Does a lease survive the sale of a mobile home in Texas?

Yes. Under Texas Property Code Chapter 92, a valid written lease runs with the property, not the landlord. When ownership transfers, the new owner steps into the landlord's shoes and must honor the remaining lease term. Month-to-month tenancies can be terminated with proper notice (30 days in Texas), but fixed-term leases must be honored through their end date.

Do I need tenant permission to sell my rental mobile home?

No. You can sell the home without tenant approval. However, Texas Property Code requires reasonable notice (typically 24 hours) before showings or inspections, and the tenant has the right to quiet enjoyment. Many sellers structure sales to avoid showings by marketing directly to investor buyers who purchase based on rental income, not physical inspection.

What happens to the security deposit when I sell?

Under Texas Property Code Section 92.105, the security deposit must be transferred to the new owner at closing, and both seller and buyer remain jointly liable to the tenant until the deposit is returned or lawfully applied. Best practice is a written deposit transfer document at closing with the buyer acknowledging receipt and assuming the obligation.

Can I sell a mobile home to an investor who just wants the rental income?

Yes, and this is often the fastest way to sell a tenant-occupied mobile home in Texas. Investor buyers value cash flow and typically don't require physical showings or appraisals. A double-wide renting for $1,200 a month with a good-paying tenant can sell for a 10 to 18 percent cash-on-cash yield depending on the market and park lot rent.

Will the park approve a new investor owner?

Most Texas manufactured home communities require park approval for new owners, even non-occupant investor owners. Park rules vary: some approve experienced investors routinely, others require the new owner to also live in the home. Check your park lease and community rules before marketing the home, and confirm investor-ownership is allowed.

Selling a Mobile Home with Tenants in Place: Texas Landlord Options

You can sell a tenant-occupied mobile home in Texas without ending the lease — under Texas Property Code Chapter 92, the lease runs with the home, and the buyer steps into your landlord role. The fastest path is marketing the home as a turnkey rental to investor buyers who value cash flow over physical showings. You'll need to transfer the security deposit, provide tenant notice, and (if the home is in a park) get the park's approval of the new investor owner.

Not every mobile home sale involves an empty house. Plenty of Texas mobile home owners rent out single-wides and double-wides for steady cash flow, then want to exit when they retire, move, or consolidate their portfolio. Selling with tenants in place is often smoother than evicting first and selling vacant — but only if you know how Texas landlord-tenant law applies to mobile homes. Here's the playbook.

Does the lease survive the sale?

Yes. Under Texas Property Code Chapter 92, a residential lease is attached to the property. When you sell the home, the buyer inherits:

The remaining lease term and all its provisions
The tenant's right to quiet enjoyment
The security deposit obligation (transferred at closing)
Any unresolved repair obligations from the tenant's prior requests

This is true for fixed-term leases (6 months, 1 year, etc.) and month-to-month tenancies. A fixed-term lease must be honored through its end date. A month-to-month can be terminated by the new owner with proper 30-day notice, but only after closing.

Chapter 92 vs Chapter 94: two separate statutes

Texas has two different landlord-tenant chapters that both apply to mobile homes depending on what's being rented:

Chapter 92 (residential dwelling lease): Applies when you rent the mobile home itself to a tenant (they pay rent for the home). Governs security deposits, repair duties, eviction process.
Chapter 94 (manufactured home community): Applies when a park owner rents the lot to a home owner. Governs park-lot leases, notices, park rules.

If you own the mobile home and rent it out in a park, both chapters are in play: Chapter 92 between you and your tenant, Chapter 94 between you and the park. Your sale has to satisfy both.

How do I market a tenant-occupied mobile home?

Tenant-occupied homes rarely sell well to owner-occupant buyers — they can't move in without waiting for the lease to end or paying the tenant to leave. Your ideal buyer is an investor looking for rental cash flow. Here's how to position it.

Package the deal as a turnkey rental

Current lease copy — redacted tenant SSN/DOB
12-month rent roll — what they paid and when
Tenant payment history — late fees, NSF bounces, on-time record
Lot rent statement if in a park — current amount, escalation clauses
Expense summary — insurance, maintenance, vacancy costs
Cash-on-cash yield calculation at your asking price

Investors underwrite on numbers. A double-wide renting for $1,200/month with $400 lot rent, $50/month insurance, and $150/month reserves throws off about $600/month in net operating income — roughly $7,200/year. At a $55,000 asking price, that's a 13% cash-on-cash yield, which makes the phone ring.

Price it accordingly

Rental-occupied homes often sell at a discount to owner-occupant comps because the buyer pool is smaller. Expect 5–15% below vacant-home pricing, depending on lease strength. A tenant with 8 months left on a rock-solid lease is a premium; a month-to-month with sporadic payment is a discount. Our mobile home pricing guide covers the full valuation framework.

This is general information, not legal or tax advice — consult a Texas probate attorney, family lawyer, or CPA for your specific situation.

What notice do I owe the tenant?

Texas Property Code doesn't require landlords to notify tenants of a sale in advance, but you have several practical and legal reasons to do so:

Showings: Even for investor buyers who sometimes skip showings, any physical visit requires Chapter 92 reasonable notice (typically 24 hours).
Security deposit transfer: Best practice is a written notice to the tenant that the deposit has been transferred to the new owner.
New landlord contact info: Texas law requires landlords to provide tenants with owner or manager name and address within 7 days of a change in ownership or management.
Where to pay rent: The tenant needs to know where to send the next month's check.

