Selling a House with Renters in Mississippi: What Landlords Need to Know
Selling a property with active tenants in Mississippi requires careful navigation of state landlord-tenant laws that protect both parties' interests. Mississippi landlords must honor existing lease agreements when selling rental property, though they may have options to terminate month-to-month tenancies with proper notice.
Failure to follow Mississippi's legal requirements when selling tenant-occupied property could result in legal disputes, delayed sales, or financial liability. Always provide proper written notice to tenants and understand how their lease rights affect your ability to sell.
Key Considerations
Scenarios
Decisions
Scenarios
Decisions
Scenarios
Decisions
Relevant Documents
Assignment of Leases
A legal document that transfers the landlord's rights and obligations under existing lease agreements to the new property owner, ensuring continuity of the tenancy terms.
Cash for Keys Agreement
A document that formalizes an arrangement where the property owner offers financial incentive to tenants to vacate the property voluntarily before the sale or closing date.
Early Lease Termination Agreement
If the seller and tenants mutually agree to end the lease early before the sale, this document outlines the terms of that agreement, including any compensation or notice periods.
Estoppel Certificate
A document signed by tenants confirming the terms of their lease, current rent amount, security deposit held, and that the landlord is not in default. This provides assurance to potential buyers about the status of existing tenancies.
Notice to Tenants of Intent to Sell
A formal written notice informing tenants of the property owner's intention to sell the property. This document helps establish clear communication and may be required by law in many jurisdictions.
Property Disclosure Statement
A document where the seller discloses known material defects and other important information about the property, including the presence of tenants and the terms of their occupancy.
Real Estate Purchase Agreement
The contract between seller and buyer that should specifically address the existence of tenants, the status of their leases, and how those leases will be handled during and after the sale.
Rent Roll
A document that lists all rental units, current tenants, lease terms, monthly rent amounts, security deposits, and payment histories. This provides potential buyers with a clear picture of the property's rental income.
Security Deposit Transfer Agreement
A document that formalizes the transfer of tenant security deposits from the seller to the buyer, including accounting for all deposits and accrued interest where applicable.
Relevant Laws
Mississippi Code § 89-8-19 - Landlord's Right of Entry
This law requires landlords to provide reasonable notice (typically 24-48 hours) before showing a property to prospective buyers. When selling a tenant-occupied property, this means coordinating showings with tenants and respecting their right to privacy during the sales process.
Mississippi Code § 89-8-13 - Tenant Obligations
This statute outlines tenant responsibilities, including allowing reasonable access for property showings. However, tenants cannot be forced to excessively accommodate showings that substantially interfere with their right to quiet enjoyment of the property.
Mississippi Code § 89-8-23 - Termination of Tenancy
For month-to-month tenancies, Mississippi law requires 30 days' notice to terminate. For fixed-term leases, the lease continues until its expiration date regardless of property sale. This means sellers must either wait until the lease expires, sell with tenants in place, or negotiate an early termination with tenants.
Mississippi Code § 89-7-27 - Sale of Leased Premises
This law establishes that when a property is sold, the new owner is bound by existing lease agreements. The lease transfers with the property, meaning buyers must honor the terms of any active lease unless it contains specific early termination provisions.
Mississippi Code § 89-8-17 - Security Deposits
This statute governs security deposit handling during property transfers. When selling a tenant-occupied property, the seller must either transfer security deposits to the new owner or return them to tenants. The law requires proper documentation of this transfer to avoid liability.
Mississippi Code § 89-8-7 - Disclosure Requirements
Sellers must disclose the existence of tenants and provide copies of all lease agreements to potential buyers. Failure to disclose tenant occupancy could constitute misrepresentation and potentially lead to legal issues after the sale.
Regional Variances
Northern Mississippi
Oxford has additional protections for student renters attending the University of Mississippi. Landlords selling property with student tenants must provide at least 60 days' notice before requiring them to vacate, which is longer than the standard 30-day notice required under Mississippi state law. This is particularly relevant during the academic year when finding alternative housing can be challenging.
Tupelo has local ordinances that require sellers to disclose to potential buyers if the property has been used as a rental within the past 24 months, even if no tenants currently occupy the property. This is more stringent than state requirements and can affect the selling process.
