Selling a House with Renters in New Hampshire: What Landlords Need to Know
Selling a property with existing tenants in New Hampshire requires careful navigation of both landlord-tenant law and real estate regulations. New Hampshire landlords must honor existing lease agreements when selling, while providing proper notice to tenants according to state statutes.
Failure to follow proper procedures when selling a tenant-occupied property in New Hampshire could result in legal complications, delayed sales, or potential lawsuits from tenants whose rights were violated.
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
New Hampshire RSA 540:1-a - Definition of Landlord
This law defines who is considered a landlord in New Hampshire, which includes the owner or lessor of the premises. When selling a property with tenants, the new owner becomes the landlord and assumes the rights and responsibilities under existing lease agreements.
New Hampshire RSA 540:2 - Termination of Tenancy
This statute outlines the legal process for terminating tenancies in New Hampshire. For month-to-month tenancies, landlords must provide 30 days' notice. For tenants with a written lease, the landlord generally cannot terminate the tenancy until the lease expires unless the tenant violates lease terms. This is crucial when selling a property with tenants, as the new owner must honor existing lease agreements.
New Hampshire RSA 540:3 - Notice Requirements
This law specifies the notice requirements for terminating tenancies in New Hampshire. The notice must be in writing and include specific information. When selling a property with tenants, proper notice must be given if the new owner does not wish to continue the tenancy after the lease expires or for month-to-month tenancies.
New Hampshire RSA 540:26 - Transfer of Property
This statute addresses the transfer of rental property and states that the sale of property does not automatically terminate existing leases. The new owner steps into the shoes of the previous landlord and must honor existing lease agreements. This is particularly important for sellers to communicate to potential buyers.
New Hampshire RSA 540:13 - Security Deposits
This law governs security deposits in New Hampshire, including the transfer of deposits when property is sold. The seller must either transfer security deposits to the new owner or return them to tenants. The new owner becomes responsible for the security deposits and must provide written notice to tenants about the transfer.
New Hampshire RSA 477:4-d - Disclosure of Information Concerning Real Property
This statute requires sellers to disclose certain information about the property, which would include the existence of tenants and lease terms. Failing to disclose tenant occupancy could potentially lead to legal issues with the buyer after the sale.
New Hampshire RSA 540-A:3 - Prohibited Practices
This law outlines prohibited practices by landlords, including entering the premises without proper notice. When selling a property with tenants, both the seller and potential buyers must respect tenants' rights to quiet enjoyment and provide proper notice before showing the property.
Regional Variances
New Hampshire County Variations
Manchester, as New Hampshire's largest city, has additional tenant protections. Landlords selling property with tenants must provide at least 30 days' written notice before showing the property to potential buyers, which is more stringent than the state requirement. Additionally, if the property is part of Manchester's affordable housing program, special restrictions may apply to the sale.
Nashua has specific ordinances regarding tenant notification during property sales. Landlords must provide tenants with written information about their rights during the sale process, including the right to receive 30 days' notice before termination of tenancy if the new owner intends to occupy the unit.
Portsmouth has stricter regulations for historic properties. If the rental property is located in the historic district, additional approvals may be required before sale completion, potentially extending the timeline for selling a tenant-occupied property. The city also requires more detailed documentation of property condition when tenants are in place during a sale.
In Concord, landlords selling tenant-occupied properties must disclose the existence of any outstanding code violations to potential buyers. The city also has a mediation program specifically for landlord-tenant disputes that may arise during property sales, which can be utilized before pursuing formal legal action.
Rockingham County courts tend to interpret lease assignment clauses more strictly than other counties. When selling a property with tenants who have a lease, landlords should be particularly careful about lease assignment provisions, as courts here have historically sided with tenants in disputes over lease transfers during property sales.
New Hampshire Special Housing Zones
Areas surrounding major universities like UNH (Durham), Dartmouth (Hanover), and Keene State have specific regulations for rental properties. When selling properties in these areas, landlords must honor academic year leases regardless of ownership changes, and courts strongly enforce this protection to prevent student displacement mid-semester.
In coastal communities like Hampton and Rye, seasonal rental properties have different rules. If selling a property with seasonal tenants, different notification requirements apply depending on whether the property is classified as a vacation rental or year-round housing. Local zoning boards may need to approve any change in rental classification during a sale.
