A
lot of people have storage units. Sometimes those units are only used for a few
months, such as during a home remodel or during the process of a move. In other
cases, a storage unit is used for several years. Whether long-term or
short-term, unexpected issues can still arise. In this article, we will be dealing with one
issue in particular. What happens to the items in a storage unit when a tenant dies? What might happen to
their unit if they die isn't usually something a person wants to think about when they
rent a storage unit, but it's an important consideration. Fortunately, there
are several ways to reduce the chances of a probate issue or other problem with
the unit. Here's what to consider.
TELL SOMEONE ELSE ABOUT YOUR STORAGE UNIT
Sometimes
people do not tell anyone about their storage unit. While it might not seem important
to tell anyone or you’re just trying to keep quiet about storing your stuff,
not telling anyone can lead to unforeseen problems later. If no knows that you have a
storage unit, no one will think to address that if you pass away. The things you have in there
may be important to you, and that means they could be important to your family
and other loved ones, as well. Whether you tell your spouse, an adult child, a
parent, or a trusted friend about your storage unit, let someone know. They
should know which facility you have used (the name of the facility &
location), and the number of the unit you're renting. They can't access it without
that information.
Typically,
if no one has been told about the storage unit, the death of the tenant is not
found out by the manager or operator until the rent is late or remains unpaid
past the time allowed. This will typically will occur when late or lien notices are sent to the tenant’s last known address.
When this occurs, it's usually at this point relatives and friends may come
forward seeking to access the unit, hoping to retrieve the deceased’s property.
Seems like a simple solution but once the manager or operator has been notified
that the tenant has died, they are now going to be bound by law to follow the
procedures of the state. Continue reading to learn more about that in this article.
ADD ANOTHER
PERSON TO YOUR ACCOUNT OR LEASE
Another
good way to make sure your storage unit can be handled correctly after you pass
away is to add another person to the account or lease. Not all facilities will
allow you to do that, so you might want to check around for one that will. Then
you can have peace of mind, because you'll know your storage unit will be taken
care of in the event of your passing. Of course, you really need to trust the
other person on the lease. They will have access to the unit as long as they're
on the lease, not just if you pass away. If you don't trust them not to take
something out of the unit or use it for something you didn't agree to, don't
add them to your lease.
SHARE
YOUR ACCESS CODE AND A SPARE KEY WITH SOMEONE YOU TRUST
As long as
the tenants or deceased individual’s account is up to date and if a family
member has the access code and keys to the unit (meaning he needs no action
from the manager to enter the space), he can access the unit and, if warranted,
remove the property from the rented space. This type of access is analogous to
that for any rental property; a family member or friend who previously had
access rights doesn’t immediately lose those rights when the tenant dies.
However,
it’s important to clarify that this permitted access is only possible when
the self-storage manager isn’t involved in providing gate-code access or
cutting the lock. If the facility operator is interested in addressing this
possible situation right when the tenant moves in, he can add an addendum to
the rental agreement that specifically lists the party who has access rights
upon death of the tenant.
If
the family member does not have
authorized access, the facility manager can’t allow that person into the unit.
To gain access, the family member must provide the manager with copies of the
death certificate and a court order stating that the family member been
appointed as the administrator or executor of the estate. (This process can be
quick or take up to 60 days.) Once he/she provides these documents, the family
member can access the unit and decide if he/she wants to continue renting in the
name of the tenant’s estate or terminate the rental agreement and remove the
items. In either case, he/she must continue to pay rent on the unit to avoid
foreclosure.
RELATIVES
AND/OR FRIENDS COULD BE LOCKED OUT AFTER YOUR DEATH
For many storage unit companies, being notified of
a facility tenant's death means locking that unit so others can't access it.
That's different if there's another person on the lease, but if you only gave
someone else your access code but they'll likely be locked out by the manager. Storage
companies do that to make sure there aren't problems with the will, probate
issues, or other concerns. In short, they want to stop someone from showing up
and taking everything out of your storage unit once you're deceased. There may
be specific things in there you've willed to someone, for example, that
shouldn't go to anyone else.
SETTING UP LEGAL DOCUMENTATION
One of the ways you can get around the lock-out
issue is by having legal documentation that allows someone to access your
storage unit after you die. That's usually a family member, but it can be a
friend or an executor of your estate, as well. Proper documentation can vary by
state, so it's important to find out what you need and make sure you follow any
instructions and legal requirements. That way you won't be worried about what
will happen to your things, and you'll know someone you trust will be able to
access them at a later date.
If a self-storage operator learns a tenant has passed away but isn’t
notified by a family member, he/she should try to reach the alternate or emergency
contacts listed on the rental agreement. While it is not necessarily the
manager’s responsibility, he/she
may also contact the local probate court to see if the tenant’s estate has been
probated (and an executor named). If there’s an executor, the manager can contact that person
to determine what to do with the unit. Ultimately, if he’s/she's unsuccessful in
making contact with those listed on the rental agreement, or any relatives or
friends who might be willing to resolve the tenant’s default, he/she may then send
a certified letter to the tenant’s last known address and proceed with the
foreclosure process. Depending on the state, there may be a waiting period to
allow the estate to be probated before the sale can occur.
NOTICE OF COMPETING CLAIMS TO THE STORED PROPERTY
There are
instances when the facility operator learns a tenant has died and receives
calls or visits from multiple family members, each making a claim to the unit
contents. In this case, it’s important that he overlock the unit and instruct
the family to go to the probate court and submit their claims there,
understanding the court will issue a determination as to a rightful heir and
proper party to take possession of the property. Until that time, the facility
operator can continue to charge rent. It’s expected that those making a claim
will pay to avoid the enforcement of the lien over the contents.
MAKE
ARRANGEMENTS TO CONTINUE PAYMENTS
When it comes to tenant death, there’s a few basic issues in mind. Most
important, just because a tenant has died doesn’t mean his/her obligation to
creditors has also ceased to exist. Even if your loved ones are going to clear your
storage unit quickly after you pass away, that doesn't mean there won't be any
money owed. Making the rental payments is vital, or the unit and all its
contents could eventually be seized. You can leave money to make the payments
if you want, or simply leave instructions that the payments should be made. No
matter what you decide with that, though, make sure your family or another trusted
person knows your wishes. Someone has to pay rent on the storage unit or the unit will
eventually go into foreclosure.
It's not always comfortable to think about what
will happen to our things after we die, but it's important and responsible to
make arrangements. By taking some time to make decisions about the things in
your storage unit, and how that unit is accessed, you can feel better about
what you leave behind.
This article is not intended to
offer legal advice, it’s just a general look at handling a deceased tenants
storage unit and items contained therein. Please consult legal counsel as laws
vary from state to state and from situation to situation.