How To Legally Handle Abandoned Property: Tips for Landlords

As a landlord, picture this scenario: You have a tenant who just moved out of your property and left some personal belongings behind. And you haven’t heard from them in ages!

It’s common for some tenants to leave some possessions when they move out of rental properties. This often leaves landlords unsure of what to do next. Can you dispose of these items or sell them? Or do you need to take some legal steps?

This article offers practical tips for handling an abandoned property. As a landlord, learn what legal steps to take and how to sell abandoned belongings. Read below.

What Counts as Abandoned Property?

In a nutshell, abandoned property includes any personal belongings a tenant leaves behind without the intention to return. However, its legal definition varies from one state to another. 

The Texas Property Code, for instance, considers property abandoned after three years without contact from the tenant. The good news is that most states have similar rules.

For property rentals, only personal items, such as TVs, laptops, phones, and bikes, are generally considered parts of abandoned property. However, they don’t necessarily include fixtures like attached shelves or built-in furniture pieces that are part of the property structure.

Andrew Bates, COO at Bates Electric, works with several clients needing electrical services. He provides a concrete example of what constitutes an abandoned property. “While you can either sell or dispose of your tenant’s items like their appliances, you cannot do so for installed electrical fixtures, such as light switches and outlets.”

However, Bates recommends every landlord set a detailed contract in place. He cites that a lease agreement outlines specific terms for dealing with left-behind possessions. He claims, “As a landlord, it’s crucial to review this contract to understand your rights and responsibilities as well as avoid legal and financial consequences.”

Now that you know what counts as abandoned property, let’s dive into what to do if you think you have a case on your hands.

Common Scenarios of Property Abandonment

Tenant abandonment does happen—it can strike any landlord at any time and anywhere. But to begin, does the specific reason your tenant left matter? Yes, it does! 

While laws vary by state, how a tenant leaves—or is asked to leave—often impacts what you can do with their belongings. The laws and regulations governing rental businesses dictate how you should proceed with handling abandoned property.

That said, here are a few scenarios to keep in mind:

• When your tenant leaves voluntarily. If your tenant leaves by choice and gives notice, you don’t need to take as many steps to secure or store the abandoned property. However, it’s still a good idea to document the condition of the items to avoid any future disputes.

• When you ask your tenant to leave. If your tenant leaves after you’ve asked and given proper notice, you have more power to exercise in handling possessions left behind. Most states give landlords more freedom in dealing with abandoned items. But you’ll still need to follow the correct legal procedures to avoid potential claims.

• When your tenant disappears. If your tenant disappears without any warning, you generally need to handle their belongings with extra care, as they might return. In some states, the law may require you to store their items for a certain period, even if there’s no communication from the tenant.

• When your tenant gets evicted. When you evict a tenant, refer to your state laws. Some states require landlords to take extra care with any property left behind, while others are more lenient. Look at the number of eviction cases filed by landlords:

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Learn how to lawfully deal with an abandoned property in the next section.

Crucial Steps for Handling Abandoned Property Legally

Protecting yourself from legal and financial ramifications is crucial when dealing with abandoned property. Even if your tenant leaves belongings behind, you can’t simply dispose of them as you please. Neither can you sell these items and make money from them.

For better tenant management, follow the key steps below to stay legally compliant:

1. Know the laws in your area

Understanding your local laws is essential, especially with complex rules like New York landlord-tenant laws. Since regulations vary from state to state, check the specific rental laws where your property is located. For instance, the state of Washington defines property abandonment as follows:

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Jeffrey Zhou, CEO and Founder of Fig Loans, recommends consulting with lawyers specializing in real estate laws and regulations. “They can help you avoid legal pitfalls and costly financial consequences by ensuring you’re fully compliant with local laws from the start. Investing in professional guidance early on often saves you from much bigger expenses down the road.”

