Tenant Death – The Property Manager’s Guide

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This is a revival of a post from a few years ago. I’ve had a couple of emails recently from property managers across the U.S. who are dealing with this issue right now, and they’re looking for answers. So, what does the property manager need to know (and do) when a tenant of ours dies in one of our rental units?  

Yes, I know. This is a rather depressing topic. Not something we ordinarily want to discuss. Yet, if you’re in this business long enough, eventually, someone’s going to die in one of your rental units. It happens. In my 30+ years as a property manager, I’ve had three deaths. The first was a drug overdose; the second a “peaceful” death, and the third was suicide.

No matter the circumstances, there isn’t anything much more disturbing than to find a dead body in an apartment or rental house you manage. The event can haunt you for months. At the moment you discover the death, it’s easy to make critical mistakes – confusion takes hold, and we don’t always think clearly about what we should be doing.

 

Following are a few guidelines to help you deal appropriately with a death in one of your rental units:

“The Best Advice I can give you is do not go into the house, don’t use any of the utilities i.e. phone etc. This will make it easy for the Police when you say I only went to here saw and left and called the police. The less time spent in the scene the better for preserving evidence. Sometimes it may not be a death of Natural causes , but a Homicide, so Evidence preservation is paramount.”

Charlie Michael
SPD Retired
Elko, NV

  1. First things first. Call the police. Whether the death was “natural” or in some way related to a crime, it is a police matter. Do not touch anything in the rental unit, and certainly do NOT move the body. Wait outside for the police to arrive. You will need to make a statement. The police will examine the property, call the coroner, and release possession of the property back to you, once the body is removed.
  2. Contact the deceased’s next of kin. Your tenant’s rental application will likely have contact information for relatives. There will be many questions for which you do not have answers. Refer the family to the police for details. Do not speculate on the cause of death, or any circumstances surrounding the death.
  3. Contact the property owner. This is likely to be a very difficult conversation. The rental property owner is going to rely completely on your expertise as a property manager, and your guidance here. It is your job to orchestrate an orderly transition, and assure your owner of your competency in handling the matter.
  4. Contact the owner’s insurance agent. In most cases, the expenses connected with a death in a rental property can be an insurance claim on the owner’s policy. The insurance adjuster will likely guide the process of restoring the unit to rentable condition. Remember that, regardless of the cause of death, you are dealing with potentially hazardous conditions. Only use licensed professionals for cleanup work. This is not the job of a handyman.
  5. You will likely need to talk to the neighboring residents. There will be many questions. Once again, it is not your job to speculate as to the cause of death, or circumstances surrounding it. Assure other tenants that you will handle the situation professionally. They may simply need an opportunity to vent their fears and frustrations. Yes, sometimes we’re in the business of counseling our owners and tenants.
  6. If the death was a violent one, you may have to deal with the press. The rules here are the same with anyone you talk to. Do not speculate, and do not share private or personal information about the tenant, or your client. If you are an on-site manager, refer press inquiries to the property manager.
  7. Secure the unit. Make sure all doors and windows are locked at all times. Remember, you are responsible for the safekeeping of the tenant’s personal property until it is legally claimed by family members. In most cases, you will need a court order to release the personal property. Check with your attorney.  When releasing property to the family, be sure you know who you’re releasing the property to. Make sure the family member is authorized to claim the property, check identification, and get a release signed by the family member who claims the deceased’s property.

Do I have to tell a new tenant about the death?

In many states, property managers are not required to disclose a death in a rental unit to a prospective tenant, unless the death was related to a defect in the unit that has not been corrected. For example, if a tenant died from a fall because the stair rail gave way, and we haven’t properly repaired the rail, it’s a material fact – it must be disclosed. Otherwise, there is no obligation to disclose the death. However, some states do require disclosure of this fact. Check with legal counsel, and be sure you know the requirements of your own state.

Just because you might not be obligated to disclose the death doesn’t mean it wouldn’t be in your (and your owner/client’s) best interest to disclose it. Consider this situation – a situation I experienced with my very first tenant death.

The apartment was located in a multi-unit property. Most of the neighboring tenants were long-term residents, and were friendly with one another. Naturally, they all knew about the death. Imagine not telling a prospective resident about that death, and then having him learn about it via his neighbors, after moving in. This sets the stage for a relationship between you and your new tenant based on lack of information and mistrust. Not good for you, your owner, or the new tenant.

Rather than keeping the death a “secret,” I sought the owner’s permission to disclose the death to prospective tenants, before they committed to rent the unit. I easily found a new tenant for the unit who didn’t care that someone had died there before. The unit had new carpet, paint, and window coverings, it was located in the area she wanted to live, and she was very happy to have found it. The honesty conveyed by my disclosing the death set the stage for a positive landlord/tenant relationship. She ended up living in that unit happily for several years, until she bought her own home.

