Inheriting a property in Calgary can feel like both a blessing and a burden. On one hand, you’ve received a valuable asset. On the other, you’ve inherited responsibilities, decisions, and sometimes costs. Whether it’s a house in Beddington, a condo in Mission, or a rental in the suburbs, the choices you make now can have long-term financial, legal, and emotional implications.
In this article, we’ll walk through all your major options – keeping the property, renting it, selling it (publicly or privately) – and explore the tax, legal, market, and personal factors you should weigh before deciding.
At the end, you can use our free tool to find your best path forward:
👉 Home Selling Strategy Finder
Legal & Tax Basics You Should Know
Before you decide what to do with the inherited property, it’s essential to understand the ownership and tax issues specific to Alberta.
Ownership & Probate
- When someone in Alberta passes away, property may need probate (a grant of representation) before it can legally transfer to heirs.
- Until the estate is settled, you might not be able to sell or refinance the property.
- If there are multiple heirs, you’ll need to decide whether to co-own, buy each other out, or sell the property and split proceeds.
Tax Considerations
- Canada has no inheritance tax, but the deceased’s estate faces a deemed disposition at fair market value, which may create capital gains tax.
- As the new owner, your cost base resets to the property’s fair market value at the date of death. You’ll only owe capital gains if you sell for more than that value.
- Renting the home creates taxable income, and you’ll need to track expenses, depreciation, and any major repairs.
- Vacant homes still incur holding costs such as insurance, property tax, and utilities.
Your Major Options for the Inherited Property
Here are the four primary paths to consider — each with its pros, cons, and best-fit scenarios.
Option A – Move In / Use as Your Primary Residence
Pros:
- You may qualify for the principal residence exemption, reducing future capital gains.
- Emotional value — keeps the family home in use.
- No need to manage tenants or leases.
Cons:
- You’ll cover all ongoing maintenance, insurance, and property taxes.
- Older homes may need updates before move-in.
- Selling later could expose you to changing market conditions.
Option B – Rent It Out (Long-Term or Short-Term)
Pros:
- Generates passive income while holding for future appreciation.
- You can deduct mortgage interest, repairs, and expenses for tax purposes.
- Keeps ownership within the family.
Cons:
- You become a landlord, dealing with tenants and maintenance.
- Rental income is taxable, and depreciation must be tracked.
- Vacancy and repair costs can eat into profits.
- Must follow Alberta’s landlord-tenant laws and maintain adequate insurance.
Option C – Sell via Traditional Public Listing (MLS)
Pros:
- Reaches the widest pool of buyers, potentially achieving top price.
- Simplifies the estate by converting the asset to cash.
- Professional marketing, showings, and negotiations handled by your Realtor®.
Cons:
- Takes time — Calgary homes take time to sell depending on price and condition.
- Requires commissions, staging, cleaning, or minor repairs to appeal to retail buyers.
- If the home is dated, you may have to settle for less than “retail” value.
Option D – Private Sale / Off-Market Sale / Sell to an Investor
Pros:
- Faster closing and fewer showings.
- Great for heirs who want to liquidate quickly or skip renovations.
- Flexible terms; often “as-is” with no required repairs.
Cons:
- Usually below full market value because the buyer assumes repair and carrying costs.
- Must vet investors carefully — avoid “we buy houses” scams/misinformation.
- Still requires proper legal and title work to protect both sides.
How to Decide Which Path Makes the Most Sense
Here’s a practical process you can follow before making your choice.
Step 1 – Clarify Your Priorities
Ask yourself:
- Do I need cash quickly, or can I wait for the right buyer?
- Do I want to keep it as income property or sell and simplify?
- How much time and effort can I realistically dedicate?
- What are my emotional or family goals with the property?
Step 2 – Assess the Property & Market
- Condition: Does it need major upgrades or repairs?
- Location: Is it in a strong Calgary sub-market (e.g., inner city, renovated neighborhoods)?
- Market Type: Is Calgary currently in a buyer’s, seller’s, or balanced market?
- Holding Costs: What’s the cost of waiting — insurance, taxes, maintenance?
- Tax Implications: What are the potential gains or liabilities?
Step 3 – Use the Strategy Finder Tool
Save time with our free online tool that evaluates your goals and property type, then recommends your best next move:
👉 Try the Home Selling Strategy Finder
It’s a quick, data-driven way to get clarity — whether you’re leaning toward a traditional listing, FSBO, or private sale.
Step 4 – Consult Professionals
Before finalizing your decision, always check with:
- An estate lawyer (for title transfer and probate).
- A licensed Calgary Realtor® familiar with inherited properties. (data on the specific market and demand for property type)
- A tax professional for guidance on capital gains, rental income, or deductions.
Quick Comparison Chart
| Option | Best For | Key Benefits | Key Drawbacks |
|---|---|---|---|
| Move In | You plan to keep the property | Emotional value, residence exemption | Maintenance costs, aging home issues |
| Rent It Out | Income-oriented heirs | Cash flow, long-term appreciation | Tenant management, taxable income |
| Sell via MLS | Top-price seekers with time | Max exposure, full marketing | Time, commissions, potential repairs |
| Private / Off-Market | Quick sale with less stress | Speed, flexibility, “as-is” terms | Lower sale price, limited exposure |
Final Thoughts
Inheriting a property in Calgary comes with opportunity and responsibility. The right decision depends on your goals, the property’s condition, and the market you’re in.
Don’t rush into any option until you’ve assessed all three pillars — price, speed, and convenience — and matched them with your needs.
You can start your evaluation in minutes with our free Home Selling Strategy Finder.
It’s a quick way to see whether selling, renting, or holding makes the most sense for your situation.