Give tenants a heads-up once you have a signed contract. Being transparent usually gets you cooperation on showings and minimizes tenant anxiety (which can result in early move-outs that kill the deal).

How does the security deposit transfer work?

Texas Property Code §92.105 says the security deposit stays with the property, not the seller. At closing:

Seller credits the buyer for the full deposit amount on the closing statement
Buyer signs a written acknowledgment accepting the deposit transfer and assuming all Chapter 92 deposit obligations
Seller provides tenant written notice that deposit was transferred (certified mail or hand-delivered with receipt)
Seller keeps the closing statement and tenant notice forever — Texas tenants can sue the seller up to four years later if the deposit disappears

Skipping step 4 is how sellers get sued in small-claims court a year after closing. Document everything.

What about the park's approval of the investor buyer?

If the home sits in a Texas manufactured home community, the park typically requires approval of any new owner — even an investor who won't live there. This is often the biggest hurdle in a tenant-occupied sale.

Common park rules

Rule	Impact on investor sale
Owner-occupancy required	Kills most investor sales unless park grants an exception
Investor-ownership allowed with registration	Smooth — investor just needs to register as absentee owner
Cap on absentee-owned homes	If cap is full, investor can't buy in — check availability first
Rental fee or absentee-owner surcharge	Reduces investor yield — disclose upfront
Park has first right of refusal	Park can buy the home at any third-party offer price

Pull your park community rules before you list. If the park prohibits investor owners, you may need to ask the tenant to leave and sell vacant — or sell to an owner-occupant with the tenancy ending at closing. The park-sale guide covers the full park approval process.

What if my tenant stops paying once they hear about the sale?

This happens occasionally — tenants figure a sale is disruptive and stop paying, either trying to force a buyout or angling for a free month. You have the same eviction rights under Chapter 92 that you had before:

Serve a 3-day notice to vacate for non-payment (Texas Property Code §24.005)
File a forcible detainer suit in JP court
Hearing typically within 10–21 days
Writ of possession issued 5 days after judgment

If you're mid-contract on a sale when this happens, talk to the buyer. Many investor buyers will still close and handle the eviction themselves because they're getting a vacant home at the rental-occupied price. Others will bail. Being transparent with buyers about tenant-risk protects you from misrepresentation claims. Our eviction guide covers the full process.

What trips landlord-sellers up most often?

Not transferring the security deposit in writing: Tenants sue sellers personally when the new owner won't return the deposit. Document the transfer at closing.
Promising the tenant will leave before closing: Texas landlords can't force out a fixed-term tenant just because they want to sell vacant. Honor the lease or negotiate a cash-for-keys agreement.
Ignoring park approval rules: Contract contingencies should include park approval of the buyer. Otherwise you might lose the buyer and still owe the buyer's deposit back.
Disclosing tenant PII in marketing: Redact the tenant's name, SSN, DOB, and income from any leases or rent rolls you share with prospective buyers.
Treating Chapter 94 notices as satisfying Chapter 92: Park notices (Chapter 94) don't substitute for landlord-tenant notices (Chapter 92) to your actual renter. They're separate relationships.

Frequently Asked Questions

Does a lease survive the sale of a mobile home in Texas?: Yes. Under Texas Property Code Chapter 92, a valid written lease runs with the property, not the landlord. When ownership transfers, the new owner steps into the landlord's shoes and must honor the remaining lease term. Month-to-month tenancies can be terminated with proper notice (30 days in Texas), but fixed-term leases must be honored through their end date.
Do I need tenant permission to sell my rental mobile home?: No. You can sell the home without tenant approval. However, Texas Property Code requires reasonable notice (typically 24 hours) before showings or inspections, and the tenant has the right to quiet enjoyment. Many sellers structure sales to avoid showings by marketing directly to investor buyers who purchase based on rental income, not physical inspection.
What happens to the security deposit when I sell?: Under Texas Property Code Section 92.105, the security deposit must be transferred to the new owner at closing, and both seller and buyer remain jointly liable to the tenant until the deposit is returned or lawfully applied. Best practice is a written deposit transfer document at closing with the buyer acknowledging receipt and assuming the obligation.
Can I sell a mobile home to an investor who just wants the rental income?: Yes, and this is often the fastest way to sell a tenant-occupied mobile home in Texas. Investor buyers value cash flow and typically don't require physical showings or appraisals. A double-wide renting for $1,200 a month with a good-paying tenant can sell for a 10 to 18 percent cash-on-cash yield depending on the market and park lot rent.
Will the park approve a new investor owner?: Most Texas manufactured home communities require park approval for new owners, even non-occupant investor owners. Park rules vary: some approve experienced investors routinely, others require the new owner to also live in the home. Check your park lease and community rules before marketing the home, and confirm investor-ownership is allowed.

Disclaimer: This article is provided for general informational and educational purposes only. Mobile Bye Bye is a TDHCA-licensed manufactured home brokerage — we are not attorneys, accountants, tax advisors, or financial advisors, and nothing in this article constitutes legal, tax, or financial advice. Title transfer requirements, tax law, probate procedures, park regulations, and state statutes change frequently and apply differently to every situation. Before making any decision involving legal paperwork, taxes, title transfers, estate matters, or financial commitments, consult a licensed Texas attorney, CPA, or qualified financial advisor.

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Selling a Mobile Home with Tenants in Place in Texas