Basic Overview of Abandonment Laws in NV
Abandonment laws in Nevada are significant for residents and property owners because they establish the legal process for a party to abandon real property. Abandonment itself can simply be defined as the voluntary relinquishment of property by a tenant or seller without vesting ownership in a third party. In the context of Nevada, it is important to understand how the state handles the abandonment of real property, as such laws have a significant impact on the rights of tenants, landlords and property owners. This overview will examine the general concept of abandonment laws in Nevada and their significance.
When a tenant abandons real property during the term of a lease but with time remaining before expiration, the landlord is permitted under the law to make use of self-help to remove the tenant’s possessions from the premises. Landlords even have the option to change the locks on the abandoned property, even if tenants actually still possess key access to the premises. In many cases, a landlord who has gained possession of the abandoned property will conduct a sale of contents that were left behind as potentially valuable. Regardless of whether such contents are sold , a tenant who abandons real property is liable for the entire remaining balance due and is responsible for costs associated with recovery of the premises. Tenants are also responsible for rent that accrues until the time that an eviction actually occurs.
In some instances, a landlord may be able to place a lien against a tenant’s property following abandonment, which can later be satisfied by sale of the property left behind in the abandoned premises.
Abandonment laws in Nevada can also have an impact on property owners and those who intend to purchase property that has already been abandoned. A lien for any unpaid taxes, assessments or other charges against property that has been abandoned in Nevada exists in favor of the county treasurer. Such taxes can be paid at any time. An appeal and review of a lien process is available for property owners in the event they wish to contest the amount or validity of the assessed taxes.
In most cases, property owners who have abandoned real property are liable only for those taxes that accrue for the year they abandoned the property. A person who takes title to real property that has been abandoned in Nevada has the right to recover unpaid taxes that relate to the year the abandonment occurred. If such person withholds any part of the purchase price in anticipation of recovering unpaid property taxes, such action must be taken in good faith.
Abandonment Laws by Tenants
The Nevada Revised Statues Section 118.085 states that "Abandonment" means a mutal agreement between the landlord and tenant or tenant’s abandonment of the rental unit after both of the following has occurred: (a) The rent has become overdue; and (b) The landlord has given the tenant notice in accordance with NRS 118.080 and 118.060 that the full amount of the rent has not been paid. In addition, Nevada Revised Statute 118.180 states "Unless an employee of the landlord is actually present in the rental unit at the time of removal, the attempt by the landlord to remove property which is the sole and personal property of the tenant, except if the property is abandoned as provided in NRS 118.085, is subject to arrest for forcible entry and detainer." If the rental property is vacant and the tenant is ten or more days delinquent in rent, then a landlord may enter a vacant rental unit to remove trash, debris or to inspect the property after giving the tenant at least three days’ notice.
Landlord’s Duties and Rights
In order to legally claim any abandoned property, landlords must be careful in how they proceed. The first step is to send the tenant a written demand for the tenant to remove the property and not to abandon it – this would usually be a letter stating what is going on and giving the tenant a specific amount of time to come to the property to remove his or her things so that it is clear that the tenant still has the right to possession. The important distinction here is that you have made an affirmative demand, in writing, for the tenant to come to the premises and remove his or her property. If the landlord simply removes all property from the premises without an affirmative demand, it could be argued that the landlord has taken possession, and this would be illegal. The distinction is important in the case of what is called a bailor/bailee relationship. A landowner who has exclusive possession of property with the consent of all involved may become a "bailee" in certain situations – in these cases the bailor/landowner is using the property of the bailee, and is really the "owner" of the property.
For example, in the case of Wood v. Manzi, the tenant moved out, the landlord entered the property to get it ready to rent to another person, locked and stored the tenant’s possessions at another location, and the tenant was notified of the landlord’s actions. The court found there was a bailor/bailee relationship implicating Nevada’s Uniform Commercial Code, because the landlord "exercised dominion and personal power over the property," and set aside the landlord’s disposition of the property in the form of a sale (i.e., garage sale) and ordered the proceeds to be paid to the tenant.
Under Stiegler v. McDonald, 98 Nev. 39, 641 P.2d 149 (1982), landlords and tenants have very limited rights to personal property after a lease terminates. Any property remaining on the premises becomes abandoned if the tenant does not retrieve it within fifteen (15) days after a landlord sends a notice of intent to take possession. Even if the tenant does retrieve the property within the fifteen-day period, the landlord is entitled to assess a reasonable storage fee of $5 per day, plus any resulting actual damages.
