Selling a House with Renters in Nevada: What Landlords Need to Know
Selling a property with existing tenants in Nevada requires landlords to navigate specific legal requirements while respecting tenant rights. Nevada law provides certain protections for renters during property sales, including proper notice periods and lease agreement enforcement, which landlords must follow to avoid legal complications.
Failure to follow Nevada's tenant notification requirements or attempting to force tenants out improperly during a property sale can result in legal liability, including potential damages and attorney fees. Always consult with a real estate attorney familiar with Nevada landlord-tenant law before listing a tenant-occupied property for sale.
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
Nevada Revised Statutes (NRS) 118A.300 - Notice of termination of tenancy
When selling a property with tenants in Nevada, landlords must provide proper notice to terminate the tenancy. For month-to-month tenancies, 30 days' written notice is required. For fixed-term leases, the landlord must honor the lease term unless the lease contains an early termination clause specifically addressing property sales.
Nevada Revised Statutes (NRS) 118A.200 - Written rental agreements
When selling a property with tenants, the new owner is generally bound by existing written rental agreements. The lease transfers with the property, and the new owner must honor its terms. This is crucial for sellers to understand as it may affect the marketability of the property.
Nevada Revised Statutes (NRS) 118A.275 - Disclosure of foreclosure proceedings
Nevada law requires landlords to disclose to prospective tenants if the rental property is subject to foreclosure proceedings. When selling a property with tenants, sellers must be transparent about any pending foreclosure actions, as this affects both the tenants' rights and the sale process.
Nevada Revised Statutes (NRS) 118A.180 - Access to dwelling unit by landlord
When selling a property with tenants, Nevada law requires landlords to provide reasonable notice (typically 24 hours) before showing the property to prospective buyers. Tenants cannot unreasonably withhold consent for the landlord to enter for this purpose, but their privacy rights must be respected during the sales process.
Nevada Revised Statutes (NRS) 118A.242 - Security deposits
When a property is sold with tenants, Nevada law requires the transfer of security deposits to the new owner. The seller must either transfer all security deposits to the buyer or return them to the tenants. The new owner assumes all rights and obligations regarding security deposits.
Regional Variances
Major Urban Areas
Las Vegas has specific requirements for landlords selling tenant-occupied properties. Landlords must provide at least 60 days' notice before terminating a month-to-month tenancy due to property sale. For fixed-term leases, the new owner must honor the existing lease terms unless there's a specific clause allowing early termination upon sale. Additionally, Las Vegas has stricter showing requirements, typically requiring 24-hour written notice before showing the property to potential buyers.
Reno follows state law but has additional tenant protections. Landlords must provide reasonable accommodation for tenants during the selling process. The Reno Housing Authority may get involved if the property was part of affordable housing programs. Reno also requires more detailed documentation for security deposit transfers between the selling and buying landlords to protect tenant interests.
Rural Counties
In Elko County, landlords have somewhat more flexibility when selling tenant-occupied properties. While state laws still apply, enforcement tends to be less stringent. Tenants in mining communities may have additional protections if their housing is connected to employment. The notice requirements remain the same as state law, but the practical application may differ.
Nye County follows Nevada state law regarding tenant rights during property sales, but has less formal processes for dispute resolution. Local courts may be more accessible but have less experience with complex landlord-tenant issues. Tenants in Pahrump and other Nye County locations should document all communications with landlords during the sale process as formal notices may be less standardized than in urban areas.
Tourist and Resort Areas
This Lake Tahoe community has unique considerations for vacation rentals and seasonal leases. Properties in Incline Village often have HOA restrictions that may impact the sale process when tenants are present. Seasonal leases may have different termination requirements than standard residential leases. The high property values in this area often result in more formal sales processes with greater legal oversight.
Areas like Henderson and North Las Vegas follow Clark County regulations which generally align with state law but may have additional notice requirements for property viewings. These jurisdictions often have more standardized processes for tenant notifications during sales. Some master-planned communities have additional HOA requirements that affect how and when a tenant-occupied property can be sold.