In tourist-heavy areas like North Conway and Jackson, properties with short-term rental tenants face specific regulations when being sold. Sellers must disclose existing short-term rental agreements to buyers, and some municipalities require new owners to apply for renewed short-term rental permits after purchase.
Suggested Compliance Checklist
Review Lease Agreement
1 days after startingCarefully review all current lease agreements to understand tenant rights, lease terms, and any provisions related to property sale. Pay special attention to lease duration, renewal options, and any clauses that might affect your ability to sell the property. In New Hampshire, written leases remain binding even when ownership changes, so understanding these agreements is crucial.
Determine Tenant Rights Under New Hampshire Law
3 days after startingResearch New Hampshire landlord-tenant laws regarding property sales. In New Hampshire, tenants with a valid lease generally have the right to remain in the property until their lease expires, even after the sale. Month-to-month tenants must receive proper notice (typically 30 days) before being required to vacate. Understanding these rights will help you navigate the sale process legally and ethically.
Prepare Notice to Tenants of Intent to Sell
5 days after startingWhile New Hampshire law doesn't specifically require notifying tenants of your intent to sell, providing written notice is a professional courtesy and helps maintain good relations. This notice should inform tenants of your plans to sell, explain how showings will be handled, and reassure them about their rights. Remember that you must still provide reasonable notice (at least 24 hours) before entering the property for showings.
Create Property Disclosure Statement
7 days after startingNew Hampshire law (RSA 477:4-c) requires sellers to disclose certain information about the property's condition. With rental property, be sure to include information about the current tenancies, any ongoing maintenance issues, and the condition of tenant-occupied areas. This disclosure must be provided to potential buyers before they make an offer.
Request Estoppel Certificate from Tenants
10 days after startingAn estoppel certificate confirms the terms of the lease, current rent, security deposit amounts, and that the tenant has no claims against the landlord. While not legally required in New Hampshire, this document protects both the seller and buyer by documenting the current status of all tenancies. Request this from each tenant, giving them reasonable time to complete it.
Prepare Rent Roll
12 days after startingCreate a comprehensive rent roll documenting all current tenancies, including tenant names, unit numbers, monthly rent amounts, security deposits held, lease start and end dates, and any outstanding issues. This document will be essential for potential buyers to understand the rental income and tenant situation.
Determine Selling Strategy
14 days after startingDecide whether to sell the property with tenants in place or vacant. In New Hampshire, you have several options: 1) Sell with tenants in place (new owner becomes the landlord), 2) Wait until leases expire naturally, 3) Negotiate early termination with tenants, or 4) Sell to the tenants themselves. Each approach has different legal and financial implications that should be carefully considered.
Consider Early Lease Termination Agreement
17 days after startingIf you decide to sell the property vacant, and tenants have time remaining on their leases, you may need to negotiate early termination. In New Hampshire, you cannot unilaterally terminate a lease just to sell the property. This agreement should outline compensation for the tenant, moving timeline, and release of further obligations. Be aware that tenants are not obligated to accept early termination.
Draft Cash for Keys Agreement
20 days after startingAs an alternative to waiting for lease expiration, consider offering financial incentives for tenants to vacate early. This agreement should clearly state the amount offered, move-out date, property condition requirements, and that acceptance releases the tenant from further lease obligations. This approach is completely voluntary for tenants but can be mutually beneficial.
Prepare for Property Showings
22 days after startingUnder New Hampshire law (RSA 540-A:3), landlords must provide at least 24 hours' notice before entering a tenant's unit for showings. Create a system for scheduling and notifying tenants about showings that respects their rights while facilitating the sale process. Consider offering incentives for tenants who maintain the property well during showings.
Draft Real Estate Purchase Agreement
30 days after startingWhen you find a buyer, ensure the purchase agreement specifically addresses the existing tenancies. The agreement should clearly state whether the property is being sold with tenants in place and include contingencies related to the tenancies. In New Hampshire, the buyer will typically assume all rights and responsibilities as the new landlord unless otherwise negotiated.
Prepare Assignment of Leases
32 days after startingIf selling with tenants in place, draft an assignment of leases to transfer all landlord rights and obligations to the new owner. This document should list all current leases being transferred, affirm they are in good standing, and outline the effective date of transfer. While leases automatically transfer with property ownership in New Hampshire, this document provides clarity for all parties.
Create Security Deposit Transfer Agreement
34 days after startingNew Hampshire law (RSA 540-A:6) requires security deposits to be transferred to the new owner. This agreement should document all security deposits being transferred, including amounts, associated tenants, and accrued interest. The new owner must provide written notice to tenants within 20 days of the transfer, confirming receipt of their security deposits.