Abandonment and Belongings
In the context of landlord-tenant law, the issue of what constitutes personal property has an expansive definition. It can mean anything from excess property stored in closets to unusually large purchases. These can include, but are not limited, to furniture and appliances. If such property is left behind by a tenant when they move out, it can constitute abandoned property, in which event landlords in Nevada have specific procedures they must follow in order to dispose of or store such property.
For this discussion, personal property is not limited to that inside a tenant’s apartment. A landlord may also store property located in common areas of an apartment complex. Property that has been abandoned by the former tenant is subject to Section 118.225 of the Nevada Revised Statutes (NRS). Presumably these are only items either in a closet or left in a common area. The statute says the former tenant can claim the property any time before the items are sold or disposed of. If they do not, then the landlord can: 1) keep the property in the event a dispute arises; or 2) remove the property and store it in an appropriate location. In the event of such a dispute, the provisions of NRS 118A.320 must be followed to the extent such provision addresses personal property.
The statute obligates the landlord to send a certified letter, stating that the property will be considered abandoned if it is not claimed and removed, to the tenant or other person identified in the lease agreement so long as that person is the authorized owner of the property. After 30 days from the mailing of the letter, the landlord may remove the property and store it at the tenant’s expense. The landlord must first obtain the contact information of the person who owned or had possession of the property prior to its abandonment.
If the property is placed into storage, the landlord is required to provide the tenant with notice of the name and address of the facility and the location of the property. Notice must be given within five days of placing the property into storage. Such notice must also inform the tenant that charges may be imposed for storage.
In the event the property is found in the common areas, a landlord does not have an obligation to give notice prior to disposal of the property. However, a landlord must notify the former tenant no more than 10 days after the disposal has occurred.
Statutory Process and Notice
Landlords in Nevada who suspect that a tenant has abandoned the property must follow specific legal processes to reclaim possession of the premises. The first step is to serve the tenant with a written notice regarding any unpaid rent. This notice is required by law to be served personally on the tenant. There are specific ways to serve this notice: (1) by delivering it to the tenant in person, (2) by leaving a copy of the notice at the tenant’s residence and emailing or mailing a second copy to the tenant, or (3) by sending it via certified or registered mail.
Nevada law requires that the notice demand payment for rent due within five days of service of the notice. The statute does not require the tenant to pay within the five days, but instead allows the landlord to notify the tenant that further failure to pay rent may result in the tenant being evicted from the premises. If the tenant fails to respond within the 5-day period, the landlord is then authorized to begin formal eviction proceedings. These types of notices can be served at any time of the month.
In addition to rent, utilities are often paid by the landlord for the benefit of the tenant. Common notice requirements and payment arrangements for utilities typically include: (1) the notice must demand payment for the utilities, (2) failure to pay gets a 5-day notice as described above in paragraph (b) of NRS 40.254, (3) the notice can be served at any time of the month.
For possession of personal property by the landlord for nonpayment of rent , there are two separate statutory provisions that authorize the landlord to take possession of the tenant’s personal property when unpaid rent by the tenant is at least: (1) $150.00 pursuant to NRS 108.240, or (2) $350.00 pursuant to NRS 108.270. Under NRS 104.240, the landlord may take possession of the tenant’s personal property in the 30 days following nonpayment of rent under either threshold, however the landlord must "pay into court the amount of the unpaid rent." The landlord may execute and file a certificate allowing the sheriff or constable to take possession of the tenant’s personal property. The sheriff or constable will then return possession of the tenant’s personal property to the landlord upon receipt of the funds held in the court.
Pursuant to NRS 108.270, if the landlord has unpaid rent due in the amount of $350.00 or more, the landlord may take possession of the tenant’s personal property after giving at least 10 days written notice to the tenant. The landlord shall give notice in person or by certified mail to the tenant to pay the rent due or remove his or her property from the premises. The landlord may sell the tenant’s property at a public sale, after giving at least 10 days’ notice of such sale in a newspaper of general circulation in the county where the property was located at the time of nonpayment. After the sale, the landlord shall deliver an affidavit regarding sale for the benefit of the tenant’s creditors.
Lease Abandonment Penalties
The consequences of leaving a rental property before the expiration of a residential lease can be dire, both for credit scores and for the tenant’s rental history. Property management experts advise landlords that ignoring or failing to understand a tenant’s legal rights can have substantial downsides.
