Landlords and tenants take note, a rental agreement remains in force after death
Category Rentals
Unless the property rental agreement contains a clause which states that the lease is cancelled upon the death of either the tenant or landlord, it remains in force after the death of either.
Natheema Khondker, an intern rental agent with Seeff Southern Suburbs says in the case of the death of a tenant, and no clause to the contrary, the lease agreement will remain binding. It will fall onto the legal guardian or estate who will need to provide the landlord with a 20-business days’ cancellation notice with reasonable penalty fees.
This, she says, is to provide the landlord with sufficient time to find an alternative tenant. It also means that rental payments remain due monthly until the notice in writing is agreed upon by both parties. A reasonable penalty fee is usually equivalent to one month’s rent depending on the property and lease.
The holding deposit can be utilised towards the penalty fees. The property must, however, be handed back to the owner in the same condition as it was received. Should maintenance be required, the cost of aspects such as cleaning the house and garden and servicing the swimming pool will need to be recovered from the deposit. Any shortfall will be for the account of the legal guardian or estate.
In the event of the death of the property owner or landlord, and if there is no clause which provides for cancellation upon death, the tenant will have the right to remain in the property. The property will form part of the estate and will be disposed of in terms of the will (or otherwise as the case may be).
The lease will continue until the expiry date which means that the lease will be inherited with the property and the heirs then become the legal successors to the deceased landlord. Should the heirs decide to sell the property, the lease will remain in force until the expiry date. Importantly, the tenant must continue to meet their obligations in terms of the lease.
Author: Gina Meintjes
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