Arizona Landlord Tenant Blog

Must an out-of-state owner/landlord have a local property manager?

No, out-of-state owners/landlords are not required to have a local property manager, but out-of-state owners/landlords must have an in-state statutory agent, which is different.  A property manager manages the property, collects rent, etc., whereas a statutory agent merely receives notices and legal service of process on behalf of the owner. If an out-of-state owner/landlord fails to have a statutory agent, the owner/landlord is subject to substantial statutory fines and this is also legal grounds for a tenant to terminate an existing lease.  An out-of-state owner must have an in-state statutory agent. And, as a practical matter, it makes sense to have a local property manager because s/he can be more responsive to complaints, etc.  Also, if there is an eviction, the local manager can provide testimony about the relevant facts, otherwise the out-of-state owner will need to personally appear to give testimony.

What if a tenant dies during tenancy?

If the tenants are husband and wife, then the surviving spouse remains obligated on the lease and will be responsible for taking care of the deceased tenant's property and estate.  Simple enough.

If the tenants are unrelated (i.e., roommates), then someone must step in and take care of the deceased's property and estate.  Now it gets harder.  Who will that be?  You don't know and you should not "guess." 

For example, let's say we have an 18 year old boy, who is your tenant.  He dies.  If the boy's mother shows up, you may be tempted to turnover all the boy's property to her.  That may be a bad decision.  What if the father later shows up?  What if, after telling you that the mother is a drug addict and that he was given full custody of the boy in the divorce proceedings 10 years ago, he then asks you to turn over the boy's personal property.  Now what?  Get ready to pay out some money, that's what.

Do not turn over any property belonging to a deceased tenant until someone gives you a court order appointing that person as the personal representative of the deceased tenant's estate.

But there is an alternative.  The Act was amended in August 2007 and it now gives landlords a quick and easy way out of this dilemma.  Section 33-1314(F) permits the landlord to request the name, address and phone number of the person the tenant authorizes to enter the rental property and remove the tenant's personal property if the tenant dies during tenancy.  This statute goes on to completely release the landlord from any and all liability if the landlord follows this procedure.

BOTTOM LINE: Landlords should insist that all tenants designate a person who is authorized, under A.R.S. 33-1314(F), to remove the tenant's personal property if the tenant dies.