Tenant Died & Partner Wants Deposit- Lease Assumed by Son...

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Tenant Died & Partner Wants Deposit- Lease Assumed by Son...

Brandon SturgillBusiness Member
Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes

I know this isn't legal advice, but I wondered if anyone has been in this predicament....one of our tenants from 2011 recently died. The original lease was signed by her and her partner in 2011. This couple was basically an on and off boyfriend/girlfriend deal. Even though the partner was on lease, he was reported to be a "deadbeat" and did not contribute any rent....but he did do the upkeep and yard work on the place. The dead tenants son was in the apartment as well, but not on the original lease. When the tenant died, her son stepped up and we put a new lease for him in place. The dead tenants partner is now requesting the original security deposit back from the 2011 lease...

What do you think? 

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Dutch Langley
Flipper/Rehabber · Matthews, NC · Member since 2019 · 198 posts · 239 votes
7y

I think regardless of deadbeat or not, if the lease states that the security deposit should be returned upon conclusion of the lease unless certain conditions existed that it would need to be returned.

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  • Dutch Langley
    Flipper/Rehabber · Matthews, NC · Member since 2019 · 198 posts · 239 votes
    7y

    I think regardless of deadbeat or not, if the lease states that the security deposit should be returned upon conclusion of the lease unless certain conditions existed that it would need to be returned.

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  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    7y

    When you signed a new lease with the son you should have returned the original tenants deposit, less repair costs, and collected a new deposit from the son.

    What I would do is tell the new tenant they owe you a deposit. Tell him to pay the old tenant their deposit. This will satisfy the old tenant and allow you to retain a deposit for the new tenant. Hopefully they will agree. For leverage I would tell the new tenant that if you do not have a deposit from them you will be forced to non renew their lease or collect the deposit before you agree to renew. 

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    7y

    Yes, the deadbeat boyfriend had a legal, written contract with you. When that agreement ended, the security deposit should have been refunded to him. The son does not automatically inherit it just because he was residing in the home, particularly when there's no legal document.

    I would contact the son, explain your mistake, and tell him to pay the security deposit or move out. Then refund the deposit to the deadbeat boyfriend.

    Up your standards. Once you discovered the son living there without permission, you should have booted him. These are the kind of Tenants that will make you think you are squeaking by and avoiding disaster and then BOOM! They'll leave you hanging with thousands and thousands in losses.

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  • Al Williamson
    Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
    7y

    Brandon,

    Yes he should get his security deposit back and you should collect a new one.

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