When Family Members Disagree: Who Can Collect Rent from an Inherited Property?

 When a parent dies leaving a rented building, the rent keeps coming in. Who has the right to collect it is often contested. A common flashpoint is one family member acting alone, for example by instructing auctioneers to levy distress against a tenant.

The estate comes first. Under the Law of Succession Act, a deceased person's property is managed by the personal representatives appointed by the court. Until there is a grant, nobody is entitled to deal with estate property on their own account. A person who takes, collects or disposes of estate assets without authority may be intermeddling, which section 45 of the Act makes an offence.

Co-landlords must act together. Where several people jointly hold the landlord's interest, the general rule is that they act jointly. One co-owner cannot, without the others' authority, terminate the tenancy, change the rent or seize a tenant's goods for arrears. Distress for rent under the Distress for Rent Act is a powerful remedy. It must be levied by the person entitled to the rent, through a licensed auctioneer and in strict compliance with the law.

The tenant's position. A tenant caught between feuding landlords risks paying twice. Business tenants in controlled tenancies can seek protection from the Business Premises Rent Tribunal, which can restrain an unlawful distress and give directions on who should receive rent.

How we approach these disputes.

• Establish who holds the grant and the authority to act for the estate.
• Challenge any unilateral distress before the Tribunal and seek preservation of the rent.
• Push for a transparent arrangement, such as an estate account, so rent is not lost to infighting.
• Coordinate the tenancy dispute with the succession proceedings so the two forums do not issue conflicting orders.

Takeaways. If you inherit rental property with siblings, obtain a grant early and agree in writing how rent will be collected and accounted for. If you are a tenant, ask for proof of authority before paying anyone new. Rent collected outside the estate's control is a frequent cause of years of litigation.