Landlord
The owner of a rental property, or the person acting for the owner. Landlords are responsible for meeting habitability laws and honoring the lease.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.Part 1 of 4
Why a seller cares
Selling a rental means you are the landlord until closing, with a landlord's duties: notice before showings, the tenant's deposit to hand over, and habitability to keep up. After closing, the buyer is the landlord and the tenant's deposit goes with them.
Part 2 of 4
A simple example
You sell an occupied rental. At closing the tenant's $1,500 deposit transfers to the buyer, and the tenant is told in writing who their new landlord is.
| What transfers at closing | To whom |
|---|---|
| The lease | The buyer, as the new landlord |
| The security deposit | The buyer, with a credit on the settlement statement |
| Prepaid rent for the month | Prorated to the buyer |
The landlord's chair changes hands at closing, with the lease and the deposit in it.
Part 3 of 4
What people get wrong
That the deposit is the seller's to keep. It is the tenant's money, and it follows the property to the new owner.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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