While it's not a topic we often anticipate or experience as landlords or property managers, the loss of a tenant is an undeniable aspect of life—one we may unexpectedly confront.

Unfortunately and sadly, the property managers at Living Here Cush Partners were recently faced with this situation.

"A wonderful tenant passed away unexpectedly after an accident at the home. We were notified by the tenant's daughter-in-law and we were deeply saddened by the news.

We understood that as property managers, we are a tiny part of the tenant's life, however, we knew that this period would be significantly difficult and possibly traumatic for the family so we did our absolute best to make the process as easy as possible for all parties involved. 

The accident was isolated to one area of the home and by the time we were notified, police had attended and all parties were informed that a forensic clean was required."

"We knew that there was a process to follow with respect to correct notices and time periods, cleaning, vacating items and finalising funds owed/paid along with refunding the bond. However, arranging or even discussing these items with a family who have lost a loved one, wasn't going to be easy.

"So it was important that if we needed to address topics that seemed insensitive and poorly timed, we made sure to humanise the process as best as we could; offering our condolences, wishing that they were okay, relating to their experience with our own experience - even if we couldn't begin to image the pain they felt. 

We reminded them that while we have a duty to the landlord to ensure the process is followed, we are still just people, willing to help and get them through this as smoothly as possible so they can grieve.

The legislation gives us guidelines, but doesn't teach us empathy, compassion or how to communicate during those times. It just comes down to being honest, having some perspective and treating people the way you would want to be treated."

What is the process PMs need to follow when there has been a death of a tenant?

In a best-case scenario, we are simply notified by a family/friend of the tenant and aren't the ones to find that a person has passed while completing an inspection.

Legislation allows for the lease to be terminated with 14 days notice after the tenant's personal representative gives notice of the tenant's death, or the lessor gives the tenant's personal representative of the agreement end because of the tenant's death. Otherwise one month after the tenant's death, should no notice be given.

During this time, the family will have 14 days (or more if they request it), to move items, complete a bond clean and return the home in the same condition as they moved in. These are all very normal, end-of-lease processes. 

However, in the unfortunate event of an accident or incident in the home involving a biohazard, a forensic clean must be conducted before anyone can enter the home, including family, next of kin, the landlord, or the agent.

While this cleaning process may delay the vacating process, clear communication ensures that everyone involved understands the situation. Once the cleaning is complete, the remaining vacate procedures typically proceed in a standard manner.

Do you need to let future prospective tenants know? 

There is no legislation in Queensland that states we must inform future tenants of a death, however for sales, an agent must disclose a material fact that ‘may have a bearing on a reasonable person’s decision to proceed with a property transaction’.

While there's no legal requirement, we firmly believe in transparency as a best practice and therefore feel it is best to disclose this information regardless, as it may influence a tenant not to lease the property. 

What do landlords themselves need to be aware of?

As a landlord, it is important to keep in mind that whilst tenants enter into lease agreements for specific periods, life's uncertainties can lead to unforeseen circumstances and life events can prompt unexpected changes. Thus, maintaining comprehensive insurance coverage is paramount.

It's also important to note that if a tenant has rent paid in advance, and the tenancy is terminated unexpectedly - the landlord may need to pay a lump sum of rent back to the tenant immediately. This could be difficult if the funds are spent, or tied up in a mortgage/term deposit etc. 

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