Central Mississippi
Jackson has enacted tenant protection ordinances that require landlords selling rental property to offer existing tenants the first right of refusal to purchase the property before listing it on the open market. This is not required under state law and adds an additional step to the selling process in the capital city.
Madison County enforces stricter notice requirements for property showings when tenants are present. Sellers must provide 48 hours' notice before showing the property to potential buyers, compared to the 24-hour notice that is standard in most of Mississippi.
Gulf Coast Region
Biloxi has special provisions for vacation rental properties being sold. If a property has been used for short-term rentals, sellers must comply with additional disclosure requirements and may need to honor existing short-term rental agreements that extend beyond the sale date, which can complicate closing timelines.
Gulfport has implemented post-Hurricane Katrina ordinances that affect the sale of rental properties. Sellers must provide documentation of flood insurance requirements to tenants and potential buyers, and must disclose any history of flooding or storm damage, creating additional paperwork requirements when selling tenant-occupied properties.
Suggested Compliance Checklist
Review Existing Lease Agreements
1 days after startingCarefully review all current lease agreements to understand tenant rights, lease terms, and any provisions related to property sale. Mississippi law requires that new owners honor existing leases, so understanding these agreements is crucial. Pay special attention to lease duration, termination clauses, and any right of first refusal provisions.
Prepare Property Disclosure Statement
7 days after startingMississippi law requires sellers to disclose known material defects about the property. When selling a tenant-occupied property, be sure to include information about the rental history, any ongoing maintenance issues, and tenant-related property damage. This disclosure must be provided to potential buyers before they make an offer.
Draft Notice to Tenants of Intent to Sell
10 days after startingWhile Mississippi doesn't specifically require notifying tenants of your intent to sell, providing written notice is a best practice. This notice should inform tenants of the upcoming sale, explain how showings will be handled, and reassure them about their lease rights. Mississippi law requires that landlords provide 'reasonable notice' before entering the property, which is typically 24-48 hours.
Create a Rent Roll Document
14 days after startingPrepare a comprehensive rent roll that includes details about each tenant, their lease terms, monthly rent amounts, security deposit amounts, payment history, and any outstanding issues. This document will be essential for potential buyers to understand the rental income and tenant situation.
Request Estoppel Certificates from Tenants
21 days after startingAsk each tenant to complete an estoppel certificate, which verifies the terms of their lease, current rent, security deposit amount, and confirms there are no undisclosed agreements between landlord and tenant. This document protects both the seller and buyer by preventing tenants from later claiming different lease terms.
Determine Selling Strategy: Occupied vs. Vacant
28 days after startingDecide whether to sell the property with tenants in place or vacant. In Mississippi, if you choose to have tenants vacate before selling, you must follow proper termination procedures. For month-to-month tenancies, provide 30 days' written notice. For fixed-term leases, you generally cannot terminate early unless the lease contains specific provisions allowing this or the tenant breaches the lease terms.
Consider Cash for Keys Agreement (If Applicable)
35 days after startingIf you decide to sell the property vacant and need tenants to leave before their lease ends, consider offering a 'cash for keys' agreement. This voluntary agreement provides financial incentive for tenants to vacate early. The amount should be significant enough to cover moving expenses and the inconvenience. Remember that tenants are not obligated to accept this offer if they have a valid lease.
Draft Early Lease Termination Agreement (If Applicable)
42 days after startingIf tenants agree to terminate their lease early, create a formal agreement documenting the terms. This should include the move-out date, any financial compensation, security deposit handling, and a release of future obligations. Both parties should sign this document to make it legally binding in Mississippi.
Prepare for Property Showings
45 days after startingEstablish a showing schedule that respects tenant rights. Mississippi law requires 'reasonable notice' before entering a rental property, generally interpreted as 24-48 hours. Create a written policy for showings that includes notice procedures, time restrictions, and tenant privacy considerations. Consider offering incentives to tenants for maintaining the property in showable condition.
Draft Real Estate Purchase Agreement with Tenant Provisions
50 days after startingWork with a real estate attorney to create a purchase agreement that addresses the tenant-occupied status. Include provisions about lease assignments, security deposit transfers, and tenant notifications. Mississippi law requires that security deposits transfer to the new owner, who becomes responsible for their proper handling and eventual return.
