Landlord Issues · 5 min read
Selling a Rental Property With Tenants in Place
Most retail homebuyers want a vacant property they can move into. That makes selling an occupied rental on the open market difficult — agents often pressure landlords to evict before listing. A direct cash sale to an investor solves the problem: we buy occupied rentals as a standard part of our business.
Published March 8, 2026
Selling occupied: what gets transferred
At closing, the buyer takes the property subject to the existing lease. Security deposits are transferred to the new owner, and the tenant becomes the new owner's tenant. Month-to-month tenants stay month-to-month under the new landlord until the new owner either renews, ends the tenancy lawfully, or negotiates a buyout.
Tenant notification is straightforward: a short letter from the new owner stating new payment instructions. The tenant doesn't need to move out, and you don't need to do anything beyond signing.
What we look at on an occupied rental
Three things matter: the lease (term, rent, deposit), the rent vs. market (how far below market is current rent), and the tenant's payment history. We don't require perfect tenants — late payers and Section 8 tenants are fine. We do require that the lease and ledger are accurate so we can underwrite the deal.
Cash-for-keys vs. transfer-with-tenants
If you'd rather close vacant — for a higher offer — we can fund a cash-for-keys agreement at closing. The tenant gets a relocation payment, you get a vacant sale, and we take the property empty. Whether that math beats selling occupied depends on the tenant and the local rental market.