Suggested Compliance Checklist
Review Lease Agreement
1 days after startingCarefully review all lease agreements with current tenants to understand their terms, including lease duration, rent amount, security deposits, and any special provisions. Pay special attention to clauses regarding property sale, landlord's right to show the property, and early termination options. This will determine your legal obligations to tenants during the sale process.
Determine Tenant Rights Under Nevada Law
3 days after startingResearch Nevada landlord-tenant laws (NRS Chapter 118A) to understand tenant rights when a property is sold. In Nevada, a new owner generally must honor existing leases, and month-to-month tenancies require proper notice periods for termination (30 days in most cases). Fixed-term leases typically transfer to the new owner unless there are specific early termination provisions.
Prepare Notice to Tenants of Intent to Sell
5 days after startingWhile not legally required in Nevada, it's good practice to formally notify tenants of your intent to sell the property. This notice should explain the sale process, how showings will be handled, and reassure tenants about their rights. Nevada law requires 24-hour notice before entering a tenant's unit for showings (NRS 118A.330).
Complete Property Disclosure Statement
7 days after startingNevada law (NRS 113.130) requires sellers to disclose known material defects about the property to potential buyers using the Nevada Real Estate Division's Seller's Real Property Disclosure Form. Include information about the property's condition, known defects, and the presence of tenants.
Prepare Rent Roll
8 days after startingCreate a detailed rent roll document that lists all current tenants, their lease terms, monthly rent amounts, security deposit amounts, and payment history. This document is essential for potential buyers to understand the rental income and tenant situation.
Request Estoppel Certificates from Tenants
10 days after startingAsk each tenant to complete an estoppel certificate that verifies the terms of their lease, current rent, security deposit amount, and confirms they have no claims against the landlord. This protects both the seller and buyer by documenting the tenant's acknowledgment of the lease terms.
Evaluate Options for Vacant Property Sale
12 days after startingIf selling the property vacant would be advantageous, evaluate legal options for ending tenancies. For month-to-month tenancies, provide proper 30-day notice. For fixed-term leases, consider negotiating an Early Lease Termination Agreement or Cash for Keys Agreement. Remember that in Nevada, you cannot force tenants to leave before their lease ends without their agreement unless they violate lease terms.
Draft Early Lease Termination Agreement (if applicable)
14 days after startingIf tenants agree to terminate their lease early, create a formal agreement that outlines the terms, including move-out date, any financial compensation, and release of future obligations. This document should be signed by both parties and clearly state that the tenant voluntarily agrees to terminate the lease early.
Prepare Cash for Keys Agreement (if applicable)
16 days after startingIf offering financial incentives for tenants to vacate early, draft a Cash for Keys Agreement that clearly outlines the amount offered, move-out date, property condition requirements, and payment terms. This is a voluntary agreement and cannot be forced on tenants with valid leases in Nevada.
Draft Real Estate Purchase Agreement with Tenant Provisions
20 days after startingWork with a real estate agent or attorney to create a purchase agreement that addresses the presence of tenants. Include provisions about lease transfers, security deposit transfers, and whether the property will be delivered vacant or tenant-occupied. In Nevada, be sure to include required disclosures about the property condition.
Prepare Assignment of Leases
22 days after startingDraft an Assignment of Leases document that formally transfers all lease agreements from the seller to the buyer at closing. This document should list all current leases, their terms, and state that the buyer assumes all landlord responsibilities under these leases after the sale closes.
Create Security Deposit Transfer Agreement
24 days after startingPrepare a document that transfers all tenant security deposits to the new owner. Nevada law (NRS 118A.244) requires landlords to transfer security deposits to the new owner or return them to tenants when selling property. The agreement should itemize each deposit amount and acknowledge the buyer's receipt and responsibility for these funds.
Notify Tenants of New Ownership
30 days after startingAfter closing, Nevada law requires that tenants be notified of the new ownership and where to send rent payments. While this is technically the new owner's responsibility, coordinating this communication helps ensure a smooth transition and compliance with Nevada law (NRS 118A.244).
