"If There's a Death In One Of Your Units... YES or NO"??

[Rick Snow]

If there's a death in one of your multi family units, can you rent it out again?

Details: If there's a death in one of my SFR's I dislose it in the TDS - ALWAYS - California Law. Can any Realtor/CCIM familiar with C.A.R / N.A. R. law confirm if disclosing a death is required for a multifamily that is 16 units or more? 

Here are the variables. Right now the unit is locked under "Notice by the City". I am still waiting on the police report. I don't know if it was a violent crime or natural causes.  

My plan is either: 

A) Resolve the issue with the City. Lock the unit and never rent it again. 

B) Resolve the issue with the City. Completely remodel the unit and rent it out again sans disclosure or 

C) Resolve the issue with the City. Remodel the unit. Rent it out again and disclose the death 

or 

D) Resolve the issue with the City. Remodel the unit. Disclose the death and offer concessions. 

I'm looking for a simple yes, or no (if I can still rent this thing out) but please feel free to explain your answer.  

Thanks everyone! 

Rick 

[P.J. Bremner]

@Rick Snow

I unfortunately had to deal with this issue in January of this year (I'm currently in southern California).  The coroner came by and picked up the body, but they didn't have any further involvement so I assume there was some kind of crime attached to your incident.  I think the only time they would investigate is if they suspect foul play or a crime.  If it's suicide, natural causes, drug OD, etc. then they remove the body and move on.  My tenant was a younger college kid who OD'ed on heroin, no foul play suspected.  I cleaned the place, replaced the mattress (I furnish the units) and then continued to rent the place out literally a week or so after he had passed.  I made sure the family had plenty of time to gather his personal things and did whatever I could to help them (I can't imagine losing a child, so I was as respectful as I could be).

I am not a lawyer so it's best that you seek council first, but my understanding of the law is that you should disclose a death within the last 3 years if it's 1-4 units. Commercial you do not have to. For SFR and 1-4, after the 3 years, it's irrelevant and there is 0 liability for you as a landlord. There is some gray area here within the first 3 years of the death though... This is straight from CAR:

"Any death which has occurred within a 3-year period should be disclosed if deemed to be "material." Affliction with AIDS or death from AIDS need not be voluntarily disclosed. Neither a landlord nor an agent may make an intentional misrepresentation in response to a direct question concerning deaths on the property. The landlord or agent should simply refuse to answer a question (about HIV or AIDS) indicating that any such information, if known, is confidential and private or that such an inquiry may constitute an effort to discriminate under federal law."

If you deem the death should be "material" to your new tenant, then you should absolutely disclose.  However, from my understanding of the law, it's similar to "don't ask don't tell".  If the tenant asks you about a death on the property, either you refuse to answer the question OR you tell them the truth.  If you lie about it, you can be sued.  If you don't tell them and they find out later, you can explain that you fixed everything up sanitarily and didn't think it was "material" to be disclosed.

Here is the link so you can read for yourself and use it for future reference:

http://www.car.org/legal/disclosure-charts/pdf-cha...