Guardianship and Renting Out a Home

Guardianship is a legal arrangement in which a court appoints an individual—called a guardian—to manage the personal and/or financial affairs of someone who is unable to do so themselves, often due to age, illness, or disability. When the person under guardianship (the ward) owns real estate, such as a home, important legal and financial considerations arise if the guardian wants to rent out the property.

In many cases, a guardian may seek to rent out the ward’s home to generate income for their care, especially if the ward is in a long-term care facility and no longer resides in the property. However, a guardian does not automatically have the authority to rent out real estate. They typically must seek court approval, particularly if the guardianship is of the estate (financial matters) and not just of the person.

Renting out the home must be in the best interest of the ward, and the court will usually assess whether the rental income will directly benefit the ward and whether the property is being managed responsibly. The guardian is also required to keep accurate records of rental income and expenses and report these in periodic accounting to the court.

Additionally, guardians must ensure the home is maintained properly, complies with landlord-tenant laws, and that any lease agreement protects the ward’s property. In some situations, renting the home may even help preserve the property and prevent foreclosure or forced sale.

In conclusion, while guardianship allows for broad decision-making authority, renting out a ward’s home involves careful legal oversight. Guardians must act prudently, seek court approval when necessary, and always act in the ward’s best financial and personal interests.