For real estate investors in New Hanover, Pender, and Brunswick counties, selling a rental property involves more than just pricing and staging. It involves a third party who has a key to the front door: The Tenant.

Whether you are selling a long-term rental in Leland or a vacation beach house on Topsail Island, the tenant’s lease doesn't just disappear when you put a "For Sale" sign in the yard. In North Carolina, specific laws dictate what you can and cannot do.

Navigating this correctly is the difference between a smooth closing and a lawsuit. Here is your guide to selling a tenant-occupied property in the Cape Fear region.

1. The Golden Rule: Leases "Run with the Land"

The most common misconception sellers have is, "I'll just tell the tenant to move out so I can sell it."

The Reality: In North Carolina, a lease generally survives the sale. If your tenant has a lease that expires in December, and you sell the house in June, the buyer must inherit that tenant and that lease. You cannot kick them out just because you want to sell.

The Exception: Month-to-month leases. If your tenant is on a month-to-month agreement, you typically only need to give them a 7-day notice (though we highly recommend 30–60 days as a professional courtesy) to vacate before closing.

2. The "Vacation Rental Act" Curveball

If you are selling a short-term rental (Airbnb/VRBO) in Carolina Beach or Wrightsville Beach, you are governed by the NC Vacation Rental Act. This law has a very specific "180-Day Rule" that protects future bookings.

The Rule: If a vacation rental agreement ends within 180 days of the recording of the sale deed, the new owner must honor that booking.

The Cutoff: If a booking is scheduled for more than 180 days after closing, the new owner is not legally required to honor it (though many do to keep the income flowing). In that case, the tenant is entitled to a full refund.

Disclosure: You are legally required to disclose all future bookings to the buyer before the contract is signed.

3. Cooperation is Currency: Managing Showings

A tenant who feels disrespected can ruin a sale by leaving the house messy or refusing to leave during showings.

The Strategy: You need the tenant on your team. We often recommend incentivizing cooperation. Offering a rent discount for the listing month, or paying for a weekly cleaning service, can turn a disgruntled tenant into a helpful partner who keeps the place "show-ready."

24-Hour Rule: While NC law is vague on exact notice for entry, the standard professional practice is to provide at least 24 hours' notice before any showing.

4. The "Cash for Keys" Option

If you absolutely need the home vacant to sell it (perhaps to a primary resident buyer), you can negotiate a "Cash for Keys" agreement.

How it works: This is a voluntary agreement where you pay the tenant a lump sum (often moving expenses plus one month's rent) to terminate the lease early and vacate the property in good condition.

Why do it: It eliminates the "tenant risk" for the buyer and opens your property up to the widest possible pool of purchasers.

The Bottom Line

Selling a rental property is a business transaction that requires a delicate human touch. You need to balance your right to sell with the tenant's right to "quiet enjoyment."

At Aspyre Realty Group, we specialize in these complex transactions. We know how to structure contracts that protect you from the Vacation Rental Act liabilities and how to communicate with tenants to ensure a seamless handover.