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Updated about 7 years ago on . Most recent reply

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6
Posts
2
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Olga B.
  • Investor
  • Boise, ID
2
Votes |
6
Posts

Tenant death - security deposit

Olga B.
  • Investor
  • Boise, ID
Posted

Hi everyone! 

While we were in escrow on our first rental property (duplex), one of our tenants (lived by himself) passed away unexpectedly. It was very emotional to say the least and my husband and I were shocked by the news and also inexperienced on how to handle the situation. Shortly after, we closed and the family took care of cleaning out the unit by the end of that month (rent was already paid for that month) and we were able to re-rent it but it took us another three weeks to find a new tenant. 

Long story, short: My question is regarding the security deposit. The late tenant's lease was supposed to be up at the end of March 2018. Also, we needed to repair some things in the house (cracked window, etc.) but otherwise it was left in clean condition by the family. Can I apply the security deposit towards the three weeks it took us to re-rent the unit and also towards the repairs for the unit? 

Also, would we legally need to notify the family about using the security deposit for repairs/rent and providing them with an itemized list?

Thank you in advance!!

-Olga the Newbie

Most Popular Reply

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22,059
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14,128
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Jon Holdman
  • Rental Property Investor
  • Mercer Island, WA
14,128
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22,059
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Jon Holdman
  • Rental Property Investor
  • Mercer Island, WA
ModeratorReplied

When someone dies their assets become their "estate".  Someone administers the estate.  Either a executor if there is a will or a personal representative if there is not.  You should go through the same process as if they were still alive and return the explanation letter and remaining deposit, if any, to the executor or PR.  There are often bills left over when someone dies that the estate must deal with.  

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