Rental Homes That Are FOR SALE - what it means to you
I am often asked about vacation rental homes that are for sale, what if they are rented far in advance then it's sold to a new owner. What happens to the renter? Are they kicked out, do they loose their deposit? The quick answer is NO.
North Carolina has a law to protect people who rent a vacation rental home. The law is called the Vacation Rental Act (chapter 42a of the NC general statutes) and basically it says that a new owner of a property, that is being used as a vacation rental, must honor all reservations for 180 days. Here is an example - An oceanfront home is sold to a new owner on March 1 and there are prebooked rentals for May through September of that year. The law says the owner must honor those reservations for 180 days from the closing, so any reservations from March until August 1 (180 days) must be honored. Those made for September could be canceled by the new owner and the rental company would then have to move you or refund your money. A house sold in May would have to honor all rentals to October.
Luckily the people who buy vacation rental homes and condos do so because they are interested in making as much money as possible from renting them each week. Most buy because the house has rental history and because they have some prebooked weeks reserved and the last thing on their minds is giving you back money they could have gotten from your rental week. The main selling season here on the Outer Banks is between February and May. The 180 days will most often cover most renters through the summer months because the closings will likely be April to June which will protect a renter until almost November.
What about people showing the house while you are renting it? Realtors are suppose to not bother a renter while they are in the house for their rental period. I get dozens of calls from agents wishing to show these vacation homes during the summer. Unless the house is vacant that week or unless the renter, in the house, gives their permission the agent can not show it. OH they might try to but as the renter that week you are the "owner" and you can say no. Normally we just show the homes during the change over on Saturday or Sunday before 1-2pm when the next renter gets in the house so we don't bother the renters at all.
Tim Moore
sales mgr
Joe Lamb Realty
North Carolina has a law to protect people who rent a vacation rental home. The law is called the Vacation Rental Act (chapter 42a of the NC general statutes) and basically it says that a new owner of a property, that is being used as a vacation rental, must honor all reservations for 180 days. Here is an example - An oceanfront home is sold to a new owner on March 1 and there are prebooked rentals for May through September of that year. The law says the owner must honor those reservations for 180 days from the closing, so any reservations from March until August 1 (180 days) must be honored. Those made for September could be canceled by the new owner and the rental company would then have to move you or refund your money. A house sold in May would have to honor all rentals to October.
Luckily the people who buy vacation rental homes and condos do so because they are interested in making as much money as possible from renting them each week. Most buy because the house has rental history and because they have some prebooked weeks reserved and the last thing on their minds is giving you back money they could have gotten from your rental week. The main selling season here on the Outer Banks is between February and May. The 180 days will most often cover most renters through the summer months because the closings will likely be April to June which will protect a renter until almost November.
What about people showing the house while you are renting it? Realtors are suppose to not bother a renter while they are in the house for their rental period. I get dozens of calls from agents wishing to show these vacation homes during the summer. Unless the house is vacant that week or unless the renter, in the house, gives their permission the agent can not show it. OH they might try to but as the renter that week you are the "owner" and you can say no. Normally we just show the homes during the change over on Saturday or Sunday before 1-2pm when the next renter gets in the house so we don't bother the renters at all.
Tim Moore
sales mgr
Joe Lamb Realty
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