How long can a seller rent back their home?

A rent-back period is negotiable. However, they almost never exceed 60 days. If it's longer, the buyer might complicate their home loan with their lender.

How much is rent in a rent-back agreement?

This is negotiated by the buyer and the seller. It often reflects what the buyer will pay monthly on their mortgage. The buyer could also forgo collecting rent and opt for a lower price on the home purchase.

Are there tax consequences for rent-back agreements?

Buyers need to declare any rental income on their taxes that year as 'Other Income.' Importantly, this is different from what typical landlords do, which is use a Form Schedule E 'Income and Loss from Rental Real Estate.' BUT using this form for rent-back agreements could complicate your taxes.

Jessica Johansen

Content Project Manager

Jessica Johansen has been part of Clever's editorial team for three years. She has extensive knowledge of discount brokers, cash buyers, and flat fee MLS companies and currently oversees content on how to sell without a realtor. For four years before Clever, Jessica produced educational and technical guides covering topics like self-reliance and airline safety.

Expertise: Traditional home selling, selling without a realtor

Education: BA English Language, Brigham Young University

Featured Published Articles

A rent-back agreement allows a seller to delay moving up to 60 days while paying rent to the buyer. Here's how this can help the seller AND the buyer.
Many real estate offers and contracts come with contingencies. Here's how to navigate the most common ones to get the best deal.
How accurate is the Chase home value estimator? Learn more about the quality of the chase home value estimate, and see how it measures up to Zillow and Redfin.
72SOLD helps you sell your house fast to the highest bidder in 72 hours, but does it actually work? Read reviews, see costs, and find out how it works.
Worried that a past eviction could prevent you from buying a house? Find out how evictions impact your credit report and how to handle them when home buying.
It’s a myth that buying a house in your later years is always a bad move. Find out if buying a house at 65-years-old or older is right for you.