File Change of Ownership with Local Authorities
35 days after startingEnsure that property tax records, utility accounts, and other relevant registrations are updated to reflect the new ownership. In Nevada, this typically involves filing documents with the county assessor's office and updating any local business licenses for rental properties if applicable.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Review Lease Agreement | Carefully review all lease agreements with current tenants to understand their terms, including lease duration, rent amount, security deposits, and any special provisions. Pay special attention to clauses regarding property sale, landlord's right to show the property, and early termination options. This will determine your legal obligations to tenants during the sale process. | - | 1 |
| Determine Tenant Rights Under Nevada Law | Research Nevada landlord-tenant laws (NRS Chapter 118A) to understand tenant rights when a property is sold. In Nevada, a new owner generally must honor existing leases, and month-to-month tenancies require proper notice periods for termination (30 days in most cases). Fixed-term leases typically transfer to the new owner unless there are specific early termination provisions. | - | 3 |
| Prepare Notice to Tenants of Intent to Sell | While not legally required in Nevada, it's good practice to formally notify tenants of your intent to sell the property. This notice should explain the sale process, how showings will be handled, and reassure tenants about their rights. Nevada law requires 24-hour notice before entering a tenant's unit for showings (NRS 118A.330). | Notice to Tenants of Intent to Sell | 5 |
| Complete Property Disclosure Statement | Nevada law (NRS 113.130) requires sellers to disclose known material defects about the property to potential buyers using the Nevada Real Estate Division's Seller's Real Property Disclosure Form. Include information about the property's condition, known defects, and the presence of tenants. | Property Disclosure Statement | 7 |
| Prepare Rent Roll | Create a detailed rent roll document that lists all current tenants, their lease terms, monthly rent amounts, security deposit amounts, and payment history. This document is essential for potential buyers to understand the rental income and tenant situation. | Rent Roll | 8 |
| Request Estoppel Certificates from Tenants | Ask each tenant to complete an estoppel certificate that verifies the terms of their lease, current rent, security deposit amount, and confirms they have no claims against the landlord. This protects both the seller and buyer by documenting the tenant's acknowledgment of the lease terms. | Estoppel Certificate | 10 |
| Evaluate Options for Vacant Property Sale | If selling the property vacant would be advantageous, evaluate legal options for ending tenancies. For month-to-month tenancies, provide proper 30-day notice. For fixed-term leases, consider negotiating an Early Lease Termination Agreement or Cash for Keys Agreement. Remember that in Nevada, you cannot force tenants to leave before their lease ends without their agreement unless they violate lease terms. | - | 12 |
| Draft Early Lease Termination Agreement (if applicable) | If tenants agree to terminate their lease early, create a formal agreement that outlines the terms, including move-out date, any financial compensation, and release of future obligations. This document should be signed by both parties and clearly state that the tenant voluntarily agrees to terminate the lease early. | Early Lease Termination Agreement | 14 |
| Prepare Cash for Keys Agreement (if applicable) | If offering financial incentives for tenants to vacate early, draft a Cash for Keys Agreement that clearly outlines the amount offered, move-out date, property condition requirements, and payment terms. This is a voluntary agreement and cannot be forced on tenants with valid leases in Nevada. | Cash for Keys Agreement | 16 |
| Draft Real Estate Purchase Agreement with Tenant Provisions | Work with a real estate agent or attorney to create a purchase agreement that addresses the presence of tenants. Include provisions about lease transfers, security deposit transfers, and whether the property will be delivered vacant or tenant-occupied. In Nevada, be sure to include required disclosures about the property condition. | Real Estate Purchase Agreement | 20 |
| Prepare Assignment of Leases | Draft an Assignment of Leases document that formally transfers all lease agreements from the seller to the buyer at closing. This document should list all current leases, their terms, and state that the buyer assumes all landlord responsibilities under these leases after the sale closes. | Assignment of Leases | 22 |
| Create Security Deposit Transfer Agreement | Prepare a document that transfers all tenant security deposits to the new owner. Nevada law (NRS 118A.244) requires landlords to transfer security deposits to the new owner or return them to tenants when selling property. The agreement should itemize each deposit amount and acknowledge the buyer's receipt and responsibility for these funds. | Security Deposit Transfer Agreement | 24 |
| Notify Tenants of New Ownership | After closing, Nevada law requires that tenants be notified of the new ownership and where to send rent payments. While this is technically the new owner's responsibility, coordinating this communication helps ensure a smooth transition and compliance with Nevada law (NRS 118A.244). | - | 30 |
| File Change of Ownership with Local Authorities | Ensure that property tax records, utility accounts, and other relevant registrations are updated to reflect the new ownership. In Nevada, this typically involves filing documents with the county assessor's office and updating any local business licenses for rental properties if applicable. | - | 35 |
Frequently Asked Questions
Yes, you can sell your property in Nevada even with tenants living in it. However, you must honor the existing lease agreement. If your tenants have a fixed-term lease, the new owner generally must allow them to stay until the lease expires. If tenants are on a month-to-month agreement, proper notice must still be given before requiring them to vacate.
