Selling a Property With Tenants and the Laws Guiding It

Renting out your property as a landlord is good; however, you might feel the need to sell your house even while the tenants are still living in it. This can be quite difficult, especially if you do not know the right step to follow. The truth is that most buyers prefer to see the pictures of empty houses so that they can easily figure out how well the home suits their taste. It can turn intending buyers off when they find out that the property you intend to sell still contains your tenants. This is why it is essential to know the right steps to take before considering selling a house with tenants. 

Know the Laws and Regulations

This is the first step regarding selling a house with tenants in it. Different states have their landlord-tenant statutes; hence, it is essential to read about the one in your state. In some states, it is necessary to give the tenant a prior notice and update them about every step of the selling process. This will even help enhance the cooperation of the tenant.

Some regulations also specify prior notification, especially if you plan on showing the house. This means that you need to inform the tenants to make the necessary preparations. This can include thorough cleaning of the interior and exterior and keeping pets and other related properties out of view of intending buyers. You can also inform the tenant that you would love to make some repairs. However, be sure the regulation permits you to do all these before taking the step.

Another important consideration is the lease plan for the tenant. This could be a month-to-month lease or a fixed-term lease. These two have different state and local laws governing them. Generally, none of these lease plans encourage evicting a tenant without prior notice. However, it is easier to work with a tenant on a month-to-month lease than it is with a fixed-term lease plan. 

Information contained in the Tenant’s Notice

As stated earlier, it is better and even legal in some parts of the country to inform the tenant earlier before even putting the property up for sale. The best way to notify the seller is to write a sale of property letters to them. This letter will contain information about the property, the address, name of the tenant, and the date of the writing. The letter can also include:

  • Update regarding the listing of the house
  • Intention to make showings available 
  • The role the tenant needs to play in the sales process

All of these make the tenant feel as though they are being carried along in the sales process, which can increase the tenant’s cooperation. 


It is possible that some tenants might still not be interested in leaving, and the law of the state does not permit eviction until their rent expires. For such tenants, you can offer to pay a bonus or interest as this can encourage them to start considering relocating. You can even offer some tenants the option of buying the house, which will be a win-win for both parties.


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