My tenant died, what next?

kavics17

Hi Guys,

Advice would be greatly appreciated.

My tenant died of heart attack last weekend (12th May), I was informed by his wife and daughter who live in a different city about a 100 miles away. The funeral is, I believe, next week.

I emailed the wife saying that they didn't need to worry about the flat just now, we can come back to the issue after the funeral. I haven't received notice from them for the flat. The rent is currently paid till the 10th June and I have 1 month deposit.

I want to do this the right way, and I can afford losing one month rent (and giving back the deposit). I don't want to push them but at the same time I would prefer to know when I can put the flat back on the market. Obviously there is no clause about death in the tenancy agreement and the tenant only has been in the flat for 9 months.

Has anyone been in this situation? What's the best way dealing with this issue?

mlz1413

I'd like to know the legal response to this too and I don't think your average AST covers it!

Firstly are you in England / Wales? Scottish law is different.
Was the flat let fully furnished or are the contents the tenants?
Do you need notice from the next of kin? is dieing not an end to the current agreement between you and him?
You say T had only been there 9 months Is it a fixed term of a year? or a 6 monht now on periodic tenancy?

GillsMan7

From http://www.syj.net/Article/detail.asp?ArticleID=7

If the tenant dies testate, an NTQ must be served on his personal representatives, in whom the tenancy will have vested. Service may be effected upon them personally or at the property as long as the tenancy agreement incorporates the provisions of section 196 of the Law of Property Act 1925. If, on the other hand, the tenant dies intestate, the tenancy will vest in the Public Trustee until the grant of administration. Once the landlord has notice of a tenant's death, an NTQ must be served to determine the tenancy. The notice should be addressed to "The Personal Representatives of" the deceased and left at or sent at his last known place of residence or business in the United Kingdom, and a copy of it, similarly addressed, is served on the Public Trustee.
In general an NTQ must state the date it is to expire, and this must be a rent day. In addition, section 5(1) of the Protection from Eviction Act 1977 provides that no notice (by a landlord or tenant), to quit any premises let as a dwelling, will be valid unless (inter alia) it is given not less than four weeks before the date on which it is to take effect.

The tenancy doesn't come to an end just because the T dies.

In practice, though, I'd speak to the people concerned. Of course you have to be sensitive, and you're right to wait until after the funeral IMO. That said, it's also a business, and you can't expect to hang around forever. It sounds like you're being sensitive so well done for that.

The deposit will need to be returned (minus any deductions) to the deceased's estate.

may_fair

T's death doesn't end the tenancy, but it's no longer an assured shorthold tenancy (assuming it was before), it's now a common law tenancy.

Basically, the T's estate remains liable for rent for the remainder of the fixed term. In practice, it's likely that T's executors will agree an early surrender with you (if that's what you want).

Assuming the rent paid in advance up to 10th June was owing under the terms of the contract at the time it was paid, it is not refundable.

poppysarah

GillsMan7 wrote: »

The tenancy doesn't come to an end just because the T dies.

You know technically it does.

No one wants a corpse in the flat for 3 months until the tenancy officially ends.

:-/

tyllwyd

Has the tenant left property in the flat? I'd imagine it will take at least a week or two for the relatives to arrange for it to be removed so that you can have the flat cleaned and rented out - at the least, I'd say you are entitled to keep the rent paid so far and to retain the deposit to cover the costs involved (morally anyway, I have no idea of the legalities!).

kavics17

The flat was unfurnished and yes, the tenant has everything in it. The tenancy agreement was for 12 months (fixed) but obviously I won't ask the wife to pay for the remaining term(she must have enough to deal with), and will refund her the deposit as soon as they empty the flat. The flat is in a good location, will have no problem renting it out.

So would it be the right thing to serve the NTQ next week and ask them to empty the property by the end of June? That will give her a month to organize everything and also for me to look for new tenants from 1st July. I will lose 20 days of rent but that's fine by me. It was in the original contract that I could show the flat to viewers in the last month of the tenancy agreement, I assume this is still valid and I can let viewers in? Do I need to ask permission from the wife (I assume she wouldn't mind but just want to know if I have the rights)?

RAS

kavics17 wrote: »

It was in the original contract that I could show the flat to viewers in the last month of the tenancy agreement, I assume this is still valid and I can let viewers in?

Erm no. That clause would be deemed unfair; your tenant and by extension your tenant's representatives have have the right to quiet enjoyment for the duration of the tenancy.

You need to ask the tenant's family whether they want to continue the tenancy or surrender early and do this properly. As part of the discussion on early surrender, you might agree viewings in exchange for the lost rent, but you have no more right to this than they do to your giving up rental income.

GDB2222

kavics17 wrote: »

So would it be the right thing to serve the NTQ next week and ask them to empty the property by the end of June? That will give her a month to organize everything and also for me to look for new tenants from 1st July. I will lose 20 days of rent but that's fine by me. It was in the original contract that I could show the flat to viewers in the last month of the tenancy agreement, I assume this is still valid and I can let viewers in? Do I need to ask permission from the wife (I assume she wouldn't mind but just want to know if I have the rights)?

You seem to be looking at this the right and decent way, but you are assuming that the family will want the tenancy to come to an end fairly quickly. In practice, though, there's all the furniture to deal with, and they are 100 miles away and not in the greatest position to deal with it. I'd do the following:

1. Wait until a couple of days after the funeral and then send a letter pointing out that there is all T's personal stuff in the flat and do they want to collect it?

2. Ask them about the furniture. (If you can use it, they might be grateful for an offer for that.)

3. Ask them whether they want to give up the tenancy as soon as they have cleared the flat. Mention that there's a deposit to be returned if the flat is vacated and cleaned by 1 July.

4. Ask them whether he left a will and who the executors are. Any deposit needs to go to the executors, not the wife and family. To be safe, wait until probate has been granted. Strictly, it's the executors who need to agree to giving up the tenancy.

I don't see how you can do viewings until it's been cleared out. Otherwise, new tenants are going to ask who the stuff belongs to, and they won't want to take the flat when you tell them what happened.

Teflon_mike

hi...
don't know if this helps..
i work in housing benefits and if your tenant was on benefits he would only be entitled to help with rent as long as he was alive at the property. As he died he has no liability to pay rent so rent cannot be chased.
it's the same for council tenants, if they die they are charged up to the sunday after death or the sunday if they die that day.

with regards to any next of kin, as they are not on the tenancy agreement they cannot be charged rent for the property.

best thing to do is inform council tax and put the house up for rent again.

GDB2222

That may be how housing benefit looks at it, but it does not reflect the legal position under the lease, which was for 12 months. The benefit of the lease and the liability to pay rent are now both part of the deceased tenant's estate - which may not have any money in it ofc.

The OP has said he'll do the decent thing and not hold the estate liable for the balance of the term, but he's not obliged to do that.