A Property Managers’ Guide to Handling Abandoned Property
- Christian Bryant
- Mar 30
- 2 min read
Managing abandoned property is a critical aspect of property management that requires careful attention to legal and practical considerations. This article provides an overview of the essential steps and best practices for dealing with abandoned property, based on the comprehensive training provided by Real Estate & Property Management Education LLC.
Understanding Abandoned Property
Abandoned property refers to items left behind by tenants after they vacate a rental unit. Property managers must determine what can be discarded and what must be stored, ensuring compliance with local laws and regulations.
Key Definitions
Current Market Value: The price agreed upon by a willing buyer and seller in an arms-length transaction.
Dispose of Property: Landlords can discard or donate items without benefiting personally.
Goods: Items left inside and around the rental unit.
Lienholder: An entity with a recorded ownership interest.
Personal Property: Includes goods, vehicles, and recreational vehicles.
Legal Requirements
Landlords must follow specific procedures when handling abandoned property:
Notice Delivery: Must be personally delivered or mailed to the tenant.
Contact Period: Tenants have 5 days to contact the landlord (8 if mailed) and 15 days to remove their belongings.
Value Assessment: Items valued over $1,000 require different handling compared to those under $1,000.
Disposal and Storage
Immediate Disposal: Rotting food and pets can be immediately removed.
Storage: Remaining items must be safely stored, either in the unit, a garage, or a storage unit.
Cost Recovery: Landlords can add reasonable storage expenses to the final accounting.
Selling Abandoned Property
If the tenant does not reclaim their belongings, landlords may sell the items:
Public or Private Sale: Efforts must be made to sell at a fair market value.
Proceeds Allocation: Deduct costs of notice, storage, and sale, followed by unpaid rent. Remaining funds go to the tenant or county treasurer if unclaimed.
Handling Abandoned Vehicles
Separate Notice: Vehicles require a separate notice and a 45-day contact period.
Sale Process: Similar to personal property, vehicles can be sold publicly or privately, with proceeds allocated accordingly.
Conclusion
Properly managing abandoned property is crucial for maintaining compliance and minimizing liability. For a deeper understanding and practical training, consider attending our live classes or purchasing a video of the last session.
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References
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