Tenant passed away prior to closing on a purchase, Florida

Tenant passed away prior to closing on a purchase, Florida

Rental Property Investor · Boca Raton, FL · Member since 2019 · 20 posts · 5 votes

I have an unusual situation and am hoping for some advice from someone who has some experience or knowledge of how to handle the situation.  I am scheduled to close on a duplex on Friday, May 14th.  Both tenants decided to stay with increased rent.  One executed a lease for a full year and other for 6 months.  The 6 month lease was meant to give her plenty of time to find a new place to purchase and move into.  She was older and I wanted to make it work for her so that she would not be rushed to find a new place and be displaced after living at this property for over 20 years.

Last night, I got a call from my realtor that she unfortunately passed away after having a stroke and being transported to the hospital.  I am sad that I did not have the opportunity to get to know her better and am heartbroken for the family that is left to now handle the process that comes along with a loss like this.

My question relates to how I can best handle the situation.  I will of course handle it with compassion and understanding as it relates to the family.  As far as how to handle this from a legal standpoint, it looks like it differs depending on their leases.  If they were month to month, essentially you give the family/next of kin/estate 30 days to clear her personal belongings and treat it similar to an eviction.  If they have a long term lease, the lease does not terminate and you allow them 60 days to clear out their possessions while the estate owes you for the rent.  I want to note that ethically, I do not feel comfortable collecting rent from her next of kin so the component of obligation of the estate is largely irrelevant.

You are also apparently supposed to secure all of her belongings and note anything that is removed by family members that you allow to visit the property.  However, the current landlord has already allowed family members to enter the unit so this may be somewhat irrelevant at this point.

For reference, this is in Fort Lauderdale, Florida.  She was on a month to month lease with the previous landlord who passed away.  It was transferred to an estate for his next of kin prior to the landlord passing.  She had already executed a 6 month lease with me contingent on the fact that I take ownership of the property.  She had also given me a check for the first months rent.

I'm not asking for advise for how to get revenues on the property for the estate because I do not feel right doing so.  I have plenty of reserves to weather the storm and had planned on fully renovating the unit upon the termination of each lease.  I am asking for advice on how to handle the process of clearing out her belongings in a way that does not expose me to any legal risk and also allows me to begin renovating and improving the unit as soon as possible to decrease the vacancy loss as much as possible while still being ethical and compassionate to her family.

On a side note, the other tenant is a building inspector that deals with code violations for the city...sooooooo, I'm going to be pulling permits for everything related to the renovation and hope to create a positive relationship with him while he lives in the unit.

Thank you in advance for your advice.  I have learned an incredible amount of extremely impactful information from the podcast, books and forums associated with the Bigger Pockets platform.  It has been life changing in the way I have restructured my goals and long term planning financially.


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Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
5y

I’d simply offer condolences, no time pressure, 30 days or so to empty it out....they’ll probably do it quicker. 

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  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    5y

    I’d simply offer condolences, no time pressure, 30 days or so to empty it out....they’ll probably do it quicker. 

  • Investor · Indianapolis, IN · Member since 2020 · 234 posts · 194 votes
    5y

    @Hugo Jimenez

    Hi Hugo,

    This is an unfortunate situation and I must say after reading what you've written about it, I think you're handling it with appropriate resect and integrity. 

    You have noted the importance of taking a ledger account in whom takes what from the unit- it may not be as accurate at this point, but maybe not irrelevant to continue on as you can. 

    Some landlords find it appropriate or necessary to accompany anyone enter the unit for collection of possessions, but this can possibly be an uncomfortable thing to do, given the circumstances. 

    While you had a verbal notification from your realtor, which in this case seems maybe enough to proceed with allowing heirs  to collect belongings- I'm basing that on the tenants age and this not being a more objectively muddy situation as can happen in certain circumstances.  

    It depends on the relationship that you have or would have with her heirs or executor of her estate in how to proceed. In some cases landlords will change the locks and only give a key to the named executor. This prevents every cousin, grandchild, etc. from coming in at all hours and opening the landlord up to higher liability. 

    I would say that you're clear on the timeline of 60 days per the lease as you noted, but would maybe want to consider limiting access to the executor alone, consider going with them maybe and just kindly explain to them that you would prefer only they come in to claim possessions. 

    Deciding to change the locks and only give the executor the key is up to you and how comfortable you feel with them, unless of course there's a legal loophole in FL that requires this to be done that I'm not aware of.

    When it's all said and done, you can have them sign off on a Release to Right of Possession and I'll include a link to one example here too. 

    Hope that helps some, and again seem like you're thinking ahead to taking care of with the best of intentions and respect

    https://www.printablecontracts...

  • Rental Property Investor · Boca Raton, FL · Member since 2019 · 20 posts · 5 votes
    5y

    @Wayne Brooks

    Thank you, I definitely plan on doing that.  I was more referring to the legal letter of the law.  From what I found there are a couple potential pitfalls to avoid and they are very specific.

  • Rental Property Investor · Boca Raton, FL · Member since 2019 · 20 posts · 5 votes
    5y

    @Anna Laud

    Thank you very much, that's great advice about the Release to Right of Possession and I greatly appreciate you even going a step further and providing me a link.

    Do you happen to know if there is any scenario where the estate or next of kin can sign off on the Release prior to the 60 day window?  

