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What Happens When a Tenant Dies in a Rental Property?

What Happens When a Tenant Dies in Your Rental Property

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One situation you hope never arises is finding out that one of your tenants has passed away inside the rental home. Unfortunately, it does happen from time to time. When a tenant dies in your property, it can be an emotional and stressful time for all involved. Most of the time, it’s very confusing, as you might not know how to deal with the deceased tenant’s belongings, lease terminations, and security deposit. However, you need to take steps as the property owner to handle the situation properly according to the law, especially in the sensitive case of a tenant’s death.

In this article, we will discuss what normally happens when a tenant dies and what you, as the landlord, must do. We’ll cover topics like contacting authorities, informing next of kin, changing property access, terminating the lease, handling unpaid rent, recovering property costs, and providing emotional support. By understanding the process, you can take the necessary actions to legally vacate the property and get it ready to rent again as soon as possible.

What Should You Do When A Tenant Dies

What should you do when a tenant dies?

You should contact the authorities, inform the next of kin, communicate with the deceased tenant’s estate, change property access, terminate the lease, handle unpaid rent, recover property costs, and provide emotional support.

1. Contact the Authorities

The first thing you need to do upon discovering a deceased tenant is contact the local authorities. Call 911 and inform them of the situation – that you have a tenant who has passed away inside the rental home. Do not enter the property or touch anything before authorities arrive.

The police or medical examiner will need to inspect the property and determine the cause of death. In some cases, they may declare it a crime scene and restrict entry while they conduct their investigation. Cooperate fully with any requests from law enforcement as they work to establish the details surrounding the tenant’s death.

2. Inform Next of Kin

Once the authorities give permission, you must notify the deceased tenant’s next of kin or emergency contacts listed on their rental application. Have this discussion in person rather than over the phone. Express your condolences for their loss and give them the contact information for the authorities or coroner handling the case.

Ask if they have any documentation like a will that provides details about handling the tenant’s affairs. Find out if they have immediate plans to claim any belongings left behind in the rental home. Note that legally, the next of kin has 30 days to remove the deceased tenant’s belongings before it is considered abandoned under most state landlord-tenant laws.

3. Change Property Access

For safety and security reasons, you’ll want to change the locks on the rental property as soon as possible. This prevents anyone other than approved individuals from entering until the proper relief of possession process is complete. Provide the new keys only to the deceased tenant’s next of kin or estate representative that you’ve been put into contact with.

You may also consider notifying your home insurance provider about the situation. Some policies have specific clauses regarding coverage in cases of tenant death that you want to make sure you understand. It never hurts to keep the insurer in the loop of significant incidents involving your rental properties.

4. Terminate the Lease

The lease or rental agreement with the deceased tenant officially ends upon their passing, which may result in a broken lease agreement. Most states allow you to give proper 30-day written notice to terminate a tenancy under these circumstances. Consult your state’s specific landlord-tenant laws as well.

If the rental was paid monthly, prorate any refund of rent owed from the date of death through the end of the month. Deduct this from the tenant’s security deposit and any itemized charges for repairs over normal wear and tear before returning the remaining funds. Provide the final accounting in writing to the tenant’s estate.

Set a reasonable deadline for removing the tenant’s belongings, such as 30 days from the date of notification. If the property remains after that time, consider it legally abandoned and dispose of it appropriately. Let the estate representative know in writing of this timeframe, and any unclaimed items will be discarded.

5. Handle Unpaid Rent

If the tenant died owing back rent on the property, you have the right to pursue those funds from their estate to the extent allowable by law. Coordinate with the deceased tenant’s executor to handle the security deposit and other financial matters. Talk to a local landlord-tenant attorney about properly filing a claim against the estate through small claims court if necessary.

Keep detailed records of all rent charges, payments, and balances owed to support your claim. The court will evaluate whether the estate has sufficient assets to cover legitimate debts and work to disburse funds fairly among all claimants and beneficiaries according to state statutes.

6. Recover Property Costs

It’s reasonable for a landlord to seek recovery of any costs associated with cleaning, deodorizing and repairs to the deceased tenant’s property after a tenant passes away inside the home. Submit paperwork with receipts documenting services like biohazard cleaning, new carpeting, or paint needed to prepare the unit for the next tenants.

