How to Handle a Life Tenant Who Is Not Maintaining the Property
If you are reading this guide, you are probably a remainderman and jointly own a property with a life tenant. In other words, a legally crafted and binding life estate agreement identifies you as the individual who will assume complete ownership of the property once the life tenant passes away. So, if life tenant responsibilities are not being met or the former is not maintaining the property as required, it is natural for you to be worried as your future interests are at stake here.
The following write-up explains life tenancy, your rights as a remainderman, and the steps you can take in case of property maintenance issues and other matters of non-compliance.
What are the Responsibilities of a Life Tenant?
To reiterate a life tenant’s rights, they can own and use the property till the end of their life, and the remainderman (you) cannot take possession of the same under any condition during this period. After the tenant’s death, though, the property passes to you directly without any need for probate. If applicable, the life tenant can also derive income (through rent) from the property. But what is the life tenant responsible for when moving out (possible in some cases and in lieu of a satisfactory alternative arrangement) or till they pass away?
These are the key life tenant responsibilities you should know about:
● Repairs and Maintenance: Tenant maintenance compliance is integral to a life estate agreement. This means the life tenant should take care of gutter cleaning, lawn mowing, and regular cleaning, as well as ensure prompt repairs of broken furniture, appliances, and fixtures. They should make sure that the property doesn’t deteriorate significantly over time.
● Legal Compliance: The life tenant must adhere to the federal, state, and local laws associated with the property. These might include zoning regulations, building codes, and location-specific laws.
● Handling of Regular Expenses: Paying for everyday property-related expenses like taxes, insurance premiums, and utility bills is one of the key life estate tenant responsibilities. This can help you stay away from legal fines and problems.
● Maintenance of Ample Insurance: The life tenant must ensure the property is adequately insured against losses that might arise from natural disasters and accidents and that the policy is updated.
● Home Value Retention: The life tenant cannot do anything that permanently damages the market value or structural integrity, such as removing fixtures, felling trees, or renovating extensively.
● Respect for Your Rights: As a remainderman, you are entitled to ensure that the life tenant keeps the property in good shape and doesn’t mortgage or sell it without your consent. You also have the right to protect your future interest and eventually assume full property ownership. Hence, the life tenant must respect these rights and not take any action that goes against them.
Steps to Take If Life Tenant Responsibilities are Not Met
It is crucial to take the necessary action when you notice property maintenance issues or non-compliant behavior from your life tenant. Here are some suggestions:
● Convey Expectations and Concerns: Talk to the tenant, express your concerns about the property’s condition, and remind them of their maintenance responsibilities. Specifically, mention what is being neglected and when it must be resolved.
● Go Through the Life Estate Agreement Together: If the above doesn’t work, review the agreement with the tenant and pinpoint specific maintenance-related duties and responsibilities under relevant clauses. Clarify any doubts or misunderstandings the tenant might have about the same.
● Encourage Regular Documentation of the Property’s Condition: Request the tenant to regularly and thoroughly inspect the property, capture photos, and report to you about its status. Documentation can also prevent unnecessary disputes and ensure compliance.
● Communicate Responsibilities with Legal Aid: If you find that life estate tenant responsibilities are still unmet, seek legal counsel and communicate the duties mentioned in the agreement to the tenant with a lawyer by your side. This might highlight the seriousness of the situation and encourage compliance.
● Choose Mediation: Don’t jump to expensive and time-consuming litigation if the tenant still fails to comply with their duties as per the agreement. Go for mediation involving a neutral third party so every stakeholder can reach a satisfactory agreement.
● Take Legal Action: If nothing works and you find the property steadily deteriorating or the tenant not paying taxes or utility bills, you have to take legal action. You usually need to file a petition in court for this and demand that the tenant comply with their maintenance and other obligations. In extreme situations, you can also take action to evict them. Or the court can intervene to ensure the tenant doesn’t do anything to damage the property’s value further. It can also hold the tenant legally and financially responsible for restoring the property to its original state.
Conclusion
Now that you are clear about life tenant responsibilities and what to do if things go south, you are in a better position to protect your interest and future inheritance in a joint ownership situation. However, monitoring a life tenant’s actions and the state of a property can be challenging if you are busy or live far away.
Rental property management companies
can help you by educating the tenant on preventive maintenance, scheduling routine inspections, handling documentation, and guiding them in renegotiating the terms of the life estate.
Even if you need to take legal action against the life tenant, an experienced company offering
rental management in Minnesota
can advise correctly and deal with the nitty-gritty.
Handle a Non-Compliant Life Tenant with Guardian Property Management
We at
understand the pros and cons of being a remainderman in a life estate. Not only can we encourage life tenants to toe the line during their lifetime, but we also help you find the best possible resolution if there are any gaps in tenant maintenance compliance. So,
contact Guardian Property Management
today for a detailed consultation.
We can be reached quickly at 651-287-2011 or
.
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