Houston Estate Planning and Elder Law Attorney Blog
East Austin’s duplexes and backyard ADUs mix rental income with neighborhood character. They also create unique succession questions when an owner dies or becomes incapacitated. If you plan now, tenants keep paying, contractors keep showing up, and your heirs receive a property that is easy to manage or sell. A practical plan treats your rentals like a small business with clear instructions and the paperwork to match.
Identify What You Own And How It’s Titled
Start by listing each unit—front house, back house, garage apartment, or detached ADU—and confirm how title is held. Some East Austin owners condominiumize a duplex into two units with separate legal descriptions and HOA documents. Others keep one lot with multiple dwellings. Your deed, survey, and any condo declaration determine what your executor can sell and how buyers will finance the deal. Put copies of these records in a single folder so your fiduciary is not hunting through email during probate.
Keep Permits, STR Licenses, And Leases Current
If a unit operates as a short-term rental, save the license, renewal dates, and any City correspondence about occupancy rules or noise complaints. For long-term tenants, file signed leases, addenda, pet agreements, and security-deposit receipts. Make sure every lease states where rent should be paid if you die and who manages the property in the interim. When documents are current, rent keeps flowing and title companies relax when a sale is planned.
Separate Money, Maintenance, And Messages
Treat your rentals like a business. Open a dedicated operating account for rents and repairs. Keep a written vendor list—plumber, HVAC, electrician, roofer—with phone numbers and preferred pricing. Add a two-page “how the property works” memo that covers gate codes, trash pickup, irrigation timers, and shut-off valves. Place this packet with your estate documents and share a digital copy with your property manager or trusted family member. Clear instructions prevent small issues from becoming emergencies when your executor steps in.
Decide Who Runs Things On Day One
Name a successor trustee (if you use a living trust) or an independent executor (in your will) who can act fast. Grant explicit powers to collect rent, sign leases, handle evictions, and sell property without another hearing. If you prefer a manager, appoint one in your documents and state their fees. Tenants get nervous when ownership changes; a named point of contact and a short welcome letter keep relationships steady.
Choose The Right Transfer Tool
A revocable living trust often works best because your successor trustee can manage units immediately without waiting on court orders. If you prefer a will-only plan, make sure it requests independent administration and waives bond to reduce delays. For single-asset transfers to a child, a transfer-on-death deed can work, but it does not solve rent collection, repairs, or tenant disputes. Most landlords still prefer a trust for day-to-day continuity.
Plan For Loans, Insurance, And Taxes
Keep your lender’s contact information handy and store insurance declarations with replacement-cost coverage. Ask your agent whether your current policy covers tenant-occupied structures and detached ADUs. Calendar tax and license deadlines so your executor does not miss payments. If a 1031 exchange is on the horizon, include guidance on timing and preferred replacement asset types so your fiduciary can move quickly if a buyer appears.
Think Through Tenant Transitions
If you want heirs to keep units as rentals, instruct the fiduciary to renew leases that protect cash flow and require renters insurance. If you expect a sale, authorize cash-for-keys offers after closing or short leasebacks to help tenants move with dignity. File a simple rent-readiness checklist (smoke detectors, GFCIs, locks, blinds, paint touch-ups) so your manager can prepare units without waiting for your approval.
Allocate Equity Fairly Among Family
Real-estate wealth often causes sibling tension. Consider a plan that appoints one heir to own the rentals and equalizes the others with cash or life insurance. If multiple heirs will co-own, create a short co-ownership agreement that sets buyout formulas, repair budgets, and dispute-resolution steps. Clear rules turn future arguments into predictable procedures.
Update After Renovations Or Re-Plat
Every remodel, re-plat, or new services agreement changes your file. Add permits, final inspections, and contractor warranties to your packet. A neat paper trail gives buyers confidence and increases appraised value if your executor lists the property.
Your duplexes and ADUs can continue to support your family if the transition is smooth. For an East Austin succession plan that keeps rent steady and closings on time, call McCulloch & Miller, PLLC at (713) 936-9073 and get a landlord-ready estate plan built for your properties.