Compile these expenses along with lost rent during turnover and present them to the tenant’s estate for reimbursement. However, only expect full payment if the estate is recovered. Do what is legally required to vacate the property as promptly as health codes allow. Get it cleaned and ready for a new start as soon as feasible.

7. Provide Emotional Support

While the legal procedures must be followed, remember that real people are grieving the loss of a loved one. Show compassion to the tenant’s family during this difficult time. Offer a listening ear if they need support through their emotions. Consider waiving late fees or working out a reasonable payment plan for outstanding balances.

Your primary role may be facilitating the move-out, but you can also pay respect to the life lived there. Make yourself available to answer any questions about final arrangements or connect families to outside resources. A little human kindness can make handling an unfortunate situation much more accessible for all involved.

What are the Implications and Considerations?

When a tenant dies in a rental property, several important implications and considerations arise:

1. Legal Rights and Responsibilities

Heirs: The deceased tenant’s heirs can have legal rights to the rental property, including the right to occupy or manage the lease.

Landlords: You are responsible for appropriately handling the situation, including reviewing the lease and communicating with the heirs.

2. State Laws

Variations: Different jurisdictions have unique laws governing tenancy after a tenant’s death. Understanding local regulations is crucial, as they can affect the rights of heirs and your obligations.

3. Impact on the Rental Agreement

The death of a tenant can lead to changes in the existing lease agreement. Depending on local laws, the lease can be terminated or transferred to the heirs.

4. Communication

Clear communication is essential. You have to notify or inform other tenants promptly, especially if it affects shared living conditions or responsibilities.

Contact OKC Home Realty Services today if you want expert guidance regarding the legal handling process when a tenant dies.

What to Do if a Tenant Dies in a Rental FAQs

What if no next of kin can be located for the deceased tenant?

If, after reasonable efforts, you cannot find any emergency contacts or relatives, notify the county public administrator's office. They will guide you in obtaining a death certificate. However, if you refuse to do so, they are responsible for handling the estates of residents who die without a will or known heirs. Thus, turn over any keys, leases, and other important documents to settle the accounts. Additionally, ensure you follow local and state laws regarding abandoned tenant property, which may involve storing the items for a specified period and potentially selling them at auction if no rightful heirs can be located.

Am I responsible for any of the funeral or estate costs?

You have no legal or financial responsibility towards the tenant's funeral, estate administration or other end-of-life costs incurred unless you specifically co-signed as a guarantor for such matters. Your role is to properly conclude the tenancy as per relevant laws.

Can I demand rent from the deceased tenant's surviving spouse or family?

No, the rental agreement was strictly between you and the tenant listed on the lease. Unless additional occupants are co-signers with independent rental obligations, you cannot hold family members responsible for rent, debts or other terms after the prime tenant passes away. The tenancy formally ends with vacancy of the property.

Can I withhold the tenant's belongings indefinitely?

No, most states limit the landlord’s ability to hold a deceased tenant’s possessions to only 30 days or less after providing proper written notice. It is crucial to understand state and local laws regarding these timelines, as failure to adhere to them could result in legal disputes around abandoned property handling.

Is there a grace period for paying rent after a tenant dies?

This varies by jurisdiction. Some laws do allow a grace period for rent payment for heirs to settle matters before rent is due.

What happens to the tenant's belongings?

The belongings generally become part of the deceased's estate and must be handled according to the will or state laws regarding inheritance.

Should the landlord change the locks?

Yes, landlords can change the locks for security reasons, but they should consult legal advice before doing so.

If a tenant dies, what happens to the deposit?

When a tenant passes away, the security deposit generally should be returned to the tenant's estate or heirs according to local laws. You can deduct unpaid rent or damages beyond normal wear and tear. You must provide an itemized list of deductions and notify the tenant's heirs or estate executor. However, specific rules vary by jurisdiction, so it's important to consult local laws. If there is a probate process, the estate’s administration can handle the deposit.

scott nachatilo

Author

Scott Nachatilo is an investor, property manager and owner of OKC Home Realty Services – one of the best property management companies in Oklahoma City. His mission is to help landlords and real estate investors to manage their property in Oklahoma.
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