Legal proceedings against a tenant for abandoning the lease agreement. Many Nevada courts will allow a landlord to sue for the balance of rent owed by the lessee. Nevada law mandates that the tenant leave the rented property in "substantially the same condition as at the beginning of the tenancy." So, damaged carpet resulting from leaving a cigarette burning overnight can result in a substantial deduction from the tenant’s security deposit if it is not replaced or repaired. Decreases in the value of furniture should also be deducted from a tenant’s security deposit; this is considered normal "wear and tear."
Tenants are strongly advised by property management experts and eviction defense attorneys to consult an attorney before returning to a rental property after it has been vacated. Some tenants become too accustomed to either their own, or their roommate’s legal rights to enjoy their own rights. Tenants who do not "affirm" their lease when it is broken run the risk of being liable for damages to the landlord.
Credit scores are affected by a judgement in a lawsuit. The landlord can ultimately decide to simply obtain a judgment from the court and attempt to garnish wages or bank accounts. If the lawsuit is in Small Claims Court, the maximum judgment allowed is $5,000. Any judgment will ultimately be reported to credit agencies, and credit scores can be adversely affected. The tenant is also required by statute to give their forwarding address to the court so that a default judgment can be served.
The landlord may or may not be successful at collecting the full amount of the judgment. However, money judgments are earned by the landlord for the remainder of the lease term, and there is little a tenant can do to avoid the consequences of abandoning a rental lease.
Prevention Methods for Landlords
When it comes to preventing an abandon situation, a landlord or property manager should maintain an ongoing dialogue with the tenant to assure that everything is going well. As the saying goes, "an ounce of prevention is worth a pound of cure," and that certainly holds true in the abandonment situation. Every state has its own unique laws with respect to abandonment of residential rental properties and each must be examined with regards to the specific facts involved.
Whenever a tenant gets sick or injured, falls into financial hardship or their job transfers, the landlord or manager should be proactive and offer assistance. The landlord or manager should not take these situations lightly because the sooner you know the tenant is having trouble, the sooner you can implement a plan to address it.
It is also beneficial to address certain issues in the lease agreement so both the landlord and tenant are notified of certain expectations or procedures and have a common understanding. For example, including a provision in the lease agreement requiring tenants to give timely notice of a change of address during the lease term and when a tenant’s employment, job transfer or other significant circumstance changes. This not only helps the landlord or property manager to know where to send rent notices, but also shows the tenants that the landlord or manager is looking out for their welfare and are genuinely concerned about their well-being.
In some cases, you may wonder whether a tenant has abandoned the property. When you suspect that the tenant has abandoned the rental unit without giving proper notice, you can confirm your suspicions by trying to communicate with the tenant about the account status, the condition of the property or other issues. If you have a good rapport with the tenant or a property manager does, the process will be much easier.
In some situations, the tenant could be ok and is actually waiting on you as the landlord or property manager to respond. It could be that the tenant is a single female with no one to turn to during a particular situation and is too embarrassed to call. It could also be that the tenant is elderly and does not utilize a telephone or is hard of hearing. In these cases, numerous calls and visits may be necessary until the tenant can be contacted and the issue addressed.
Before taking the step of pursuing the formal abandonment process, attempt to contact the tenant and give them notice that you plan to either attempt a personal meeting or change the locks to determine the condition of the property.
While there is no solution that is guaranteed to prevent an abandonment situation from occurring, maintaining an open line of communication with the tenant and including various provisions in the lease agreement will certainly help.
Free resources and legal help
Tenants and landlords in Nevada facing abandonment issues can seek legal assistance from various organizations and government resources. Legal Aid Center of Southern Nevada is a nonprofit organization that provides free civil legal services to low-income residents of Clark County. Their attorneys can provide guidance on various landlord-tenant issues, including abandonment disputes. They offer a variety of other legal services as well. The Legal Aid Center of Southern Nevada can be reached at (702) 386-1070, and their website is lasvegaslawhelp.org. The Nevada State Bar provides a comprehensive "Find a Lawyer" tool that helps the public find legal help in their area. This database of private lawyers who volunteer valuable time to represent low- to middle-income individuals is searchable by city/county as well as type of case. You can access the tool at nevadastatebar.org. The United States Department of Housing and Urban Development (HUD) offers a variety of publications covering tenant rights and landlord responsibilities. For example , "A Good Place to Live: Your Home" offers qualified tenants a comprehensive overview of their rights. The HUD’s Tenant Rights guides are available in Spanish and English at hud.gov. The Nevada Department of Business and Industry, Housing Division provides a variety of resources and information on landlord-tenant issues. Their website contains both tenant rights and landlord rights that cover topics such as security deposits and eviction procedures. For more information on tenant and landlord resources, visit housing.nv.gov.