2. Keep your property secure

As a landlord, you’re responsible for any items left behind by your tenant. While it might feel unfair, your responsibility ends once you’ve taken reasonable steps to comply with the law, and your tenants might also be liable for any storage or security costs. To avoid problems, document the property conditions before a new tenant moves in.

Simon Healy, Director at Wardrobe Warehouse, suggests securing the abandoned property. “When it comes to abandoned personal items, like electronics or furniture, securing them is key. Taking steps to protect those items, even if just storing them safely, can save you from costly legal disputes down the line. It doesn’t have to be expensive, but the peace of mind is worth it.”

3. Give proper notice to tenants 

Before considering a property abandoned, you must provide proper notice, like a formal notice to vacate, giving your tenants the chance to remove their belongings. If you’ve lost contact with the tenant, this requirement might be waived, but it’s best to consult with a lawyer to ensure you follow the correct legal steps. 

Nick Marshall, General Manager at Window Factory, emphasizes the importance of legal notice in the rental business. Having dealt with tenants who requested window installations but later abandoned the property, he advises landlords, “Giving proper notice is crucial. Even if you’re unsure about the tenant’s situation, following the correct legal process can protect you from future claims.”

Staying organized and consistent is key when handling abandoned properties. It’s easy for landlords to put off tasks when there’s no tenant, but this can lead to complications or even legal trouble down the road. Think of this as a large-scale project that requires structure and accountability. In industries like steel, paper, and manufacturing companies all invest in ERP systems to prevent projects from stalling or slipping through the cracks. By using similar management tools and disciplined processes, landlords can ensure they handle every property detail smoothly and avoid costly setbacks.

4. Proceed with disposal or sale

Once you’ve given notice and waited the required amount of time, you can move forward with disposing of or selling the abandoned property. Just make sure you follow your state’s rules, which may include a public sale or storing the items for a certain period. Keep everything well-documented, especially when preparing your rental property for a new tenant.

Julia Doak, Franchisor at Bedpost, advises reviewing laws and regulations when tackling abandoned property. “Whether you’re looking to throw out furniture or sell your queen-size bed and its mattresses, it’s crucial to follow the legal steps. Doing so not only protects you but also helps you get your rental property ready for the next tenant without delays.”

Key Points for Selling Abandoned Items

Before taking any action, it’s vital to understand your rights and responsibilities when dealing with abandoned property. The crucial question is: When can landlords sell the belongings or possessions for the abandoned property?

If your tenant doesn’t claim abandoned property within the timeframe set by state laws, you’re allowed to sell the items. But before doing so, here are a few things to keep in mind:

• A public sale might be required. In some states, such as California, a public sale is required for items worth $700 or more. You can usually dispose of items under that amount without a sale. For instance, if your tenant leaves behind an old TV valued at $500, you wouldn’t need to hold a public sale to dispose of it.

• You could deduct the costs you’ve incurred. While you may need to store or secure abandoned property, you can deduct those costs from the sale proceeds. For example, if you paid $100 to store the items and $50 to arrange the sale, you can subtract these costs from the proceeds.

• You might not be allowed to keep income from a public sale. Aside from covering costs, you may not keep the rest of the sales income. In California, for instance, any remaining funds must be sent to the county, though the tenant can claim them within a year.

Take it from Kathryn MacDonell, CEO at Trilby Misso Lawyers. She recommends understanding the legalities of handling an abandoned property and selling left-behind items. 

MacDonell cites, “As a landlord, knowing when you can legally sell abandoned items is essential. Some states require a public sale for high-value items, while others allow you to deduct storage costs but restrict keeping the rest of the proceeds. Always check your local laws to ensure you’re compliant.”

Final Words

If you’re unsure whether items are legally considered abandoned or what steps to take, consult a lawyer to be safe. They can help ensure you follow the proper legal process to protect your property and avoid potential liabilities.

To help avoid these situations altogether, consider adding clear terms in your lease that protect you from liability for any abandoned property. Also, check out this guide on key clauses to include in a rental lease agreement. Ultimately, this could save you from similar issues down the road!

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