Notify Tenants of New Ownership
40 days after startingAfter the sale closes, ensure tenants are properly notified of the change in ownership. While not explicitly required by New Hampshire law, this notice should provide the new owner's name, contact information, and instructions for rent payment. This communication helps ensure a smooth transition and prevents confusion about where to send rent payments.
Complete Final Accounting
42 days after startingIf you've collected last month's rent or other prepaid amounts, ensure these are properly accounted for and transferred to the new owner. Document all financial transfers related to the tenancies to avoid future disputes. In New Hampshire, failure to properly account for and transfer tenant funds could result in legal liability.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Review Lease Agreement | Carefully review all current lease agreements to understand tenant rights, lease terms, and any provisions related to property sale. Pay special attention to lease duration, renewal options, and any clauses that might affect your ability to sell the property. In New Hampshire, written leases remain binding even when ownership changes, so understanding these agreements is crucial. | - | 1 |
| Determine Tenant Rights Under New Hampshire Law | Research New Hampshire landlord-tenant laws regarding property sales. In New Hampshire, tenants with a valid lease generally have the right to remain in the property until their lease expires, even after the sale. Month-to-month tenants must receive proper notice (typically 30 days) before being required to vacate. Understanding these rights will help you navigate the sale process legally and ethically. | - | 3 |
| Prepare Notice to Tenants of Intent to Sell | While New Hampshire law doesn't specifically require notifying tenants of your intent to sell, providing written notice is a professional courtesy and helps maintain good relations. This notice should inform tenants of your plans to sell, explain how showings will be handled, and reassure them about their rights. Remember that you must still provide reasonable notice (at least 24 hours) before entering the property for showings. | Notice to Tenants of Intent to Sell | 5 |
| Create Property Disclosure Statement | New Hampshire law (RSA 477:4-c) requires sellers to disclose certain information about the property's condition. With rental property, be sure to include information about the current tenancies, any ongoing maintenance issues, and the condition of tenant-occupied areas. This disclosure must be provided to potential buyers before they make an offer. | Property Disclosure Statement | 7 |
| Request Estoppel Certificate from Tenants | An estoppel certificate confirms the terms of the lease, current rent, security deposit amounts, and that the tenant has no claims against the landlord. While not legally required in New Hampshire, this document protects both the seller and buyer by documenting the current status of all tenancies. Request this from each tenant, giving them reasonable time to complete it. | Estoppel Certificate | 10 |
| Prepare Rent Roll | Create a comprehensive rent roll documenting all current tenancies, including tenant names, unit numbers, monthly rent amounts, security deposits held, lease start and end dates, and any outstanding issues. This document will be essential for potential buyers to understand the rental income and tenant situation. | Rent Roll | 12 |
| Determine Selling Strategy | Decide whether to sell the property with tenants in place or vacant. In New Hampshire, you have several options: 1) Sell with tenants in place (new owner becomes the landlord), 2) Wait until leases expire naturally, 3) Negotiate early termination with tenants, or 4) Sell to the tenants themselves. Each approach has different legal and financial implications that should be carefully considered. | - | 14 |
| Consider Early Lease Termination Agreement | If you decide to sell the property vacant, and tenants have time remaining on their leases, you may need to negotiate early termination. In New Hampshire, you cannot unilaterally terminate a lease just to sell the property. This agreement should outline compensation for the tenant, moving timeline, and release of further obligations. Be aware that tenants are not obligated to accept early termination. | Early Lease Termination Agreement | 17 |
| Draft Cash for Keys Agreement | As an alternative to waiting for lease expiration, consider offering financial incentives for tenants to vacate early. This agreement should clearly state the amount offered, move-out date, property condition requirements, and that acceptance releases the tenant from further lease obligations. This approach is completely voluntary for tenants but can be mutually beneficial. | Cash for Keys Agreement | 20 |
| Prepare for Property Showings | Under New Hampshire law (RSA 540-A:3), landlords must provide at least 24 hours' notice before entering a tenant's unit for showings. Create a system for scheduling and notifying tenants about showings that respects their rights while facilitating the sale process. Consider offering incentives for tenants who maintain the property well during showings. | - | 22 |
| Draft Real Estate Purchase Agreement | When you find a buyer, ensure the purchase agreement specifically addresses the existing tenancies. The agreement should clearly state whether the property is being sold with tenants in place and include contingencies related to the tenancies. In New Hampshire, the buyer will typically assume all rights and responsibilities as the new landlord unless otherwise negotiated. | Real Estate Purchase Agreement | 30 |
