Sell a rental property with tenants
Most landlords who want to sell a rental property with tenants are told they need to wait for the lease to end, or worse, evict first. Neither is usually true. An occupied rental is a normal thing to buy, and for an investor it is often more attractive than an empty one, because the income starts on day one rather than after a turnover.
Why owner-occupant buyers make this difficult
Someone buying a house to live in needs it empty at closing, which means either waiting out the lease or paying the tenant to leave. They also want to walk through it several times, and tenants are under no obligation to keep the place presentable for a sale they did not ask for. Marketing an occupied rental to owner-occupants creates friction for everybody, and it is the reason so many landlords believe they must go vacant first.
What to know
The lease survives the sale
In nearly every state, a valid lease runs with the property. A new owner steps into the existing agreement and inherits its terms. That is a feature here, not an obstacle, and it means your tenants are not put out on the street because you sold.
You do not have to evict first
Evictions are slow, expensive, and in many jurisdictions getting slower. If you have a non-paying tenant or an occupant you inherited with the property, that becomes our problem to work through after closing, not a prerequisite for you.
Security deposits transfer, and the accounting matters
Deposits are credited to the buyer at closing and the obligation to return them moves with the property. Most states have specific rules about how deposits are held and transferred, so have your ledger ready. This is routine but it is the item most often missing when a landlord sale slows down.
Bring the paperwork, not just the address
Current leases, the rent roll, deposit records, and any written notices already served. A landlord who has this ready gets a firm number quickly. A landlord who does not usually waits a week while it is reconstructed.
Depreciation recapture is the tax item people forget
Selling a rental you have depreciated for years can trigger depreciation recapture in addition to capital gains, and that surprises a lot of owners. A 1031 exchange may defer it if you intend to buy another investment property, but the timelines are strict and start at closing. Talk to your CPA before you sign anything, not after.
This is general information based on what we see in this situation regularly. It is not legal, tax, or financial advice, and the rules differ meaningfully from state to state. Talk to an attorney or a CPA about your specific circumstances.
How we handle this specifically
- We buy occupied, mid-lease, or with a tenant who has stopped paying. None of those reduce our interest.
- No showings that disturb your tenants. One walkthrough, arranged with proper notice.
- We take on any eviction or non-payment situation after closing, at our cost.
- If you are mid-1031 or need a specific closing date for tax reasons, we work to your calendar.
How selling to us actually works
Tell us about the house
The address and a rough sense of its condition is enough to start. You do not need photos, an appraisal, repair estimates, or anything cleaned up first.
About 2 minutes
We look at it properly
We pull comparable sales, check the condition ourselves, and work out what the house is actually worth to us. One walkthrough, at a time that suits you, and we pay for any inspection.
Usually within 24 to 48 hours
You decide, and you pick the date
We put the number in writing with no pressure and no expiry games. If you accept, a title company handles closing and you choose the date. If you decline, that is genuinely the end of it.
Close in about 1 to 3 weeks, or later if you prefer
Common questions
- Can I sell with tenants still living there?
- Yes. The lease transfers with the property and the tenants stay. Nothing about their tenancy has to change for the sale to close.
- What if my tenant has not paid rent in months?
- Still fine. Tell us where the situation stands and whether anything has been filed. We take it on after closing.
- Do I need to give my tenants notice that I am selling?
- Notice requirements vary by state and by lease. You will generally need to give proper notice before any walkthrough, and we schedule around that. Your lease and state law govern the specifics.
- Can you close around a 1031 exchange?
- Yes, but the deadlines are strict and start running at closing. Have your qualified intermediary lined up before we sign, and coordinate the date with your CPA.
Related situations
Vacant or unwanted house
Empty houses deteriorate faster and cost more to insure than people expect.
House needs major repairs
Roof, foundation, mold, or a renovation somebody started and never finished.
Relocating for work
A start date that will not move and a house that has not sold yet.
We handle this in every market we buy in
Find out what we would pay for your house
It takes about two minutes, there is no obligation, and there is never a fee. If we are not the right answer for your situation, we will tell you that too.