Oh No, a Resident Passed Away in My Rental Unit, What Now?

Property Management

As the landlord or property manager of a rental property, you’ll have to handle various tenant concerns and issues. But there is one concern that many of us may not be ready for: tenant death. Having someone pass away isn’t just a tragic event. It can also be a stressful and complex process for both families and landlords.

ExactEstate is your trusted resource for all things property management, and we know how to handle tenant death in your rental unit. In this article, we’ve shared the immediate steps to take, what happens with the lease and possessions, and other related topics. Here’s all that you need to know.

What To Do When a Resident Dies

Reach Out to Authorities

Since people spend most of their time inside their homes, there’s a high chance that they will pass away in their rooms. This is especially true for senior housing as the median age for people found dead in their homes is 73 years. Aside from natural causes, people can also pass away because of accidents, which is more prevalent in younger age groups.

So if you or your staff discover a dead tenant in one of your units or within the premises of the rental property, the first thing to do is contact 911 or any appropriate authority. Don’t deal with the deceased on your own. Let the experts take care of the situation. You can only take action when the authorities allow you to do so.

Secure an Official Notification

There are two ways you’ll learn of a tenant passing away. First, you could experience the scenario above and discover them on your property. Second, a loved one or an executor will notify you. Whichever the case, you’ll need to wait for an official written notification of the tenant’s passing. This could either come from the family or the executor, the person that administers the tenant’s will.

Once you have the documents, only then can you begin transitioning the unit for the next tenant. The written notification will also be useful for recouping financial loss and working with the tenant’s loved ones.

Secure the Unit or Property

When a tenant dies, the landlord becomes responsible for keeping the unit and possessions safe from theft, which happens more commonly than you might think. Securing it is also necessary to help executors properly administer the will of the tenant.

So once you receive the written notification of death, start securing the windows, doors, and locks. This practice can even be done before receiving the notification in some states. You’ll also need to coordinate with property management staff to spell out what they can and can’t do based on their contract.

4. Communicate With the Family or Executor

Having clear communication with the tenant’s loved ones or executor makes the entire transition process smoother. Unfortunately, a lease does not terminate upon a resident’s death, and we’ll discuss that in depth in the next section. This means that you cannot repossess the unit upon the tenant's death nor can you remove their belongings immediately.

You’ll need to work closely with the family or executor to streamline the transition. For those who don’t have an executor, you might need to work with probate courts or legal representatives for the lease. Thankfully, software like ExactEstate has tools that allow you to consolidate all manners of communication in a single platform.

So What Happens to the Lease?

As mentioned, it doesn’t automatically terminate. The lease agreement extends to the termination date, even upon the tenant’s death. Depending on the type of contract, there are two ways this could play out:

Month-to-Month Lease

In month-to-month or short-term lease agreements, the tenant and landlord will renew the occupancy terms every month. For this arrangement, the resident’s death serves as both a signal to end the lease and a 30-day notice. This means that the tenant’s estate, through the executor, will pay the remaining days. After that, you can find another tenant and rent the property.

Long-Term Lease

It gets a bit more complicated for long-term leases. When a tenant dies, their estate will be the one paying until the lease expires. However, most executors don’t want to pay for an empty room. Landlords might also want to rent the unit or property to another tenant as soon as possible.

There are two ways to go about this. First, you can work with the executor to treat the tenant’s death as a broken lease and negotiate payments until all the late tenant’s possessions are gone. You can also break the lease without consequence, but be sure to balance your interests with the morally correct choice. For example, a broken lease means you get to keep the security deposit, but this might spark bad blood between you and the late tenant’s family.

What Happens to the Deposit During a Tenant Death?

You cannot keep the security deposit after a tenant’s death as some may lead you to believe. It still works the same way as a living tenant who is about to end their lease. This means that you’ll have to return the amount to the executor, legal representative, or loved one. Still, you can use the security deposit to cover repairs, unpaid rent, and other expenses outlined in the lease agreement. To avoid any issues with the executor or loved one, be sure to provide an itemized list of all the security deposit deductions.

There are cases when the deposit is not enough to cover the expenses. When this happens, you’ll need to work with the executor to secure the additional funding needed.

Handling the Belongings of a Dead Tenant

So, what do you do with a late tenant’s belongings? Your best approach is to work with the executor or family to coordinate the item removal. As a landlord, you cannot do this yourself, but it can be a major hassle especially if you want to rent the property soon after the death.

For short-term leases, it’s much easier to set timelines for removing the possessions. The deadline will be the next month. If the items are still there by then, then that might constitute another month of payment. For a long-term lease, you’ll have to negotiate with the family or executor. You can still enforce payments while the items remain in the unit.

Accomplishing the Release to the Rights of Possession

Let’s say that everything went smoothly and the property is finally clear of all the late tenant’s belongings. The property has also been cleaned thoroughly and repaired for all the damages. The next step is to have the late tenant’s next of kin sign a Release to the Rights of Possession form.

In this document, the signatory will agree that the tenant is no longer living in the rental property as of a given date. They will also confirm that all the tenant’s belongings are no longer in the unit. Once it’s signed, you’re free to rent a room or property. The Release to the Rights of Possession form also serves as insurance against other issues that may arise, like loved ones claiming leftover possessions in the unit.

Use the ExactEstate Platform for Managing Tenant Death

There’s a lot going on during the death of a tenant. You’ll need to communicate with executors and families, negotiate lease agreements, and secure the possessions of the dead tenant, amongst many other processes. To make things easier, use software like ExactEstate. This platform consolidates all the operations of a rental property into a single place. From online payments to tenant screening, you can do it all here! Request a demo today!