In Nevada, if you're selling a property with tenants on a month-to-month lease, you must provide at least 30 days' written notice before requiring them to vacate. For fixed-term leases, you generally cannot terminate the lease early just because you're selling - the lease transfers to the new owner. However, if the lease contains an early termination clause specifically for property sales, you may be able to end the tenancy earlier according to those terms.
Nevada law does not automatically grant tenants a right of first refusal to purchase the property before it's sold to someone else. However, if your lease agreement specifically includes a right of first refusal clause, you would need to honor that commitment. Otherwise, you're free to sell to any buyer without first offering it to your tenants.
When selling a rental property in Nevada, you have two options regarding the security deposit: 1) You can transfer the security deposit to the new owner, who then becomes responsible for it, or 2) You can return the deposit to the tenant and have the new owner collect a new deposit. Nevada law requires that you notify tenants in writing about the transfer of their security deposit to the new owner, including the new owner's name and contact information.
The new owner's ability to evict tenants depends on the lease situation. If tenants have a fixed-term lease, the new owner must honor the terms until the lease expires, unless the lease contains specific early termination provisions. For month-to-month tenancies, the new owner can terminate with proper 30-day notice. However, the new owner must follow proper legal eviction procedures and cannot simply lock tenants out or force them to leave without notice.
Yes, you should disclose to potential buyers that the property has tenants and provide details about the lease terms. Nevada's disclosure laws require sellers to disclose material facts that could affect the value or desirability of the property. Failing to disclose tenant occupancy could potentially lead to legal issues after the sale. Additionally, providing accurate information about rental income and lease terms is important for buyers who may be evaluating the property as an investment.
Yes, you can show your house to potential buyers while tenants are living there, but you must respect your tenants' rights. In Nevada, landlords must provide 'reasonable notice' before entering the property, which is generally interpreted as at least 24 hours' notice. You should coordinate showings with your tenants, be respectful of their privacy and belongings, and try to minimize disruption to their lives. Consider establishing a showing schedule that works for all parties.
If your tenant refuses 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 your tenant is violating the lease terms, you can remind them of their obligations under the lease. If problems persist, you may need to seek legal advice or potentially file for an eviction based on lease violations. However, it's usually best to try negotiating with the tenant first, perhaps offering incentives for cooperation.
Yes, you can offer your tenants money to vacate early, commonly known as 'cash for keys.' This is a legal practice in Nevada and can be beneficial if you want to sell the property vacant. The agreement should be documented in writing, specifying the move-out date, amount to be paid, and condition the property should be left in. This approach is often less expensive and time-consuming than formal eviction proceedings, but tenants are not obligated to accept your offer.
Selling a rental property in Nevada may trigger capital gains taxes at the federal level if you sell the property for more than your adjusted basis. However, you may be eligible for a 1031 exchange to defer these taxes by reinvesting in another investment property. Nevada itself has no state income tax, which is advantageous compared to selling in states with income tax. Depreciation recapture taxes may also apply. It's advisable to consult with a tax professional familiar with Nevada real estate transactions to understand your specific tax situation.