| Prepare Assignment of Leases | If selling with tenants in place, draft an assignment of leases to transfer all landlord rights and obligations to the new owner. This document should list all current leases being transferred, affirm they are in good standing, and outline the effective date of transfer. While leases automatically transfer with property ownership in New Hampshire, this document provides clarity for all parties. | Assignment of Leases | 32 |
| Create Security Deposit Transfer Agreement | New Hampshire law (RSA 540-A:6) requires security deposits to be transferred to the new owner. This agreement should document all security deposits being transferred, including amounts, associated tenants, and accrued interest. The new owner must provide written notice to tenants within 20 days of the transfer, confirming receipt of their security deposits. | Security Deposit Transfer Agreement | 34 |
| Notify Tenants of New Ownership | After the sale closes, ensure tenants are properly notified of the change in ownership. While not explicitly required by New Hampshire law, this notice should provide the new owner's name, contact information, and instructions for rent payment. This communication helps ensure a smooth transition and prevents confusion about where to send rent payments. | - | 40 |
| Complete Final Accounting | If you've collected last month's rent or other prepaid amounts, ensure these are properly accounted for and transferred to the new owner. Document all financial transfers related to the tenancies to avoid future disputes. In New Hampshire, failure to properly account for and transfer tenant funds could result in legal liability. | - | 42 |
Frequently Asked Questions
Yes, you can sell your house in New Hampshire even if you have tenants living in it. The property can be transferred to a new owner with the existing lease intact. The tenants' rights under their current lease agreement remain protected, and the new owner becomes the new landlord who must honor the existing lease terms.
While New Hampshire law doesn't specifically require you to notify tenants of your intent to sell, it's considered best practice to provide written notice. This helps maintain good relations and can make the selling process smoother. You should, however, provide proper notice before showing the property to potential buyers, typically 24 hours' advance notice as a reasonable courtesy.
In New Hampshire, you cannot evict tenants simply because you want to sell the property. You can only evict tenants for legally valid reasons such as non-payment of rent, violation of lease terms, or at the end of their lease period. If tenants have a fixed-term lease, they have the right to stay until the lease expires, regardless of the sale.
When selling a rental property in New Hampshire, you must either transfer the security deposits to the new owner or return them to the tenants. If transferred to the new owner, you must notify tenants in writing about the transfer, including the new owner's name and contact information. The new owner becomes responsible for the security deposits and must handle them according to New Hampshire law.
If tenants have a fixed-term lease, the new owner cannot raise the rent until the lease expires. For month-to-month tenancies in New Hampshire, the new owner can increase the rent with proper notice (typically 30 days). However, any rent increase must not be discriminatory or retaliatory and should be reasonable according to market standards.
Yes, you should provide copies of all current lease agreements to potential buyers as part of your disclosure documents. This ensures the buyer understands the existing tenancy obligations they'll be assuming. In New Hampshire, lease agreements run with the land, meaning they transfer with the property, and the new owner must honor their terms.
In New Hampshire, landlords have the right to show the property to prospective buyers, but must provide reasonable notice to tenants (typically 24 hours). You should work with your tenants to establish a showing schedule that minimizes disruption to their lives. Consider offering incentives like reduced rent during the showing period to encourage cooperation.
If tenants unreasonably refuse access for showings despite proper notice, this could potentially constitute a lease violation. However, before taking any legal action, try to understand their concerns and work toward a compromise. If necessary, consult with a New Hampshire real estate attorney about your specific situation, as tenant cooperation can significantly impact your ability to sell the property.
Yes, you can offer tenants financial incentives to vacate early, commonly known as 'cash for keys.' This might include returning their full security deposit regardless of condition, paying moving expenses, or offering a lump sum payment. Any such agreement should be documented in writing and signed by both parties to avoid future disputes.
With month-to-month tenants in New Hampshire, you have more flexibility. You can provide the legally required notice to terminate the tenancy (typically 30 days' written notice) without stating a reason. This allows you to sell the property vacant if desired. Alternatively, you can sell with the tenants in place, informing buyers that the tenants are on month-to-month agreements that can be terminated with proper notice after the sale.