Updated July 31, 2026. Quick answer: a sibling co-owner living in the inherited house generally owes the others no rent by default — every co-owner has the right to occupy the whole property, and absent an “ouster” (excluding the others) or a written agreement, courts in most states will not impose back rent. That surprises the siblings who moved out. If rent is the plan, put it in writing: a market-rate figure (an appraiser or three listings), who pays taxes and insurance, and — the clause families forget — whether unpaid amounts offset a future buyout.
The tax side of family rent
Rent received is ordinary income to the owners in proportion to their shares, with the usual rental deductions — but below-market rent to family can reclassify the property as personal-use, capping deductions at a fraction of what a real rental gets. Charging documented fair market rent is not unkind; it is what keeps the deductions. And rent never builds the occupant equity — if the endgame is ownership, run the buyout math now and treat rent as the bridge, with any arrears written into the price. If the occupant will not engage at all, that is the options-ladder conversation — and note that occupancy alone, without exclusion, is rarely the legal lever the outside siblings hope it is.