    I have already had a number of conversations with the deceased tenant's sister to help her execute the 6 month lease.  She is a great lady and so far has been someone that has the ability to understand the situation from multiple perspectives and work towards finding mutually beneficial, fair solutions.  My thought is that I could possibly discuss the situation that legally, the estate has an obligation to pay the lease according to the terms but that this doesn't sit right with me and to ask her if she could help me by signing the Release whenever they can complete going through her personal property (with no constraint imposed by me) rather than dragging the process out the full 60 days.

  • Investor · Indianapolis, IN · Member since 2020 · 234 posts · 194 votes
    5y

    @Hugo Jimenez

    Hugo, you bet and always happy to try and help. 

    It seems you'll need to give the 60 days notice without it being month to month as you stated, but that she may be willing to sign it sooner than this. 

    You're right to think that there is a kind and respectful way to deliver dialogue and have leverage mentioned in an honest way that isn't disrespectful to the situation or 'cut throat' -which again, truly sounds like you're trying to avoid. 

    I think it sounds like, based on your discussion with her thus far, that you've established a relationship that might allow you to have just this conversation. Pointing out that you could exercise the option to execute the estate's coverage of the lease, however you really don't want to do that and if you can mutually (always in writing, even on friendly terms) agree to another, lesser timeframe it's probably beneficial for both sides. In a way it's kind of like 'cash for keys' and while you're not offering cash per say, you're offering the estate to keep the cash to cover the lease if that makes sense. 

    It doesn't sound like you're trying t apply pressure at all and that a reasonable date - maybe 30 days as she did pay first month (just a thought, obviously not legal advice) rent would be enough for both parties. 

    I hope that helps a little in clearing up timeline- but I would say that if she really feels it will take 60 days, it might be the full 60 days then you're bound to without mutually agreed upon resolve. 

  • Licensed Realtor & Investor · Miami, FL · Member since 2015 · 164 posts · 124 votes
    5y

    @Hugo Jimenez this is definitely not something that comes up very regularly; however, it is specifically addressed by Florida State Statute 83.59(3d) as indicated below:


    F.S.S - 83.59 Right of action for possession- 

    (3) The landlord shall not recover possession of a dwelling unit except:

    (d) When the last remaining tenant of a dwelling unit is deceased, personal property remains on the premises, rent is unpaid, at least 60 days have elapsed following the date of death, and the landlord has not been notified in writing of the existence of a probate estate or of the name and address of a personal representative. This paragraph does not apply to a dwelling unit used in connection with a federally administered or regulated housing program, including programs under s. 202, s. 221(d)(3) and (4), s. 236, or s. 8 of the National Housing Act, as amended.

    Keep in mind that this law is completely civil in nature. Once you close on the property, I think that it would be fine to kindly ask the executor of the estate or the deceased's personal representative to make arrangements to have the unit cleaned out as soon as possible. They may be willing to remove her belongings prior to that. Once the unit is empty, as @Anna Laud mentioned, it would be a good idea to have the executor or personal rep sign a Release to Right of Possession. I would just try to ensure that no other relative decides to move into the unit while they are supposed to be cleaning it out. If this were to happen and then they decided that they were not going to leave, you could be stuck with having to go through an actual eviction worst case scenario. From what you have described though, it doesn't sound like this is likely... But stranger things have happened.  

    You also might want to check out Florida Statute 83.67 for Prohibited Practices - Prohibited Practices

    Best of luck with your newest investment property and the new learning experience! 

  • Nathan GesnerBusiness Member
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    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    You've got the law and the family is apparently already acting. It's not your home yet, so I would work through the Seller to stay on top of what's transpired so far and what the family is planning to do. Try to get contact information for the family member that's in charge. Once you become the owner, contact them, express your condolences, and get an update on the plan.

    I had six tenants die in a five-month period (Nov 2020 - Mar 2021). Like you, I didn't ask for rent but accepted it if the family offered it (only happened once). The family typically offers to "clean" the rental, but none of them actually did any cleaning. They removed the majority of items and then left me to finish up. Most of them were finished in 20-30 days, I took a few days to finish cleaning up, and then I was able to market and find another renter. One took 45 days. I used the deposit to pay for the cleaning and anything left was applied towards unpaid rent or utilities. It was never enough but typically cut the losses in half.

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  • Inspector · Fort Lauderdale · Member since 2019 · 223 posts · 51 votes
    5y

    @Hugo Jimenez hi, sad but I am sure the family's members will understNd your situation, you have good information here and ideas. If you need more info you cal call my probate attorney (954) 698 0039, Mark Gold near you.

  • Rental Property Investor · Boca Raton, FL · Member since 2019 · 20 posts · 5 votes
    5y

    I want to thank everyone for all of the great information and to provide a quick update. The sister of the tenant that passed away has been the person handling the transition and after a number of discussions where I offered my sincere condolences and discussed the situation, she has been very understanding of the situation from my standpoint as well.  They are taking 30 days to clear out the property and find a home for her kitty from what she told me although they have not started yet.  In the meantime, she has assisted me getting a spare key because the previous owner was out of state and she is letting me come in there with my architect and GC to get plans drawn so that I can submit permit applications prior to moving out all of her possessions.  

    I can't thank everyone enough for their input on this.  Bigger Pockets has the best group of people contributing to our community and I look forward to further discussions in the future.

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