Short answer
A sale alone doesn't end a tenancy; ending one takes the steps NH law sets out. You take over as landlord, and the seller must hand the security deposits to you at closing or within 5 days and tell each tenant in writing who holds them. Whether and how you can end a tenancy depends on New Hampshire's eviction law, the type of property, and any lease in place, so plan this before you sign a contract.
What should I ask for before I make an offer?
- Copies of every lease and any written rental agreements.
- A rent roll showing each unit's rent, due date, deposit held and any unpaid rent.
- Whether any tenant has been given notice, or any dispute is pending.
- Whether you plan to live in a unit, and which one. If you need a unit empty by closing, put that in the purchase contract.
The lender may also use the leases to count rental income; see the multi-family guide.
What happens to the security deposits?
Under RSA 540-A:6, the seller must turn each deposit, plus any interest owed, over to you when the deed is delivered or within 5 days after, and must notify the tenant by registered or certified mail with your name and address. Once that's done, you are the one responsible for returning it when the tenancy ends. The same law caps a deposit at one month's rent or $100, whichever is greater, and requires interest on a deposit held for a year or more. Make sure the deposits show on your closing statement.
Can I end a tenancy after I buy?
It depends on the property. New Hampshire splits rentals into two groups (RSA 540:1-a):
- Non-restricted: units in an owner-occupied building with 4 or fewer units, and single-family houses when the owner has no more than 3. Here a landlord can end a tenancy with proper written notice to quit.
- Restricted: most other residential rentals. Here a tenancy can end only for reasons the law lists, such as nonpayment, lease violations, other good cause, or a lease of 12 months or more expiring with at least 60 days' written notice.
A lease may also run past your closing date. Fair housing law and the rules against retaliation apply either way. An attorney can walk you through your situation before you count on a unit being empty.
What safety rules come with being a landlord?
NH law requires rental units to have working fire warning devices, and carbon monoxide detectors where there's an attached garage or fuel-burning equipment, and the owner must keep them in working order (RSA 153:10-a). Check them during your walk-through.
How does this affect my mortgage?
If you're buying with an owner-occupied loan, you must actually move in; your loan papers set the timing. Investor loans have their own rules. See how long you need to live in a home before renting it and the investment property guide.
Sources
- NH RSA 540-A:6, Security Deposits
- NH RSA 540:1-a, Definitions (restricted and non-restricted property)
- NH RSA 540:2, Termination of Tenancy
- NH RSA 153:10-a, Fire warning and carbon monoxide devices
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.