What Happens if my Landlord is Selling my House?

The uncertainty of not knowing what is happening when your landlord sells the property you are renting can be unnerving. You may wonder, “What is going to happen to me, my lease, and my family?” “Am I going to be forced to leave once the buyer finalizes the deal?” “Is the new landlord going to raise my rent, as soon as they get the property?” Well, we are here to reassure you that there is no need to worry, there likely will be changes, but not as earth-shattering as it may seem in the moment.

Occasionally a landlord will decide to sell their rental property for many different reasons. These reasons can include 1.) Not wanting to deal with the hassle of maintaining an additional property 2.) They may be re-locating and are not comfortable managing from a distance 3.) They want to sell the property for additional income. Whatever the reason, it’s important to remember that you have rights as a tenant. Here are a couple of commonly asked questions!

“Am I going to be evicted as soon as the property sells?”

No, when a person purchases a property with tenants currently living there, they must honor the lease agreement. If you are halfway through a year lease, your lease is good until the end day. Now afterward, you may receive a notice to vacate, since the lease will no longer remain viable. It is then, that the new owners can make that decision if they want to offer a renewal (with a possible increase) or issue the 30 days to vacate.

Now if you are on a month-to-month lease, this is where things get sticky. Legally, the new owner can issue a 30-day to vacate notice right then and there. Then you will have 30 days to find a new place of residence and have everything moved out.

“Do I have to comply with showings in my apartment?

In most cases, yes. To get the exact answer, it is wise to refer to your lease agreement. It is likely that the lease states that you are required to allow access to the landlord if given adequate notice, such as 24 hours – or even immediately, in case of emergency. In this case, your landlord does have the right to access your unit. Typically, it is a good practice to cooperate with the showing, even though they can be a nuisance. Be sure to put away any expensive items you don’t want on display because the buyer may want to take pictures to reference the space.

If you cooperate with the owner and the potential buyers, you are more likely to establish a smoother relationship with the buyer and they may be more inclined to allow your lease to renew.

 

“Since I paid my security deposit to the old landlord, will I get it back if I move out?”

This depends entirely on how you left the unit, just like any normal lease. If there are excessive damages that were not there when you moved in, then the charges are subject to be deducted from your security deposit. However, if you left the property in good shape, gave appropriate notice, and don’t owe any outstanding balances to the landlord, then you are required to have your security deposit returned to you. Just because the owners have changed, does not mean the security deposit gets taken as well. The security deposit stays with the property, not to be touched until the very end of your tenancy.

 

“But wait! My lease has a ‘lease termination due to sale’ clause in it. What does this mean?”

Simply put, this clause means that you agreed, when you signed your lease, that if at all your landlord were to sell the property, that your lease would be terminated. Now, you will still have to be issued a 30-day notice to vacate. This may even be a 60 or 90-day notice, depending on the state and the rules. Even though this is not ideal, it is the reality of renting a property. At the end of the day, it’s not your property that you own and can make the financial decisions about. Renting is convenient because it means you aren’t tied down to a property for an extended period or financially responsible for any repairs (that aren’t from your doing).

Overall, each circumstance is going to be different. Not every property sale goes the same or as smoothly as we would like. So, it’s important to remain patient with your landlord and with any requests that they may have regarding showings, repairs, or changes, while also remembering your rights as a tenant. Maintaining a good flow of communication during these times should ease any worries that you may have and help you to feel more informed about what is happening with your rental.