Prepare Assignment of Leases Document
55 days after startingCreate a formal assignment of leases that transfers all landlord rights and obligations to the new owner. This document should list all current leases, their terms, and include copies of the original lease agreements as attachments. Mississippi law automatically transfers lease obligations to new owners, but having this document creates clarity for all parties.
Create Security Deposit Transfer Agreement
60 days after startingDraft an agreement that documents the transfer of all security deposits to the new owner. Mississippi law (§ 89-8-21) requires landlords to return security deposits within 45 days of lease termination, less any allowable deductions. The new owner assumes this responsibility, so proper documentation of deposit amounts and conditions is essential.
Notify Tenants of New Ownership
65 days after startingAfter closing, provide written notice to all tenants informing them of the new ownership, including contact information for the new landlord and instructions for future rent payments. While not explicitly required by Mississippi law, this communication is essential for a smooth transition and helps prevent confusion about where to send rent payments.
File Change of Ownership with Tax Assessor
70 days after startingUpdate property ownership records with the county tax assessor's office in the Mississippi county where the property is located. This ensures that property tax bills and other official notices are sent to the correct owner. Each county may have slightly different procedures, so contact the specific county tax assessor's office for their requirements.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Review Existing Lease Agreements | Carefully review all current lease agreements to understand tenant rights, lease terms, and any provisions related to property sale. Mississippi law requires that new owners honor existing leases, so understanding these agreements is crucial. Pay special attention to lease duration, termination clauses, and any right of first refusal provisions. | - | 1 |
| Prepare Property Disclosure Statement | Mississippi law requires sellers to disclose known material defects about the property. When selling a tenant-occupied property, be sure to include information about the rental history, any ongoing maintenance issues, and tenant-related property damage. This disclosure must be provided to potential buyers before they make an offer. | Property Disclosure Statement | 7 |
| Draft Notice to Tenants of Intent to Sell | While Mississippi doesn't specifically require notifying tenants of your intent to sell, providing written notice is a best practice. This notice should inform tenants of the upcoming sale, explain how showings will be handled, and reassure them about their lease rights. Mississippi law requires that landlords provide 'reasonable notice' before entering the property, which is typically 24-48 hours. | Notice to Tenants of Intent to Sell | 10 |
| Create a Rent Roll Document | Prepare a comprehensive rent roll that includes details about each tenant, their lease terms, monthly rent amounts, security deposit amounts, payment history, and any outstanding issues. This document will be essential for potential buyers to understand the rental income and tenant situation. | Rent Roll | 14 |
| Request Estoppel Certificates from Tenants | Ask each tenant to complete an estoppel certificate, which verifies the terms of their lease, current rent, security deposit amount, and confirms there are no undisclosed agreements between landlord and tenant. This document protects both the seller and buyer by preventing tenants from later claiming different lease terms. | Estoppel Certificate | 21 |
| Determine Selling Strategy: Occupied vs. Vacant | Decide whether to sell the property with tenants in place or vacant. In Mississippi, if you choose to have tenants vacate before selling, you must follow proper termination procedures. For month-to-month tenancies, provide 30 days' written notice. For fixed-term leases, you generally cannot terminate early unless the lease contains specific provisions allowing this or the tenant breaches the lease terms. | - | 28 |
| Consider Cash for Keys Agreement (If Applicable) | If you decide to sell the property vacant and need tenants to leave before their lease ends, consider offering a 'cash for keys' agreement. This voluntary agreement provides financial incentive for tenants to vacate early. The amount should be significant enough to cover moving expenses and the inconvenience. Remember that tenants are not obligated to accept this offer if they have a valid lease. | Cash for Keys Agreement | 35 |
| Draft Early Lease Termination Agreement (If Applicable) | If tenants agree to terminate their lease early, create a formal agreement documenting the terms. This should include the move-out date, any financial compensation, security deposit handling, and a release of future obligations. Both parties should sign this document to make it legally binding in Mississippi. | Early Lease Termination Agreement | 42 |
| Prepare for Property Showings | Establish a showing schedule that respects tenant rights. Mississippi law requires 'reasonable notice' before entering a rental property, generally interpreted as 24-48 hours. Create a written policy for showings that includes notice procedures, time restrictions, and tenant privacy considerations. Consider offering incentives to tenants for maintaining the property in showable condition. | - | 45 |
