Nothing has to change for the tenant

The lease is an interest in the property, so it continues past the closing date on the same terms. The tenant keeps the same rent, the same end date, and the same rights. At closing the leases are assigned, the deposits are transferred, and rent is prorated for the month.

For a landlord this removes the two hardest parts of selling an occupied rental conventionally: coordinating showings around a tenant's life, and timing a vacancy so the property shows well.

The deposit is transferred, not refunded

Texas law is specific here. On a sale the security deposit goes to the new owner, and the new owner is liable to the tenant for it. The selling landlord's liability ends once it has been delivered and the tenant notified. Do not return deposits at closing or treat them as sale proceeds.

Bring the ledger. Deposits, pet deposits, prepaid rent, and any credits need to reconcile, and a clean accounting is what keeps a deposit dispute from following you after you no longer own the house.

No showings, which tenants notice

Texas does not set a statutory minimum notice for landlord entry — the lease governs — but repeated showings are still the fastest way to damage a tenant relationship, and a tenant who feels pushed around can make a conventional sale considerably harder.

We do not need showings, open houses, or interior photographs of occupied rooms. Usually one walkthrough is enough, scheduled when it suits the tenant.

Documents worth gathering now

  • The signed lease and every amendment or renewal
  • A current rent ledger showing payments and any arrears
  • Deposit records and where the funds are held
  • Any notices given to the tenant, and any filed eviction case
  • Section 8 or housing-authority paperwork if the tenancy is subsidized
  • Utility account information and who pays what

Frequently asked questions

Can you sell a house with tenants in Texas?

Yes. The lease survives the sale and the buyer takes the property subject to it. No eviction is required.

Who holds the security deposit after the sale?

The buyer. Texas law requires the deposit to be transferred to the new owner, who becomes liable to the tenant for it.

Does my tenant have to let a buyer inside?

Entry is governed by the lease. We keep it to a single walkthrough scheduled around the tenant, and we do not need showings.

Can I sell in the middle of a fixed-term lease?

Yes. The term runs to its end date with the new owner as landlord.

What if my tenant is month-to-month?

You can still sell. Ending a month-to-month tenancy in Texas generally takes at least one month's notice, but that is the buyer's decision after closing, not a prerequisite to the sale.

This page is general information about selling property in Texas, not legal, tax, or financial advice. Laws change and every situation is different, so talk with a qualified Texas professional about yours.