Signs Your Landlord is Selling, and How It May Affect You

As unfortunate as the situation is, landlords can legally put their property up for sale at any given time, even if it’s inhabited by tenants. As a tenant, however, you still have rights. You’re legally allowed to live in the unit until your lease ends, another reason why long-term leases are always encouraged.

In many cases, landlords don’t even have to let the tenants know the property is being, or has been, sold. That being said, there are a few warning signs that may indicate your landlord might be selling the property. Read on to see the signals you should be on the lookout for so you’re not caught off-guard.

What happens when your landlord sells the property?

When your landlord sells the property, there are several possible scenarios that may unfold:

1. Lease continuation: In some cases, the new owner may honor the existing lease agreement, and you can continue living in the property until the lease expires.
2. New lease agreement: The new owner may offer you a new lease agreement with updated terms, such as different rent amounts or lease duration.
3. Tenancy termination: The new owner might decide not to continue renting out the property and may provide you with a notice to vacate, allowing you a reasonable amount of time to find a new place to live.
4. Rent increase: If the local laws permit it, the new owner may choose to increase the rent once your lease term is up.

It’s essential to be aware of your rights and local rental laws to understand how the property sale will affect your tenancy and what options are available to you during this transition. It is recommended to communicate with the new owner or property management company to clarify the situation and ensure a smooth transition.

Signs your landlord may be selling the property

Be aware of the following indications that your landlord may be selling the property:

1. Scheduled viewings

Your landlord may schedule viewings of your unit, and you’ll know because you’ll see potential buyers in your home. Keep in mind that this is completely legal, so long as the landlord has given you, the tenant, at least 24-hour’s notice. Under no circumstances should your landlord or a stranger–even if they’re a potential buyer–enter your home without notice. If your landlord shows up unannounced, you have the right to refuse or deny them entry.

Expert tip: Check your existing lease to see if there is any information detailing how many viewings (per week, per month) your landlord can schedule. There may be no information regarding this and, in that case, the 24-hour notice rule is the one to follow.

2. Rent increase

Landlords have the power to raise the rent of their property, but that power varies by state laws. State laws in California, for example, require that if a landlord intends to increase the rent more than twice in a lease period, it must be written in the lease. If your landlord starts increasing your rent, it may be his or her way of pricing you out of the unit so they can put it up for sale as soon as possible.

Expert Tip: If you think your landlord is using this tactic, set up a time to chat and come prepared with information on rental prices in the surrounding area, any research you’ve found on real estate trends, and a willingness to listen to their side. You will walk away from the conversation with a better understanding of each other and may know if they are, in fact, selling the property.

3. Improvements to the unit

Although this is not a set-in-stone sign, landlords often make renovations to their property while a tenant is still living in the unit so that it’s in prime selling condition when they do decide to sell.

Fixing up the backyard, painting the exterior, and re-paving walkways are all things to look out for, although some landlords do make these renovations with no intention of selling. Either way, it’s good to be conscious of any changes made to your living space, as it may indicate a change is coming.

Steps to take when your landlord is selling the property

Other considerations

1. Potential lease transfer: If the property is sold while you are still under an active lease, be aware that the new owner may choose to assume your existing lease. In such cases, your lease terms, including rent and lease duration, will typically remain unchanged. However, it’s essential to discuss the possibility of a lease transfer with the new owner to ensure a smooth transition. In some situations, the new owner may offer alternative housing arrangements if they do not wish to continue with existing leases.
2. Rent and security deposits: During the sale process, you may be wondering how rent payments and security deposits will be handled. Ensure you understand whether you should continue paying rent to the original landlord until the property changes hands or if there will be any changes in payment methods. Similarly, clarify how your security deposit will be handled, whether it will be transferred to the new owner or returned to you according to legal requirements.
3. Property showings: Property showings are common when a property is up for sale. While your landlord may schedule showings with potential buyers, they must respect your privacy and give you reasonable notice before entering your home. Understanding the process of property showings will help you be prepared and assert your rights during this period.
4. Notice to vacate: Depending on local laws and the new owner’s intentions, you may receive a notice to vacate if the new owner intends to occupy the property as their primary residence. It’s essential to be aware of the notice period you are entitled to and the timeline you have to find alternative housing if such a situation arises.
5. Rent increases: Be aware that a change in ownership may lead to rent adjustments by the new owner. While some areas may have rent control laws that limit significant increases, it’s essential to be prepared for potential changes in your rental costs and consider how it may impact your budget.
6. Moving costs and relocation assistance: In the event of a property sale, you may need to consider the costs of moving and potential relocation assistance. Some jurisdictions may require the new owner to provide relocation assistance to tenants in specific circumstances. Understanding your rights in this regard will help you plan for any moving expenses that may arise.

What now?

If your landlord has, in fact, sold the property, you are legally allowed to reside in your apartment until the end of your lease, in most states. That works both ways, though; even if you’re eager to move out because of the ownership change, you’ll still be obligated to pay your monthly rent until the end of your lease term. Don’t worry too much about rental increases–the new property owner will also have to abide by your existing lease in regards to rent. It may even be worth speaking with the new owner and seeing if the possibility of renting from them is an option.

If you’re set on moving out and finding a new apartment elsewhere, finish out your lease and remember to take the necessary steps and collect your security deposit. State laws differ, but security deposits are usually due back to tenants within 60 days of moving out, with some states requiring it to be returned within as little as two weeks. Check to see your state’s requirements and know when to expect it back.

Frequently asked questions

Final thoughts

Navigating a landlord’s decision to sell the property can be an uncertain and challenging experience for tenants. However, understanding the signs of a potential sale and your tenant rights is essential to minimize disruptions and protect your interests. Communication with both the current and new owners is key during this process. Be proactive in seeking updates and discussing the impact on your lease agreement, rent, and security deposit.

Remember that you have rights as a tenant, and it’s crucial to know and assert them throughout the sale. Seeking legal advice or support from tenant advocacy organizations can provide additional guidance and peace of mind. By staying informed and proactive, you can successfully navigate the property sale and ensure a smoother transition to your next housing arrangement.