| Draft Real Estate Purchase Agreement with Tenant Provisions | Work with a real estate attorney to create a purchase agreement that addresses the tenant-occupied status. Include provisions about lease assignments, security deposit transfers, and tenant notifications. Mississippi law requires that security deposits transfer to the new owner, who becomes responsible for their proper handling and eventual return. | Real Estate Purchase Agreement | 50 |
| Prepare Assignment of Leases Document | Create a formal assignment of leases that transfers all landlord rights and obligations to the new owner. This document should list all current leases, their terms, and include copies of the original lease agreements as attachments. Mississippi law automatically transfers lease obligations to new owners, but having this document creates clarity for all parties. | Assignment of Leases | 55 |
| Create Security Deposit Transfer Agreement | Draft an agreement that documents the transfer of all security deposits to the new owner. Mississippi law (§ 89-8-21) requires landlords to return security deposits within 45 days of lease termination, less any allowable deductions. The new owner assumes this responsibility, so proper documentation of deposit amounts and conditions is essential. | Security Deposit Transfer Agreement | 60 |
| Notify Tenants of New Ownership | After closing, provide written notice to all tenants informing them of the new ownership, including contact information for the new landlord and instructions for future rent payments. While not explicitly required by Mississippi law, this communication is essential for a smooth transition and helps prevent confusion about where to send rent payments. | - | 65 |
| File Change of Ownership with Tax Assessor | Update property ownership records with the county tax assessor's office in the Mississippi county where the property is located. This ensures that property tax bills and other official notices are sent to the correct owner. Each county may have slightly different procedures, so contact the specific county tax assessor's office for their requirements. | - | 70 |
Frequently Asked Questions
Yes, you can sell your property in Mississippi even with tenants living in it. However, the sale does not automatically terminate existing lease agreements. The new owner generally must honor the terms of any valid, existing lease until it expires. Month-to-month tenancies can typically be terminated with proper notice after the sale.
Mississippi law doesn't require you to give tenants notice specifically about selling the property. However, if you need to access the property for showings, you should provide reasonable notice (typically 24-48 hours) before entering. If you want the tenants to move out before selling, you must follow proper eviction procedures or wait until their lease expires.
In Mississippi, you cannot evict tenants simply because you want to sell the property. You can only evict tenants for valid reasons such as non-payment of rent, lease violations, or when their lease term has ended. If tenants have a fixed-term lease, they generally have the right to stay until the lease expires, even if the property changes ownership.
When selling a rental property in Mississippi, you should transfer all security deposits to the new owner and provide an accounting of these funds. The new owner becomes responsible for the security deposits. Make sure to document this transfer in your sales agreement to protect yourself from future liability.
Yes, you should disclose to potential buyers that the property is tenant-occupied. You should also provide copies of all lease agreements so buyers understand what obligations they will be assuming. Failure to disclose this information could potentially lead to legal issues after the sale.
Yes, you can show the house to potential buyers while tenants are living there, but you must respect the tenants' rights. In Mississippi, landlords must provide reasonable notice (typically 24-48 hours) before entering the property. It's best to work with your tenants to establish a showing schedule that minimizes disruption to their lives.
If tenants refuse to allow showings despite reasonable notice, review your lease agreement first. Most leases include provisions allowing the landlord to show the property to prospective buyers with proper notice. If tenants continue to refuse access unreasonably, you may have grounds for legal action, but it's usually best to try negotiating with them first, perhaps by offering reduced rent during the showing period.
Waiting until the lease expires before selling can simplify the process and potentially make your property more attractive to buyers who want immediate occupancy. However, this isn't always necessary or practical. Many investors are specifically looking for tenant-occupied properties with stable rental income. Consider your specific situation, market conditions, and the terms of your existing lease when making this decision.
With month-to-month tenants in Mississippi, you have more flexibility. You can terminate a month-to-month tenancy by providing 30 days' written notice to the tenant. This allows you to sell the property without tenants if desired. Alternatively, you can sell with the tenants in place, and the new owner can decide whether to continue the rental arrangement or provide notice to terminate after the sale.
The new owner must honor the terms of any existing fixed-term lease until it expires. They cannot raise the rent or change other terms during this period unless the lease specifically allows for it. For month-to-month tenancies, the new owner can change terms (including rent increases) with proper notice, which is typically 30 days in Mississippi.