I have a tenant that has been diagnosed terminally ill,he has asked about his deposit return as when he dies he want be able to claim it and so would loose it .
He has no money and this would make a big difference to him if it was refunded be for he passed and before he moved out ? Where does this leave me please ,he has been a good tenant never missed rent
From checking online ASTs don’t automatically end when a tenant dies instead it will be up to you as landlord and executor of his estate to end the tenancy in an agreed way after which the deposit is returned in the normal way (with any deductions as needed) but to his estate.
https://help.openrent.co.uk/hc/en-gb/articles/9396352274193-What-happens-if-my-tenant-dies
So the executor of their will claims it for them
He has no family and really needs it now
I am not wanting to sound callous but you are running a business .
Do you have evidence to support what he is alleging ?
What about the rent if he has no money ?
What about the damages after he dies who will pay for cleaning , damages , disposal of chattel etc ?
you may need to go to court to get your property back . Have you factored that into your costs ?
does he not have a will at all?
How much of the deposit would he lose if you returned it now?
Hi @Nick2,
Sorry to hear about your tenant’s circumstances. @David240’s comment is correct and we’d advise reading the article he’s linked to see how the deposit is handled in the event of a tenant death.
Sorry to hear about your tenants circumstances and good you care
Ps if you are confident you wouldn’t need to make deductions from the deposit when returning it you could agree a new tenancy agreement with him without a deposit or with a smaller deposit or it’s possible to amend the deposit amount for an AST. But your deposit isn’t his savings account it’s there to protect you and him/his estate against any end of tenancy issues. Some letting agents offer no deposit alternatives (think OR does) which are an insurance based alternative
You could also consider using some sort of short term letting solution and charge weekly not monthly if that suits you both, so his estate doesn’t pay lots of rent after he’s died
But equally you should discuss with him practicalities - does he have a will and executor, what arrangements is he making to empty your property after he’s gone etc and to tell you when it happens etc
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