A tenant’s death is something that landlords never want to experience. But as a landlord, you still have your rental property business to consider. So, you might be wondering, if a tenant dies what happens to the lease in Texas? If a tenant was a co-tenant with others on the lease, the lease continues as usual for the surviving tenant(s), and the estate’s liability transfers to the co-tenants. However, if the tenant was the sole occupant, their lease continues until the tenant’s estate formally terminates it. And that’s where things get complicated, so we’ll dive more into it below.
Key Takeaways
- Sole occupant tenants’ leases do not immediately end until you receive a formal written notice of their passing from their estate representative, and their property has been removed.
- Sole occupant tenants’ rent and other lease obligations continue to accrue unless the lease is formally terminated by the tenant’s estate representative.
- Sole occupant tenants’ personal belongings and security deposit must be returned to the tenant’s estate following legal procedures.
Does a Lease End Automatically When a Tenant Dies in Texas?
Texas Property Code 92.0162 provides that a sole occupant tenants’ estate takes over the lease, and it stays active unless an estate representative ends the lease.
As we can tell you in our experience with property rental management, the legal obligations the sole occupant has left behind (rent, utilities, and other fees) will shift to whoever is responsible for handling their affairs after their death. The lease termination date will be the later of the 30th day after notice is given or the date all property is removed.
FAQs
Now that we’ve answered the question, “if a tenant dies what happens to the lease,” let’s get into the conditions and provisions in place to make this process easier for all parties. Here are some of the most frequently asked questions landlords ask us about this process:
What Happens to Rent After a Tenant Dies?
You can continue to bill the rent until the sole occupant tenants’ lease ends, or until their estate representative formally ends the lease by giving you a written notice of the tenant’s death and meeting the conditions for surrender. In other cases, their rent accrues up until you regain legal possession of the property. Then, their estate is also responsible for covering other applicable fees as indicated in the lease.
Can a Landlord Enter the Property After the Tenant Dies in Texas?
No, they cannot enter a sole occupant tenants’ property until the lease ends unless there is an emergency, or you are coming in to remove and store away the sole occupant tenant’s belongings, or you get permission from the tenant’s next of kin, executor, or law enforcement. This is because the estate still has the rights over having undisturbed use of your property.
Who’s Responsible for the Tenant’s Belongings in Texas?
According to Property Code 92.014, the sole occupant tenant’s estate is responsible for a tenant’s belongings in Texas.
So, unless your lease says otherwise, you should do the following: store the sole occupant tenant’s items. You must let the estate possess and access the property and its belongings. If the designated person(s) fails to retrieve the tenant’s belongings from your property, you can request to dispose of them by certified mail, return receipt requested. Next, if the person didn’t remove the property by the 30th day after the postmark date of the notice and you haven’t been contacted before discarding the property, you can consider the property abandoned. Then, you can remove it.
How Can You Legally Terminate the Lease After a Tenant Dies in Texas?
The lease continues for sole occupant tenants until the estate or designated executioner notifies you the tenant has passed away and removes all property or until the lease naturally ends. The lease is formally terminated on the later of the 30th day after the estate representative’s notice or the date the property is entirely removed.
Can You Keep the Security Deposit?
Texas laws state that you need to return the deposit to the sole occupant tenant’s estate within 30 days of the tenant surrendering the premises and receiving a written forwarding address for the refund. However, you are allowed to deduct fees for unpaid rent and the cost of property repair beyond normal wear and tear, granted you provide an itemized list of the deduction. Your deductions may also include the reasonable costs of storing and removing the property of the deceased tenant.
What If the Estate Can’t or Won’t Pay Rent in Texas?
If the late sole occupant tenant’s estate refuses or fails to pay, you have the right to file a creditor’s claim.
On the other hand, if the sole occupant tenant’s estate has no financial resources to pay, you are allowed to deduct any debt (unpaid rent, late fees, payment for damages, etc.) from the security deposit. However, you still need to submit and provide an itemized list of deductions and return any remaining balance to avoid penalties.
A Disclaimer
We’re only providing general information in this article for educational purposes only. While we aim for accuracy and reliability, the information shared is not meant to be relied on as legal, tax, financial, or specific regulatory advice. We strongly recommend that you always consult with a licensed attorney, CPA, or other qualified professional in your specific jurisdiction for advice tailored to your unique circumstances, as reading this blog does not establish a client or advisory relationship with BMG.
How Bay Property Management Can Help
As a landlord, it’s never easy to navigate a tenant’s passing. Not only is it an emotional and sensitive situation, but the process that follows can be a challenge to navigate and impose. In such cases, compliance with established laws and regulations is key to handling and upholding your rights as a landlord, from understanding how lease obligations are coordinated to handling security deposits, belongings, and debts.
As the property management San Antonio landlords trust, we can provide you with critical guidance and support to help handle a tenant’s passing from an administrative point of view. From navigating lease terms, being the middleman between you and the estate, and making sure you’re following the right procedures, we’ll be right with you every step of the way in this tough situation. Contact us today to get started.