Tenant passed away

[Debra R.]

My tenant (who was also my neighbor and friend) passed away very unexpectedly.  The emotional issues are hard enough, but are there any legal issues that I should be thinking about?  

One point I'm struggling with is the security deposit.  If I'm able to get a new tenant in on the first then I'll return the deposit to his parents.  But what if I go a month without a new tenant?  On the one hand his family is grieving and I don't want to add any difficulties.  One the other hand, absorbing a $2,000 loss will be difficult right now.  Please give me your insights both legal and moral.  

[Kyle J.]

@Debra R.  Sorry to hear about your tenant/neighbor/friend. 

In California, surprisingly enough, a tenant's death doesn't necessarily end a lease.  (The death does end a month-to-month tenancy though.)  So, technically you could use the security deposit for unpaid rent until you find a new tenant if that's the case and that's what you decide to do.

From the California Dept of Consumer Affairs website:

TENANT'S DEATH

Suppose that a tenant who has a tenancy for a specified term (for example, a one-year lease) dies. The tenancy continues until the end of the lease term, despite the tenant's death. Responsibility for the rest of the lease term passes to the tenant's executor or administrator.

Now suppose instead that the tenant had a month-to-month tenancy. In this case, the tenancy is terminated (ended) by notice of the tenant's death. The tenancy ends on the 30th day following the tenant's last payment of rent before the tenant's death. No 30-day or 60-day notice is required to terminate the tenancy.

Source: http://www.dca.ca.gov/publications/landlordbook/sec-deposit.shtml

Here's some more reading on the topic that might also be helpful:

Landlord Rights in the Event of a Tenant's Death

Legal Q&A: What happens to lease if tenant dies?

How to Handle an Untimely Tenant Death as a Landlord