When someone rents residential property and dies during the lease period, the lease does not terminate automatically. The estate of the tenant will still be liable for paying rent for the duration of the lease period.
Death does not automatically terminate tenancy so landlords must either go to court to regain possession or work out an agreement with the deceased’s personal representative/executor administering the estate. The steps that a landlord will take will depend on whether the personal representative continues to pay rent or not. If the landlord continues to receive rent payments, the landlord cannot terminate the lease.
If the personal representative does not continue to pay rent, a form called “failure to pay rent” is available in the district court that can be filled out to initiate legal action. You must give notice to the personal representative that you are taking this action. There is also the possibility that you may be able to negotiate a payment plan or an early termination agreement with the personal representative instead of going to court.
Personal Property
The personal property (furniture, clothing, personal items, etc.) inside the rental is still considered property of the deceased and must be made available to the personal representative or designated family members to be picked up. Be careful in this situation because it is not uncommon for con artists to see obituary notices and then contact landlords posing as next of kin of the deceased individual. Check the records you have for emergency contacts provided by that tenant before you allow anyone access to the personal items left behind.
Security Deposit
Depending on the condition of the property, you will need to address the security deposit as you normally would when someone vacates. If the property is in appropriate condition and you would normally under those circumstances return the security deposit then you should return the security deposit to the deceased’s estate.
As soon as you learn of the death of a tenant make sure you take action. You want to mitigate any damages immediately so that you can rent the property to a new tenant as soon as possible. For more information on how to handle residential leases after the death of a tenant or if you are serving as a personal representative for someone that died during the term of a residential lease, please contact the experienced Estate Administration attorneys at Stouffer Legal in the greater Baltimore area.