There’s no doubt, discovering a death in one of your rental units is tragic, no matter the circumstances. Handling the matter with a calm and professional attitude will serve you well.

 

Have you experienced a death in one of your rental properties? Do you have tips or advice to share with the rest of the property management community? Please do so, by posting a comment on this story.

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Judy’s Bill Watch List – Nevada 2013 Legislature

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NevadaThis is shaping up to be a very light year for bills impacting the property management industry in Nevada. Both landlords and tenants have little to watch, in terms of new legislation on the horizon. Property Managers may be interested in a few of the items on my watch list, however.

 

Unless something changes significantly in the next few weeks, this is the last of my posts on the Nevada 2013 Legislature. I’ll keep you informed, however, should circumstances warrant a “heads up” for Nevada Property Managers. For now, in no particular order, here’s what I’m watching. You’ll note that each bill number listed links to the bill information itself:

 

Bill # Sponsor Title / Details
UPDATED: 4/17/13. Bills that didn’t make it out of the first house by the April 12 deadline have been removed from my list. The remaining bills passed the first house, some with amendments, and some as originally drafted. They now go on to the 2nd house, where they must be voted on by May 17th.
AB 26 Nevada League of Cities and Municipalities Reduces statutory rate of depreciation of improvements made to real property for purposes of determining the assessed valuation upon which property taxes are levied.
AB 33 Office of the Governor Requires partial abatement of property taxes for existing nonresidential buildings that meet certain “green building” standards upon renovation or retrofitting.
AB 75 Assemblyman Aizley Revises provisions governing the publication of property tax rolls.
AB 66 Taxation Property taxes.
SB  118 Brower Reduces standard of proof in property forfeiture cases.
AB 75 Aizley, Carlton et al Changes publication of tax rolls (allowing internet) in Washoe and Clark Counties.
AB 284 Flores, E. Anderson Provides for early termination of rental agreement by victim of domestic violence.
SB 278 Ford, Jones, Healey, Spiegel, Frierson Expedited foreclosure provisions for abandoned residential property.
SB 139  Multiple Sponsors Adds gender identity/expression to list of felony hate crimes.
SB 373 Segerblom, Parks, Spearman, Atkinson, Kihuen Money judgments – allows court to permit installment payments for judgments; increases debtor income that is exempt from attachment.
AB 334  Multiple Sponsors Exemptions to Contractor Licensing requirements – expanded
AB 110 Ohrenschall Prohibits discrimination based solely on breed for determination of dangerous canine.
SB 47  Commerce, Labor and Energy Exempts attorneys from licensing under mortgage div (as foreclosure consultants or purchasers), if they provide a “covered service.” Opens a big door of opportunity for new income stream for lawyers.
AB 332 Spiegel, Ford This one seems to pair with SB 47. Affords a process by which an abandoned property foreclosure/sale/resalee can occur. Prevents declaration of void sale, if buyer at auction or next level buyer occupies the property.
SB 233 Cegavske, Hardy Removes provisions of state law that are in conflict with federal law, placing distance limitations on group homes.
AB 194 Multiple Sponsors Provides for criminal liability for someone who damages leased (rented) property (real or personal).
SB 402 Roberson Lowers fees for R.E. license renewals done within 1 year of expiration.

 

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Nevada Seeks to Protect Tenants Who Are Domestic Abuse Victims

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stopping handProperty Managers in Nevada will want to follow this one…

 

Nevada Assembly members Lucy Flores and Elliot Anderson have introduced legislation that, if passed, would significantly amend the state’s Landlord/Tenant law to allow early lease termination for victims of domestic violence.

 

AB 284, introduced on March 15th, would allow a tenant to terminate his/her lease on 30 days’ notice, and/or require the landlord to change the locks on the rented property, if that tenant can substantiate that he/she is a domestic violence victim. The proposed bill provides three alternative methods of establishing the tenant’s status:  (more…)

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Nevada Legislature 2013: AB 334

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belt with tools holding by manJust introduced yesterday, AB 334 is the bill we’ve all been waiting to see. It’s short and sweet; only 4 pages, but its impact is a big one! The bill summary reads:

“AN ACT relating to contractors; exempting certain property owners, licensed real estate brokers and salespersons from provisions relating to contractors; and providing other matters properly relating thereto.”

 

As Contractor’s License Law in Nevada currently provides, a property owner may build or improve a residential structure on his/her property, as long as the structure is intended for the owner’s occupancy, and not for sale or lease within a year. AB 334 removes the limitation that the property be solely for the owner’s occupancy, unless a building permit is required for the work.

