Can you sell with tenants living there?
Generally, yes. In most cases a sale doesn't cancel an existing lease, and the buyer takes over as the new landlord under the same lease terms. Month-to-month tenancies can usually be ended with proper written notice, but the notice required depends on state law and the lease.
In Tennessee, many larger counties, including Shelby and Madison, fall under the state's Uniform Residential Landlord and Tenant Act, which sets rules on notices, entry and security deposits. Mississippi has its own landlord-tenant laws. Always check your lease and the rules that apply to your property.
What to gather before you sell
- Copies of current leases and any written amendments.
- Rent amounts, due dates and any balance owed.
- Security deposits held, which typically transfer to the buyer at closing.
- Any known repair issues or open maintenance requests.
Listing vs. selling to an investor
Listing a rented house can be tricky: showings require notice to tenants, many retail buyers want the house vacant, and repairs may be hard to schedule with someone living there. Selling directly to a buyer who's comfortable owning rentals avoids most of that. They'll buy based on the house and the lease as they are today.
Be respectful of your tenants throughout. Give proper notice before any visit, and let them know who to contact after the sale.
How we help landlords
We buy single-family rentals across the Memphis area, Jackson and DeSoto County with tenants in place, including houses with deferred maintenance or below-market rent. We'll schedule one walkthrough with proper notice and make a no-obligation cash offer.
Not legal advice. This guide is general information only, not legal, tax or financial advice, and laws and procedures change. For advice about your situation, talk with a licensed attorney, tax professional or HUD-approved housing counselor.