Can I rent back my home after selling?
Want to sell your house but still live there after closing? Here’s the straight answer: yes — you can often rent back your home after selling, but it takes planning, proper contracts, and the right negotiation. Read this if you want to sell now and stay later without drama.
Quick answer
Yes. The tool is called a sale-leaseback or seller rent-back. It lets the seller become a short-term tenant after closing. Common lengths: 30–90 days. Longer terms are possible but need careful structuring.
What a sale-leaseback means
A sale-leaseback is a post-closing occupancy agreement. The buyer closes the sale and the seller signs a lease to occupy the property for a set time. It’s legally binding. It protects both sides and defines rent, deposits, move-out dates, and penalties.
How it works — step by step
- Ask before you list: Put a rent-back clause in offers so buyers know you might stay after closing. Buyers respond better when expectations are clear.
- Negotiate rent: Most sellers pay market rent or a small premium. Sometimes you’ll see a daily or monthly fee tied to the final purchase price. Get the number in writing.
- Set the term and penalties: Typical terms are 30–90 days. Add late fees or daily occupancy charges if you overstay.
- Deposit and insurance: Buyers usually require a security deposit and proof of renter liability insurance. Keep utilities and maintenance responsibilities clear.
- Sign a post-closing occupancy agreement: This becomes part of the closing docs. Have a real estate lawyer or experienced agent review it.
Pricing, risks, and common clauses
- Rent: Expect market rent. In hot markets buyers may ask for slightly higher rent.
- Security deposit: Commonly one month’s rent.
- Liability and insurance: Sellers must carry renter liability insurance. Buyers should confirm coverage.
- Lender issues: Some mortgage rules restrict occupant type. Buyers using certain loans may face limits — always notify the lender.
- Default protection: Buyers insert eviction and late-fee clauses to protect against holdovers.
Negotiation tips that win
- Offer flexibility: Short-term lease (30–60 days) at fair market rent closes deals faster.
- Offer a small rent credit or reduced price to secure a longer stay. Buyers like certainty.
- Be transparent about move-out timing. Surprises kill deals.
Legal and tax notes
- Document everything. Oral agreements are weak.
- Check local landlord-tenant laws — they apply once you become a tenant.
- Consult a lawyer about tax or capital gains timing if the arrangement is complex.
Bottom line
Yes — you can rent back your home after selling. Do it smart: agree in writing, set clear terms, and confirm lender and insurance conditions. This protects your move timeline and the buyer’s investment.
Ready to sell and stay without the stress? I specialize in sale-leaseback moves and transition plans. Email tony@sousasells.ca or call 416-477-2620 to structure a clean rent-back that works for both sides. Visit https://www.sousasells.ca for details and client success stories.