(more…)

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The Four Agreements of Property Management: #2 It’s not about you.

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Angry_man (1)

 “There are moments at work where my mind wanders to happier times… like being in the dentist’s chair. Yes, my work is a vessel of fun. “Fun,” like rusty sword-swallowing fun!”

Tim Lambdin

Real Estate Licensee, Property Manager

35-year industry veteran

Property Management can be a very challenging profession, in terms of communication. Most often, when the telephone rings, it is a problem. The tenant is unhappy because something needs to be repaired. The owner is unhappy because he’s not making as much money on the property as he thinks he should. The vendor is unhappy because he wasn’t paid the day he submitted his invoice. Property Managers must balance the needs and wants of all parties in landlord/tenant relationship, whether residential or commercial, while at the same time setting appropriate boundaries, mediating disputes, and communicating difficult messages.

(more…)

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Collecting Bad Debts Fairly

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vector image of arrow sign going up while money written undernea

 

Property managers often ask me how I handle pursuing tenants who move out owing sums in excess of their deposit.  Owners so frequently expect the property manager to act as a collection agency, and many of our contracts do not address the manager’s responsibility for those activities.  Furthermore, federal law strictly regulates the property manager’s efforts in collecting tenant debt.  What should the property manager do in these cases?

 

Make sure your owners know your policies.  Communicate those policies in writing.  Your management contract should specifically spell out what you will and will not do in the event of “bad debts” by tenants.  Should the situation arise, remind your owners of those policies and any associated charges.

 

Your records speak for themselves.  Prove it or lose it!  If you are unable to prove a debt, you will be unable to collect it. (more…)

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Disparate Impact: You don’t have to intend to discriminate to violate fair housing law!

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JuEqual_Housing_Logo_GIFst today, The U.S. Department of Housing and Urban Development (HUD) issued its “final rule”   on disparate impact under the federal Fair Housing Act.

This final rule responds to a heated battle between housing providers (broadly defined to include all parties involved in selling, renting, insuring, lending, and zoning of residential property in the U.S.) and fair housing advocates that ended up in front of the Supreme Court last year. (Just this month, the case was withdrawn, presumably in response to HUD’s published position on the issue.)

 What is “Disparate Impact?”

Section 100.500(a) provides that a “discriminatory effect” occurs where a facially neutral practice actually or predictably results in a discriminatory effect on a group of persons protected by the Act (that is, has a disparate impact), or on the community as a whole on the basis of a protected characteristic (perpetuation of segregation). Any facially neutral action, e.g., laws, rules, decisions, standards, policies, practices, or procedures, including those that allow for discretion or the use of subjective criteria, may result in a discriminatory effect actionable under the Fair Housing Act and this rule. For examples of court decisions regarding policies or practices that may have a discriminatory effect, please see the preamble to the proposed rule at 76 FR 70924-25.

Simply stated, disparate impact occurs when a housing provider’s policies or actions, although neutral and non-discriminatory on their face, serve to disproportionately negatively impact a protected class of individuals, as defined under the Fair Housing Act.   (more…)

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Owner: “Why Can’t I Talk to My Own Tenant?”

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Owner/Tenant Conversations

A common frustration among property managers all over the country is the difficulty posed when owner/clients start communicating directly with their tenants. From the owner’s perspective, it’s difficult for them to understand why this would be a problem. After all, it’s their rental property! The tenants are their tenants, right?

 

“Just because I have retained a professional property manager, shouldn’t mean I can’t interact with my own tenants.”  This is what our owners often believe, and it’s one of the most damaging beliefs they can hold.

(more…)

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Best wishes for a wonderful year ahead!

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As this amazing year draws quickly to an end, I’m reminded of all the rich experiences, fascinating people, and fun times I enjoyed in 2012.

 

Thank you, Lisa Betts, my awesome booking agent. Thank you for taking a chance on me, and providing me with so many great opportunities to share best practices and experiences with fellow property managers all over the country, this past year.

 

Thank you, too, to all the wonderful property managers I had the great pleasure to meet  along the way. From Nevada to Virginia, New Jersey to Wyoming… (more…)

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Winter Newsletters – Who Reads This Stuff?

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It’s been our practice for quite some time to send our tenants a newsletter every fall and spring, helping them prepare for the coming season. It’s that time of year again… time for the Winter Newsletter.

 

Hoping to garner some fresh ideas for this annual publication, we searched online today and found all kinds of interesting stuff. From holiday recipes, to tips for saving water, to security recommendations, and human interest stories… It seems property managers are becoming more and more creative, in an effort to reach out to their tenants. I applaud the efforts I see being made, but I’m left to wonder if that approach really works. (more…)

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