As a private landlord, it is important to know what your responsibilities and obligations are, both to protect you and your tenants. Your duty is to make sure you provide a safe, warm and welcoming property for a tenant, and their duty is to make sure they look after it and pay you what has been agreed, at the right time.
But, what happens when a tenant dies?
In this article, we look into what happens when a private tenant dies, who is responsible for what and how private landlords can go about getting their business back up and running as soon as possible.
Of course, renting can be complicated and be governed by all sorts of rules and regulations, as set out in the Landlord and Tenant Acts, the bible for any private landlord or tenant. So, make sure you swat up on everything you need to know!
What happens when a private tenant dies?
When a private tenant dies, there are lots of legal processes that kick in, some that will be dependent on what is in the tenancy agreement and the tenant’s living situation. For example, whether they are a sole tenant (the rental agreement is in their name only and/or they live alone) or if they are a shared tenant with someone else.
If they were a sole tenant, as with all deaths, matters of probate will begin. If the tenant had a will, the person named as the executor will manage the rights and obligations of the tenancy agreement. Without a will, the court would appoint an administrator to do this.
The executor or administrator should then arrange to pay off any outstanding rent or get back deposits made from you. The deceased person’s estate might need to settle any rent arrears or damage costs, based on the tenancy agreement.
Any personal belongings left in the property should be returned to the Executor.
Getting legal advice is recommended in this situation so as a private landlord, you can be 100% sure that the executor has the right authority to deal with your tenant’s affairs, which a solicitor will help you to confirm.
Does a tenancy agreement end when a tenant dies?
No, a tenancy agreement doesn't automatically end when a tenant dies. The executor or administrator might end it by giving the agreed notice to the landlord, or a spouse/ civil partner could choose to continue the tenancy if they qualify, which we will go over in the next section.
As the landlord however, the most straightforward approach for you would be to end the tenancy through a mutual agreement. You and the executor need to agree this together, under new terms, meaning you don’t have to follow the notice rules as set out in the previous contract, and can agree to end the agreement mutually asap.
What happens to the remaining residents if a sole tenant dies?
When a sole tenant dies, but they lived with a spouse, civil partner or cohabitee who were not co-tenants, most agreements allow that person to take over the tenancy after the tenant's death, commonly known as ‘succession’. The person can only do this if they had been living in the property as their only home at the time of the tenant’s death.
If there are remaining tenants that do not fall into the category above, for example friends, succession rights do not apply and they will not automatically inherit the tenancy. If a friend who lived at the property alongside the deceased tenant did want to continue living in the property, they would need to negotiate with you as the landlord to agree a new contract and tenancy agreement.
How can I end a tenancy if a tenant dies?
We know that ending a tenancy when a tenant dies can seem insensitive, however as a landlord, you need to ensure that your business continues and more than likely, the executor involved in managing the tenant’s affairs will want to sort things out as quickly as possible.
As mentioned above, find out if the tenancy agreement grants succession rights, which would allow certain individuals, as mentioned above, to take over the tenancy. This doesn’t automatically mean those people will want to take over the tenancy, so communicate with them as soon as possible to find out if they wish to take over the tenancy, and arrange for any documentation needed to formalise the agreement.
If no succession rights apply, give the appropriate notice to the rest of the occupiers to end the tenancy or legally evict them using a Section 21 notice, known as a “no fault” notice. This will all depend on the type of tenancy agreement your tenant had, however would work under the most common assured shorthold tenancy (AST) on a fixed-term or periodic basis.
After the notice period expires, or when eviction has been successful, assess whether the property has been properly vacated and emptied. If the tenancy included a deposit, follow the agreed-upon steps for returning or handling the deposit.
Who is responsible for rent arrears if a tenant dies?
Unpaid rent, or rent arrears, becomes the responsibility of the executor or administrator, who should take charge of paying any debts, including rent, taken from their estate.
If agreed by the executor, you can use the security deposit to cover any unpaid rent or damages, however, any deposit left remaining or where an executor has not agreed this, should be returned to the tenant's estate.
If certain family members can take over the tenancy under succession rights, they may handle unpaid rent as agreed.
What happens to the deposit when a tenant dies?
When a tenant dies, you should deal with the deposit as you normally would. Carry out a check-out assessment of the property to work out if there are any damages to the property that need to be taken out of the deposit, as laid out in the tenancy agreement. This should be done before it is released to the executor.
If there remains any unpaid rent, you can deduct the amount from the deposit.
What should I do if my tenant dies in my property?
It can be a shock if your tenant dies in your property, so it is important to try and keep calm and take action as quickly as possible.
Firstly, contact the police and/or emergency services immediately who will take charge of the situation, and contact the next of kin, or the person responsible for handling the deceased tenant's affairs.
The police may determine that your tenant has died under suspicious circumstances, which could mean that your property becomes a crime scene and the police need access to the property for a set amount of time. As always, you must follow your instructions in this situation in supporting the police through the investigation.
Once the police grant access to you following their investigations, you should secure the property to prevent unauthorised access, as you would when a tenant moves out. At this point too, document the condition of the property, and secure any personal belongings left by the deceased tenant so you can return them to the executor of their estate, or an agreed family member.
Does landlord insurance cover the death of the tenant?
Landlord insurance doesn’t normally cover the death of a tenant. Landlord insurance is mostly designed to protect you from specific risks related to property ownership and rental activities, like property damage, liability claims, or loss of rental income.
The death of a tenant is generally considered a personal event rather than a property-related risk.
If a tenant's death leads to the specific risks mentioned above that are covered, for example if the cause of death led to damage to the property, you should seek legal advice to understand how your insurance covers you, and what you could be entitled to. A solicitor will be able to read your insurance cover in detail, and find the right support.
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