How to handle back rents

I have a property that a tenant owes me money for a back rent. I am in the middle of selling this property. Who is the back rent money paid too after the home is sold?

Note: (The tenant has been making good on her monthly payments ever since and will stay in the home when it is sold.




All things are negotiable in contracts, so you can get whatever you can get the other party to agree to in the contract.

However, in most situations, if the property is sold, then all rents due are then payable to the new landlord, so the new owner would be responsible for collecting the back rent.

I have a very similiar case where the tenant was currently paying on time, but still had back rent, late. When I sold it, I “forgave” the back rent, so she was current to the new landlord. This is good for both parties. The new landlord doesn’t have to worry over back rent, and the tenant gets a fresh start with a new landlord.


Did tenant have a security deposit? If so I would make the contract state that you received that and that new landlord is responsible for collecting new!


Is that a pretty standard clause in rental contracts in general? Because the tenant would be required to come up with an additional rental deposit with the change of ownership to a new landlord.

(I am not very familar with rental contracts).

Again, thanks,


Read the rental contract there should be an area in there that talks about it being a transferable contract Chances are the lease is non-transferable anyway so you should be able to keep the deposit for back rent!

Also there should be another area in there that states deposit to be used for rents or damage!

But like always I will tell you I am not an attorney (nor do I want to be one LOL)

You can do whatever you and the buyer agree to.

When a business is sold, if there are open accounts receivable balances due then:

The new owner can purchase them at a percentage of the cost.
The new owner can collect the payments and forward them with or without charging you a administrative fee.
The accounts can pay the old balances directly to you.
It can work the same for rent due.
It’s whatever you and the buyer agree to. Technically, it’s your money.