After inheriting a parent's house in Billings, some people find themselves debating whether to sell or rent it out. Recently, I've noticed an increase in cases where individuals choose to rent. Instead of hastily selling the property, they believe it's better to operate it as a rental for a few years and reassess later.

If you've decided to rent, the first step is to check the condition of the house. Make sure the smoke detectors and carbon monoxide detectors are functioning, and for older homes, it's also wise to inspect the plumbing and electrical systems. Since this is an inherited property, confirm that the title transfer is complete before posting rental ads. It's best to take photos during the day after clearing out the belongings. If multiple siblings share ownership, it's advisable to document the rental management and profit-sharing arrangements in advance to minimize future conflicts.

According to Zumper data, the average rent in Billings as of August 2026 is $1,276. Studios average $825, one-bedroom units are $970, two-bedroom units are $1,200, and three-bedroom units are around $1,750. This is 34 percent lower than the national average, so if you choose to rent instead of sell, it's important to calculate the potential returns carefully. You can't assume renting is always the better option just by looking at the rent prices. It's also wise to decide whether to set the rental period for one year or on a month-to-month basis at this stage. Areas with student demand, like near Montana State University, tend to see a surge in inquiries at the start of the semester.

Once you've set the rent, it's time to list the property. You can register the photos and details on Zillow and Zumper, specifying the rent, security deposit, move-in date, and pet policies. Scheduling showings for multiple interested parties at once is efficient, and establishing a principle of reviewing applications in the order they are received can help reduce confusion later.

When inquiries come in, you'll need to conduct tenant screening. This process involves checking credit scores, income verification, and previous rental history, with many landlords looking for income to be at least three times the rent. It's common to charge an application fee to cover credit check costs. Since dealing with an inherited property can be unfamiliar, it's crucial not to skip this step. It's often better to avoid applicants with unclear documentation.

Next comes the lease agreement. You need to document the rent amount, payment due dates, security deposit amount and return conditions, lease duration, and maintenance responsibilities. The lease agreement is a formal record of the promises made between the landlord and tenant. Key items to include in the contract are:

• Rent amount, payment method, late fee criteria
• Security deposit amount and return conditions
• Lease duration and renewal terms
• Maintenance responsibilities and repair request procedures

Regarding regulations in Montana, recent sources indicate that there is no legal cap on security deposits. However, since different sources may mention varying standards, it's wise to double-check with official Montana resources before signing a contract. The return deadline is 10 days if there are no deductions, and if there are deductions, it must be processed within 30 days along with an itemized statement. If rent is overdue, a 3-day eviction notice is required, while a 14-day notice applies for contract violations, and a 5-day notice for repeated violations. Since this is inherited property, you must also report rental income and change the property tax title, and it's safer to adjust the insurance to rental coverage as well. It's good to know that deductions from the security deposit are limited to actual damages, not normal wear and tear.

The figures and regulations discussed in this article are general information, and it's advisable to consult a real estate attorney or accountant before finalizing any contracts or handling inherited property. It may feel unfamiliar at first, but if you follow the steps, it can be managed without too much difficulty.