What happens to a rental property when a landlord dies

Property Law

Front door of an older thatched Cape house with envelopes on the doormat and a stone garden path

When a landlord dies in South Africa, the lease generally continues, the tenant keeps paying rent, and the executor steps in to look after the property. The detail matters, because the weeks after a death are when rent goes astray and families feel pushed into decisions they are not ready to make. We look after rental properties in deceased estates across Cape Town, and most of the trouble I see comes from nobody being sure who is responsible for what.

In short

  • A lease generally does not end when the landlord dies, unless the lease itself says so.
  • The tenant should keep paying rent and change banking details only on the executor’s written instruction.
  • The estate must be reported to the Master of the High Court within 14 days, and the executor takes control of the property once appointed.
  • The deposit stays protected by the Rental Housing Act and must be refunded with interest when the lease ends.
  • Nobody has to decide on the house straight away. Keep, let or sell is the heirs’ choice, made through the executor.

Does the lease end when the landlord dies?

Generally, no. The executor steps into the landlord’s position, and once the estate is wound up the rights and obligations under the lease pass to the heirs. The exception is a lease that specifically says it ends on the landlord’s death. Even then, attorneys’ guidance is that the tenant must be given a reasonable period to move out.

If the heirs later sell, a sale generally does not end the lease either. The new owner usually has to let it run its course. So the tenant’s home is not suddenly at risk, and the rental keeps earning while the estate is sorted out.

Who does the tenant pay in the meantime?

Keep paying the rent. The lease still binds the tenant. What changes is where the money goes. Under the Administration of Estates Act, no one may liquidate or distribute an estate without letters or a direction from the Master, and once the executor holds estate money above an amount set by the Chief Master, they must open a bank account in the estate’s name. The executor, or an agency acting on the executor’s instruction, then gives the tenant the new payment details.

Until then, pay as the lease says and keep proof of every payment. Treat any request to change banking details with care: ask to see the executor’s letters and confirm by phone with someone you know.

What happens to the tenant’s deposit?

The Rental Housing Act requires the landlord to invest the deposit in an interest-bearing account, with the interest going to the tenant. When the lease ends, the deposit and interest must be refunded, less any proper deductions such as the reasonable cost of repairing damage. Because the executor generally stands in the landlord’s shoes, those duties carry on. Families should find the deposit record early.

What does the executor do?

The Master’s Office says the estate must be reported within 14 days of death, to the office where the deceased normally lived. If the estate is worth more than R250 000, the Master issues Letters of Executorship. Below that, the Master may issue a Letter of Authority instead.

Once letters are granted, the Administration of Estates Act says the executor must take custody or control of the estate’s property. Someone still has to collect rent, deal with repairs and keep clean records for the estate accounts. The executor works with the estate’s attorney and can appoint an agency for the day to day work: the same property management a living landlord would use.

What should the family do first?

  • Report the estate to the Master’s Office within 14 days. If there is a will, check whether it names an executor.
  • Find the paperwork: the lease, the deposit record, the tenant’s details and any agency mandate.
  • Tell the tenant in writing that the lease continues and who to contact until the executor is appointed.
  • Secure the property if it is empty: keys together, alarm on, regular checks.
  • Hold off on promises. Generally, only the executor can sell or transfer the property, so agree nothing with a buyer or a relative until letters are issued.

Keep, let or sell: does it have to be decided now?

No. Many families assume the house must be sold. Sometimes that is right, but the heirs may also keep it, let it, or leave it where the will puts it, such as in a testamentary trust. For property that ends up in a trust, our trust portfolio management serves the trustees.

If the heirs do want to sell, the Administration of Estates Act says the executor sells in the manner and on the conditions the heirs approve in writing, unless the will says otherwise. If an heir is a minor, or the heirs cannot agree, the Master approves how the sale happens. When the time comes, we can sell the property with the tenant’s lease in place.

That is the whole approach in one line: keep the lease running, keep the rent traceable, and let the family decide in their own time.

How The Property Bureau helps

We are an owner-run agency and have looked after Cape Town homes since 2007, in the Southern Suburbs, along the Atlantic Seaboard and on the False Bay coast. In a deceased estate we work on the executor’s instruction. We ask for a copy of the Letters of Executorship or Letter of Authority before we sign a mandate, and we report to the executor until the property is transferred or sold.

That means one person the tenant can call, rent collected through PayProp so every payment is recorded, repairs arranged with the executor’s approval, and statements the executor can use for the estate accounts. We hold the property until the family is ready, with no pressure to sell. If the heirs choose another agent, we hand over the keys, the lease and the records cleanly. Read more about how we manage property in a deceased estate.

We are not attorneys and we do not administer estates. This article is general information, not legal advice. For decisions about the estate, speak to the executor and the estate’s attorney.

Frequently asked questions

Does a tenant have to move out when the landlord dies?

Generally, no. A lease does not end on the landlord’s death unless it says so, and the executor, and later the heirs, take over the landlord’s side of it.

Who collects the rent after the landlord dies?

Once appointed, the executor collects rent into a bank account in the estate’s name, or instructs an agency to collect it. Until then, the tenant should keep paying as the lease says, keep proof, and change banking details only on the executor’s written instruction.

Can the heirs sell a property that has a tenant in it?

Yes. The executor sells in the manner the heirs approve in writing, and a sale generally does not end the lease, so the buyer usually takes over the tenancy until it runs its course.

How soon must a deceased estate be reported?

The estate must be reported to the Master’s Office where the deceased normally lived within 14 days of death. Estates over R250 000 need Letters of Executorship, and below that the Master may issue a Letter of Authority.

Sources: Master of the High Court, reporting a deceased estate (justice.gov.za); Administration of Estates Act 66 of 1965, sections 13, 18(3), 26(1), 28(1)(a) and 47 (lawlibrary.org.za); Rental Housing Act 50 of 1999, section 5(3) (saflii.org); VDT Attorneys, 4 October 2018; RealNet; Araujo Attorneys via Lionesses of Africa, 2022. All checked 27.09.2026. Reviewed September 2026.

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