Death of a Tenant

[steven anderson]

Hi, I've got a rental property and unfortunately my tenant died. The rental paid in advance has expired and the appropriate notice has been given. Given a two year lease has been broken what is the drill with the bond - is that refunded to the tenant?

[damage]

Rental Tenant?

If so move on and find another tenant and refund the bond to the estate.

[Dunning]

Legally IHO you may be able to claim the bond as unpaid rent. You might even be able to go after the estate for the total remaining rent. Talk to a lawyer.

Morally it may better to move on and find a new tenant. Karma is your friend(if you believe in karma)

[Tan]

Link to tenancy site re death of a tenant.

http://www.dbh.govt.nz/tenancy-az-d

[mattinvestor]

hey steven anderson. your situation seemed a little awkward and challenging.
Did you end up sorting it out? WHat did you end up doing? just curious..

[revdev]

I had a similar situation a few years ago with an elderly tenant. I turned up one morning to mow the lawns and all the relatives where there - they told me she had died during the night.

Within 5 minutes, 1 daughter said "I know my mum was paying 1 week in advance, so can I have her rent back in cash?
As it happened she was initially paying a week in advance, but that went by the wayside some time back...

Within 10 minutes, 2nd daughter came up to me and said "I know my mum paid 4 weeks bond, can you pay that back to me in cash today?
er no, it's held by the DBH....

Nice family!

[mattinvestor]

hey revdev. Interesting story there.
It does seem a little awkward during those times, having the family coming after you immediately after the elderly tenant passed away.

[steven anderson]

In my case I refunded the bond. There were heaps of issues with regards being slightly under on rent and property not being clean. Found new tenants fairly quickly. My Property Manager had no idea of what to do, but had obviously googled the situation and protected her ass pretty quickly from potentially bad PR.

I think the karmic approach was the best thing to do. Over now, better tenants.

Can't believe family would ask for the rent (in cash), the morning of her death. That money would be owed to the estate and not any individual family member.

[eri]

you never know

they may have need $5,000 quick

for funeral expenses

[mattinvestor]

yeah i was thinking that the family wanted the cash quickly for funeral expenses, which can be pretty pricey if you haven't prepared for it (in the thousands of dollars!)

@steven anderson - yeah i reckon the good karma approach is best. It's a sensitive time and it's best not to make any issues especially while emotions are running high for family members.