parents. After debating whether to sell or keep it, they decided to rent it out. Following this process, the initial steps of renting become clear.

First, they set the rent price. According to Zumper, the average rent in Detroit as of August 2026 is $1,200. A one-bedroom apartment averages about $920, while a two-bedroom averages around $1,110. They adjust these figures based on the number of rooms and the condition of the inherited house. Since this market is 38% lower than the national average, the rent may come in lower than initially expected. However, this average reflects the entire city, so significant variations can occur depending on the neighborhood.

When determining the rent, it's more accurate to compare it with three or four nearby listings. Details like the number of rooms, parking availability, and whether there's a basement can significantly impact the rent. In Detroit, rent has only increased by 1% compared to the previous year, so focusing on steady rental income rather than expecting a large increase is more realistic.

The next step is advertising. They post on Zillow, Apartments.com, and Facebook Marketplace. Photos should be taken in bright daylight. The first line should include the rent, security deposit, move-in date, and pet policy. If the inherited house has been vacant for a long time, cleaning and organizing it before taking photos can increase inquiries.

When inquiries come in, they conduct a screening. They check credit scores, proof of income, and rental history. They look for a monthly income that is about three times the rent. The criteria for screening are based solely on credit, income, and rental history. If there are multiple applicants, they apply the same criteria in the order of application. Filling out an online application makes it easier to gather and compare documents.

If they pass the screening, they sign a lease. This includes the rental period, rent due date, security deposit conditions, repair responsibilities, and notice period for termination. Since the inherited house may have old plumbing or electrical systems, it's safer to conduct an inspection before move-in. Checking the age of the heating system can also help reduce urgent repairs in winter. Including renewal conditions and rent increase notice periods in the initial document can make things less cumbersome later on.

Many landlords in Detroit struggle with whether to self-manage or hire a management company. If the inherited house is far away or difficult to visit frequently, it can save time and reduce stress to hire a management company, even if it means paying a percentage of the rent as a fee.

In Michigan, landlords can charge up to 1.5 times the rent as a security deposit. They must return it within 30 days after moving out, along with an itemized statement. Tenants can dispute the statement within 7 days of receiving it. If the deadline is missed, the landlord loses the right to deduct and may have to pay up to double the amount. Taking photos of the condition before move-in makes it easier to explain deductions later.

If rent is not paid, a 7-day notice is sent first. If the overdue amount and any specified late fees are paid within that time, the process stops. If not, it moves to summary proceedings in court.

Rent prices vary significantly by area in Detroit. Families that prioritize school districts should check the assigned school ratings as well. However, school district boundaries change frequently, so it's advisable to verify by address. If the inherited house is in a neighborhood away from the city center, providing information on safety and access to amenities can help increase inquiries.

Deciding to rent out an inherited house is also tied to property tax and inheritance tax issues. Tax matters can vary by state and county. Consulting a tax professional early in the decision-making process about whether to sell or rent can provide clearer guidelines for subsequent steps. By following the process step by step, renting out an inherited house can ultimately be a manageable series of tasks. This article is for general information, and it's advisable to consult a real estate professional, accountant, or attorney before finalizing any contracts.