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By Randy Richardson, Broker Associate, The 4th Right Team
Quick Answer: You can sell a Mississippi rental with tenants in place, but the lease decides most of how it goes. In general, a sale doesn't end a valid lease, so the buyer takes over as landlord. Mississippi's landlord-tenant law sets no specific notice period for showings, so your lease's entry terms control. A month-to-month tenancy can be ended with 30 days' written notice. Owner-occupant buyers usually need to move in within 60 days on FHA loans, so a long lease can shrink your buyer pool to investors.
Can you sell a rental house in Mississippi with a tenant living in it?
Yes. Rentals sell with tenants in place all the time on the Coast, especially near Keesler and NCBC Gulfport. The question isn't whether you can. It's whether selling occupied or vacant gets you the better result.
Start with the lease. In general, a sale doesn't cancel a valid lease. The buyer steps into your shoes as landlord, and the tenant keeps the right to stay through the end of the term. If you want the house empty at closing, the lease has to end before then, or the tenant has to agree to leave.
Pull the lease out before you list. Note the end date, the rent, the deposit and any language about entry, showings, early termination or a sale. Those terms shape everything else.
How much notice do you have to give a tenant to show the house?
Mississippi's Residential Landlord and Tenant Act doesn't set a specific notice period for showings. The statute's landlord duties section covers repairs, codes and maintenance, not entry. So your lease's entry terms control.
If the lease says 24 hours' notice, give 24 hours. If it's silent, work out a schedule with the tenant in writing. Showings go better when the tenant cooperates, and a tenant who feels ambushed can make a house hard to sell. Some sellers offer a rent credit for each showing or a cleaning credit at move-out.
Ask for consent before you use photos of the tenant's belongings. Plan showings in blocks instead of one at a time. I explain how showing access affects a sale in my post on why a listing isn't getting showings.
Can you end a lease to sell the house vacant?
It depends on the lease type. Under Mississippi law, a month-to-month tenancy can be ended by either side with written notice at least 30 days before the termination date. A week-to-week tenancy takes at least seven days' written notice.
A fixed-term lease is different. Unless the lease has an early termination clause, you generally can't end it early just because you're selling. You can offer the tenant a cash-for-keys deal to move out early, in writing, if they're willing.
Timing matters on the Coast. If you're selling because of PCS orders, start the conversation with your tenant early. I cover the calendar side in my post on selling on PCS orders.
Who buys a rental with tenants in place?
Mostly investors. An investor likes a tenant who's paying on time, because the house earns rent from day one. Have a rent roll ready, along with the lease, the deposit amount and a record of what the tenant has paid.
Owner-occupant buyers are a harder fit. HUD's FHA guidance says the borrower must move in within 60 days of signing and live there at least a year. A buyer with a primary-residence loan usually can't close on a house with a lease that runs past that window.
That's the trade-off. Selling occupied keeps rent coming in but limits you to investors. Selling vacant opens the house to every buyer, but you carry the mortgage, taxes and insurance while it sits empty. Run both on your seller net sheet.
What happens to the tenant's security deposit when you sell?
It has to go somewhere, and it's not yours to keep. Mississippi law says a landlord must return the remaining deposit within 45 days after the tenancy ends. The same statute holds the landlord or a transferee liable if a deposit is wrongfully kept.
In practice, the deposit usually moves to the buyer at closing. Your closing attorney can credit it on the settlement statement, along with any prepaid rent. Then give the tenant written notice of who the new landlord is and where to send rent.
What about repairs, condition and disclosures?
Rentals take wear, and buyers notice. Walk the house with the tenant's permission before you list and make a repair plan. Safety and insurability items come first. I rank them in my post on pre-list repairs.
If you'd rather not fix much, you can sell it as-is and price it that way. Here's what as-is actually means in Mississippi. Your disclosure duties still apply.
Taxes are worth a call to your tax preparer. A rental sale can mean capital gains and depreciation recapture, and some investors use a 1031 exchange to defer taxes. That's a question for a tax professional before you list, not after.
By the Numbers
Written notice to end a month-to-month tenancy in Mississippi: at least 30 days
Written notice to end a week-to-week tenancy: at least 7 days
Deadline to return a tenant's remaining deposit after the tenancy ends: 45 days
Statutory notice period for showings in Mississippi's landlord-tenant act: none, the lease controls
FHA owner-occupancy requirement: move in within 60 days and live there at least one year
The Bottom Line
A tenant doesn't have to slow your sale down, but a surprise does. Read the lease, decide whether you're selling to investors or to everyone, and get the tenant on your side early. If you want to compare selling occupied vs. vacant, start with a home value evaluation. Then see how I sell homes on the Coast.
Frequently Asked Questions
Can I sell my rental house in Mississippi with a tenant in it?
Yes. In general, a sale doesn't end a valid lease, so the buyer takes over as landlord and the tenant can stay through the end of the term.
How much notice do I have to give a tenant for showings in Mississippi?
Mississippi's landlord-tenant act doesn't set a specific notice period for showings, so your lease controls. If the lease is silent, agree on a schedule with the tenant in writing.
How much notice do I need to end a month-to-month lease in Mississippi?
At least 30 days' written notice before the termination date. A week-to-week tenancy takes at least seven days' written notice.
What happens to the security deposit when I sell?
It usually transfers to the buyer at closing as a credit on the settlement statement. Mississippi law requires the remaining deposit to be returned within 45 days after the tenancy ends.
Will an owner-occupant buyer purchase a house with a tenant?
Usually not if the lease runs long. FHA requires the borrower to move in within 60 days of signing, so most owner-occupant buyers need the house vacant.
Sources
Mississippi Code § 89-8-19, Length of term of tenancy and notice to terminate, 2025 Code: https://law.justia.com/codes/mississippi/title-89/chapter-8/section-89-8-19/
Mississippi Code § 89-8-21, Tenant's security deposit, 2025 Code: https://law.justia.com/codes/mississippi/title-89/chapter-8/section-89-8-21/
Mississippi Code § 89-8-23, Duties of landlord, 2025 Code: https://law.justia.com/codes/mississippi/title-89/chapter-8/section-89-8-23/
Mississippi Residential Landlord and Tenant Act, chapter index, 2025 Code: https://law.justia.com/codes/mississippi/title-89/chapter-8/
HUD Handbook 4155.1, Chapter 4, Section B. FHA occupancy within 60 days and for at least one year: https://www.hud.gov/sites/documents/4155-1_4_secb.pdf
About the Author
Randy Richardson is a Broker Associate and Team Leader of The 4th Right Team at CENTURY 21 J. Carter & Company. He serves buyers and sellers across the Mississippi Gulf Coast.
Randy Richardson | Broker Associate
The 4th Right Team | Century 21 J. Carter & Company
📞 Office: (228) 731-3881 | Cell: (228) 547-9999
📧 realtorrandyrichardson@gmail.com
🌐 www.The4thRightTeam.com
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