Managing a rental property comes with its share of challenges. One of the most difficult situations a landlord or property manager may face is the death of a tenant. This scenario can be both emotionally and logistically complex. Understanding the legal obligations and having a clear plan of action can help navigate this sensitive situation with care and efficiency. Here's how to proceed.

Immediate steps

• Notify the authorities: If you discover that a tenant has passed away in their rental unit, the first step is to call 911 right away. Don’t move anything and make sure that no one else comes into the unit. Once the emergency services arrive, they will handle the situation from there. 
• Secure the property: Once the authorities have left, ensure that the property is secure. This might involve changing the locks temporarily to prevent unauthorized access. It's important to protect the tenant’s belongings and the premises itself until the next steps are clear.

Legal considerations

• Notify the next of kin or estate executor: The police will typically contact the next of kin, but as a landlord or property manager, you should also reach out to them. If there is no next of kin, the Office of the Public Guardian and Trustee may get involved.
• Lease agreement: Review the lease agreement to understand any clauses that pertain to the death of a tenant. Depending on the type of lease, it does not automatically terminate upon a tenant’s death. The responsibility for the lease may pass to the tenant's estate.
• Periodic vs fixed-term tenancy: A periodic lease will normally end at the conclusion of the following month while a fixed-term lease will continue until the original end date unless the estate representative and landlord agree to end it sooner. In both instances, there must be no other tenants living in the apartment.
• Wait for instructions from the executor: The executor of the tenant’s estate will manage the deceased’s affairs, including dealing with the lease and the tenant’s belongings. It’s crucial to wait for their instructions before taking any further action.

Handling the tenant’s belongings

• Inventory and documentation: Document the tenant’s belongings meticulously. Take photographs and make a detailed inventory. This documentation will be useful for the executor of the estate and for your records.
• Storage of belongings: Alberta law requires landlords to keep the tenant's belongings for a reasonable amount of time. Work with the executor to determine the best course of action for these items. In some cases, you may need to store the belongings until they can be claimed by the next of kin or estate representatives.

Financial considerations

• Outstanding rent and deposits: The rent is typically payable until the end of the lease or until the unit is re-rented. Discuss any outstanding rent with the executor. Security deposits may be used to cover unpaid rent or damages and any remaining amount should be returned to the estate.
• Cleaning and repairs: You are responsible for ensuring the property is clean and habitable for the next tenant. If the tenant’s death caused damage to the property, document this and discuss the costs with the executor as these may be covered by the estate.

Re-renting the property

• Termination of lease: If it is practical, the executor may wish to terminate the lease early. This can be negotiated and any agreement should be documented in writing.
• Rights of surviving partners: The Wills and Succession Act permits surviving partners to remain in the rental unit for up to 90 days. If they are not named in the lease, the landlord may give them a notice to vacate after this.
• Rights of other tenants: Any other tenants whose names are included in the lease have the right to stay on in the unit until the date stipulated in the agreement. 
• Advertising for new tenants: Once the property is ready and any legal and logistical issues are resolved, you can start advertising for new tenants. Ensure the property is thoroughly cleaned and any necessary repairs are completed before showing it to potential renters.

Emotional and ethical considerations

• Compassion and communication: Throughout this process, maintain clear and compassionate communication with the deceased tenant’s family and executor. This is a difficult time for them and your sensitivity can help ease their burden.
• Professional assistance: Consider seeking advice from legal professionals or property management experts who have experience dealing with such situations. Their guidance can support you in complying with all legal requirements and help you handle the situation efficiently.

Preventative measures

• Tenant information: When entering into lease agreements, think about including a section that asks for emergency contact information. This can streamline communication when necessary.
• Insurance: Be sure that you have comprehensive insurance coverage that covers events like the death of a tenant. This can protect you from potential financial losses.

In closing

Managing the death of a client requires knowledge, preparedness, patience and sensitivity. If you find yourself out of your depth at all, reach out for legal assistance.