Resources for Landlords and Real Estate Investors

What Happens When a Tenant Dies? 

Yes . . . What does happen? Some landlords have never considered facing that situation, while other property owners consciously choose not to think about that scenario. Still, all would have to admit that it’s better to be prepared than to be caught off guard. So, how about we dive into answering that very question.

Let’s begin with this: what are the landlord’s responsibilities should a person die while residing in one of their rental properties?

It goes without saying that should the landlord be the party to discover the tenant has passed, a pronto call to 911 is in order. The appropriate authorities will then handle the immediate next steps.

After that, the landlord must wait for official written notification of the tenant’s death from the next of kin or the executor of the tenant’s estate. This notice will be critical in assisting family members, preparing the property for new occupants, and recouping any financial loss.

Securing the property

Landlords must protect the deceased tenant’s property.

· Make sure doors and windows are locked. If the tenant lived alone, changing locks may be advisable.

· Ensure that any pets are properly cared for, which may require taking pets to a shelter.

· Take extreme care not to touch any of the deceased tenant’s property. A landlord may wish to have a witness present or use video equipment to record any time inside the property.

Communication with the executor is crucial.

Establish an open line of communication with the deceased tenant’s executor. Remember, the lease agreement does not automatically terminate upon a tenant’s death. That means you don’t have the right to repossess or remove the tenant’s possessions. The executor (or an assigned individual/probate court) must be involved in this process as part of their responsibilities to the estate.

Keep in mind that the person(s) will be dealing with many details of the late tenant’s estate, in addition to grieving the loss of a loved one. While your focus may center around transitioning to a new tenant, be patient and as kind and helpful as possible.

What about the lease?

In the case of a month-to-month lease, the written notice of the tenant’s death will act as a 30 days’ notice, effectively bringing the lease to an end. The tenant’s estate will be responsible for paying that last month’s rent.

For a long-term lease, the estate is technically and legally responsible for rental payments until that lease expires. However, it’s often in the landlord’s best interest to find a new tenant rather than insist the estate continue paying through the end of the

original lease. This is also the more compassionate approach. In this scenario, the estate would pay rent until the landlord secures a new tenant. Another option is to allow the deceased tenant’s estate to break the lease with no consequences. Again, the best approach balances what is best for the business and those handling the estate.

If the property sustained damage beyond standard wear and tear, the landlord has the right to cover the necessary repairs/cleaning from the security deposit. Any remaining security deposit should be returned to the tenant’s estate.

Having an established process for handling the unfortunate circumstances of a tenant dying will make a difficult situation less taxing for everyone.

About Rentals America

Rentals America provides full-service property management for residential rental properties. Our team is completely dedicated to property management and we’re here to help landlords navigate the rental market.