Can you sell a house with tenants living in it?
Yes. You can sell a rental house with tenants living in it, and you don't have to wait for the lease to end or ask the tenants to leave first. In general, the lease stays in place and the buyer becomes the new landlord.
Plenty of investors buy rentals that are already occupied. We do too. We buy houses with tenants in place, as-is, with no repairs and no cleaning.
Whether your tenants pay on time or owe months of rent, the first step is the same: find out what the house is worth to a buyer who's fine with tenants.
What happens to the lease when you sell?
In general, selling the house doesn't cancel the lease. The Texas State Law Library puts it simply: when a property changes ownership, the new owner is bound by the terms of the existing lease, unless the lease says it ends when the property is sold.
Security deposits have their own rules:
- Florida. Section 83.49(7) of the Florida Statutes says that when the rental property is sold, the security deposits and advance rent are transferred to the new owner, with an accounting for each tenant.
- Alabama. Under the Alabama Uniform Residential Landlord and Tenant Act, whoever holds the landlord's interest when the tenancy ends is bound by the deposit rules (section 35-9A-201). Ask your attorney how deposits should be handed over at closing.
- Texas. Ask your attorney or title company how the deposits and the lease should be handed over at closing.
Read your lease before you list or sign a contract. If anything is unclear, talk to a local attorney.
Showings, notice and tenants who won't cooperate
Selling a rental the traditional way usually means showings, and that's where many landlords get stuck. Some tenants keep the house spotless and let buyers in. Others don't.
State law gives landlords some right of access to show the house:
- Florida. Section 83.53 says a tenant may not unreasonably withhold consent for the landlord to show the unit to prospective purchasers. The law also says the landlord can't abuse the right of access or use it to harass the tenant.
- Alabama. Section 35-9A-303 lets the landlord show the unit to prospective purchasers and generally requires at least 2 days' notice before entering, except in an emergency.
- Texas. Access rules usually come from the lease, so check yours, and talk to a local attorney if a tenant refuses entry.
When you sell to us, there's no listing, no open house and no stream of buyers walking through your tenant's home.
Problem tenants and eviction basics
If a tenant stops paying or breaks the lease, you may be thinking about eviction before you sell. Here are the basics from official sources. Every case is different, so talk to a local attorney before you serve any notice.
Florida
- For unpaid rent, the landlord gives a written 3-day notice (not counting Saturdays, Sundays and legal holidays) before ending the lease, under section 83.56(3).
- For other lease violations, the statute uses 7-day notices, some that give the tenant a chance to fix the problem and some that don't.
- To end a month-to-month tenancy, at least 30 days' written notice is required (section 83.57).
- If the tenant stays, the landlord files for possession in the county court where the house is (section 83.59).
- Landlords may not shut off utilities, change the locks or remove doors to force a tenant out (section 83.67).
Texas
- TexasLawHelp says the notice to vacate is generally 3 days unless the lease says otherwise.
- A landlord cannot evict without filing a case in justice court. Most hearings happen within 10 to 21 days after filing.
- A tenant who loses has 5 days to appeal to county court. After that, a constable or sheriff can carry out a writ of possession.
Alabama
- For unpaid rent, the tenant has 7 days after written notice to pay before the lease can be ended (section 35-9A-421).
- For most other lease violations, the notice gives at least 14 days, and the tenant can fix the problem in that time.
- Evictions go through the court in the county where the house is located (section 35-9A-461).
- A landlord who unlawfully locks a tenant out or cuts essential services like water or power can owe the tenant damages (section 35-9A-407).
Eviction takes time and money, and you don't always have to finish one before you sell. Some landlords choose to sell with the problem tenant still in the house and let the buyer handle it.
Tired landlord? Your options for selling a rental
Late-night repair calls, late rent, turnover costs and the occasional tenant who won't leave wear people down.
| Option | Works best when | Trade-offs |
|---|---|---|
| Keep it and hire a property manager | The house rents well and you want to keep it | Management fees, and you still own the repairs |
| Wait for the lease to end, then list with an agent | The house is in good shape and you can wait | Months of waiting, a vacant house to carry, repairs, commissions |
| List it with tenants in place | Your tenants are cooperative | Fewer buyers, showings around the tenant's schedule, commissions |
| Sell to BigBuck Offers as-is | You want out with tenants still in the house | Usually nets less than a retail sale of a vacant house in good shape |
To be fair to you: if the house is in good shape, the lease ends soon and you can wait, listing it vacant with an agent will usually bring a higher price than a cash sale. A cash sale makes more sense when the tenants make showings hard, the house needs work, or you're simply done.
We buy houses with tenants in place, as-is. No fees, no agent commissions, and no repairs before closing. If the rental was damaged in a fire, see selling a fire-damaged house. And if the rental is part of an estate, see selling an inherited house.
If you'd rather keep earning from the house without being the landlord, you might also look at seller financing and how it affects capital gains.
We buy on Florida's West Coast, in Central Florida and Jacksonville, in Bell County, Texas, including Killeen, and in Birmingham, Alabama.
How selling to us works
- Tell us about the house. Use the form or call 1-844-348-9268.
- Get a cash offer, usually the same day we have the property details.
- Pick your closing date, as soon as 7 days.
Ready now? Get a cash offer for your rental using the form at the top of this page.
FAQ
Can I sell my house if my tenant has a lease?
Yes. In general, the lease stays in place and the buyer takes over as landlord. Check whether your lease says anything about a sale.
Does the new owner have to honor the lease?
Generally, yes. The Texas State Law Library says the new owner is bound by the existing lease unless it says it ends on sale. Ask a local attorney about your state and your lease.
Do I have to evict my tenants before I sell?
No. You can sell with tenants in the house, and we buy occupied rentals as-is.
What happens to the tenant's security deposit when I sell?
In Florida, the law says deposits and advance rent are transferred to the new owner at the sale. In Texas and Alabama, ask your attorney or title company how it's handled at closing.
Can I sell a rental house that needs repairs?
Yes. We buy as-is, so you don't have to make repairs or clean before you sell.
This page is general information, not legal or tax advice.
