Do renters care if someone died where they live?

Question

Hey BP! I am looking at a BRRRR opportunity for a C class house in a C class neighborhood. It should meet the 70% Rule and the 1% Rule. However I learned that the previous owner committed suicide in the house. Does anyone have opinions on how this will affect the sellability and rentability of this house? Also, I understand that it must be disclosed when selling. Is it safe to assume that it also must be disclosed when renting? Thanks in advance for your thoughts!

John Teachout · Answer

How did you learn that the previous owner committed suicide in the house? Neighbors? Seller told you? Remember it from the news?

I personally wouldn't let a death in a home affect my purchase decision but I can see how it would be looked at differently by some.

There's a small commercial building (converted house) in my town where a young woman was murdered and that thing has been slowly falling apart as it's been on the market for years and doesn't sell. It was a highly publicized event.

Dennis Cosgrave · Answer

From my experience, prospective tenants only seem concerned if someone was murdered in the home. Any other kind of death didn't seem to bother them.

Theresa Harris · Answer

Where I am we have similar rules as Joe S.  If it was a violent death, it must be disclosed.

Will Fraser · Answer

Hi @Christopher Spear, my "correction needed" alert went off and I had to chime in:

It is not true that you must disclose a death in the home.  There is nuance here and it is highly dependent on your state's individual rules.  There may be a limit to the time since death, the cause of death, or even WHEN disclosure is required.

For example, in my state it is not required UNLESS a buyer asks.  It's VERY unclear if it would be required to disclosure to a tenant at all, unless they specifically asked.

So, consult a savvy RE attorney, investor, or PM in your state to find out if there is a disclosure requirement for this scenario.

Lynnette E. · Answer

You will need to check the laws based on the location of the property.

John Teachout · Answer

The property is commercially zoned on a busy highway and isn't something that fits our SFR model.

Tony Mai · Answer

@Christopher Spear most people will care but some won’t.  You already know you need to disclose and it just depends on the asking rent.  If you get no apps then you are priced too high and will need to lower the rent until you get the right tenet.  Good luck!

Joe S. · Answer

On that house that is slowly falling apart have you considered seeing if the seller would finance it to you at super terms? Then you could rent it out to someone for below market while the stigma slowly left.

Alyssa Dyer · Answer

@Christopher Spear

Will is correct!

From what I’ve seen tenants care about murders and sometimes suicide. But not other deaths. Unless it was widely publicized most tenants don’t know.

Steve Morris · Answer

Do renters care if someone died where they live?

Depends - Was it a roommate?

Seriously, you should check, but sometimes you have to disclose that on a sale (if asked - Which has to be a weird conversation), but don't know about rentals.  Sometimes, you CANNOT disclose (eg they died of AIDS).

Do renters care if someone died where they live?

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