To sell a house with tenants in it, you can sell it with the tenants in place to a buyer who takes over the lease, wait for the lease to end, offer the tenants a voluntary cash-for-keys agreement, or list it and show it occupied, following your state's notice rules for entering the house.
A sale does not, by itself, end a lease. California DRE, 2026 · Georgia DCA handbook
This is general information, not legal advice. Landlord-tenant rules differ by state, city, and lease. A local landlord-tenant attorney can tell you what applies to your house.
What are the four ways to sell a tenant-occupied house?
Each way trades speed against disruption and cost. The right one depends on the lease, the tenant, and how soon you want to be done.
| Way to sell | Time to close | Tenant disruption | Out-of-pocket cost | When it fits |
|---|---|---|---|---|
| Sell with tenants in place to a direct cash buyer | Can be days to weeks; no buyer loan approval | Low; often no showings | Low; depends on the buyer's terms | You want out soon, the tenant stays, or the house needs work |
| Wait for the lease to end | The rest of the lease, plus the time to sell | Low until move-out | Carrying costs, then turnover and listing costs | The lease ends soon and you want a vacant sale |
| Negotiate cash for keys | Move-out date you agree on, plus the time to sell | Moderate; the tenant moves, by agreement | The agreed payment, plus listing costs | The tenant is willing to move and a vacant sale suits you |
| List and show it occupied | Time on market, plus buyer financing | Higher; showings inside the tenant's house | Commission and closing costs set by your listing agreement | The house shows well and the tenant cooperates |
A note on cash for keys: it is a voluntary deal. The tenant agrees in writing to move by a date, and you pay an agreed amount. The tenant can say no. In California, it is unlawful to try to influence a tenant to move with threats, force, or menacing conduct, or by significant and intentional violations of the entry rules. California DRE, 2026 Ask a local attorney before you make an offer.
What happens to the lease and the deposit at closing?
The lease. California's Department of Real Estate says a voluntary sale does not change a tenant's rights. Tenants with a rental agreement can stay to its end on the same terms. A new owner may end a month-to-month tenancy only as the law allows, after the required notice, and the Tenant Protection Act may require just cause. California DRE, 2026 Georgia's handbook says new owners are generally subject to existing leases. Georgia DCA handbook
The security deposit. States require the deposit to follow the house or go back to the tenant:
- Texas: the new owner is liable for the deposit from the date it gets title, and must give the tenant a signed statement of the amount. The seller stays liable until the new owner receives or assumes the deposit (Tex. Prop. Code 92.105).
- Florida: on a sale, deposits and advance rents must transfer to the new owner with an accurate accounting (Fla. Stat. 83.49(7)).
- California: the seller transfers the deposits or returns them, may first make lawful deductions such as unpaid rent, and must notify each tenant in writing with the new landlord's name, address, and phone number (California DRE, 2026).
- Georgia: the former owner either transfers the deposit to the new owner or refunds it to the tenant (Georgia DCA handbook).
- Michigan: the seller stays liable until it transfers the deposit and mails the tenant notice of the new owner's name and address, or returns the deposit (MCL 554.614).
At closing, ask the title company to show the deposits and any rent you collected for the closing month on the settlement statement. That way, the buyer and the tenant can both see what moved.
What notice do you owe tenants for showings and a sale?
| State | Showings to buyers | Deposit at sale |
|---|---|---|
| Texas | Chapter 92 of the Property Code sets no general notice period for entry or showings; read the lease (Tex. Prop. Code ch. 92) | New owner liable from the date of title; signed statement to the tenant (92.105) |
| Florida | The tenant may not unreasonably withhold consent to show the house to buyers; 24 hours is the statute's notice for repair entries (Fla. Stat. 83.53) | Transfer with an accounting (83.49(7)) |
| California | Written notice; 24 hours presumed reasonable; for buyer showings, oral notice is allowed if written notice of the sale was given within the past 120 days; normal business hours (Civ. Code 1954, per California DRE) | Transfer or return, with written notice (Civ. Code 1950.5, per California DRE) |
| Georgia | The lease sets when the landlord may enter; without a lease right, the tenant may refuse except in emergencies (Georgia DCA handbook) | Transfer or refund (Georgia DCA handbook) |
| Michigan | No statewide notice period appears in the security deposit act or the Legislature's tenant and landlord guide; read the lease (Michigan Legislature guide) | Seller liable until transfer and written notice (MCL 554.614) |
Local rules can add to these. California's guide, for example, notes that some rentals are covered by local just-cause laws as well as state law. California DRE, 2026 Confirm with a local attorney before you schedule showings or give any notice.
Which documents should you gather?
A buyer and a title company will ask for these. Having them ready can keep the closing date on track.
The lease and any changes
The signed lease, renewals, addenda, and any written side agreements. Note whether it is a fixed term or month-to-month.
The rent ledger
Rent charged, rent paid, and any balance owed, with dates. List late fees separately; in Texas, a late fee requires notice in a written lease (Tex. Prop. Code 92.019).
Deposit records
The amount, where it is held, and any notices you gave about it. Michigan, for example, requires deposits to be held in a regulated financial institution unless the landlord posts a bond (MCL 554.604).
Move-in condition records
Checklists, photos, and inspection notes. Michigan requires inventory checklists at the start and end of a tenancy when a deposit is taken (MCL 554.608).
Notices and filings
Copies of every notice you served and any court filings, with their status. Tell the buyer if an eviction case is open.
Tenant and service details
Tenant contact details, keys and codes, utility accounts, and service contracts the buyer may take over.
Common questions about selling a house with tenants
Can I sell a house with tenants in it?
Yes. In general, a sale does not end a lease. California's Department of Real Estate says a voluntary sale does not change a tenant's rights, and tenants with a lease can stay to the end of it. Georgia's handbook says new owners are generally subject to existing leases. The buyer takes the house with the tenants and the lease in place.
What happens to the lease when I sell a rented house?
The lease usually stays in force, and the buyer becomes the landlord on the same terms. A month-to-month tenancy can end only as state law allows, after the required notice. In California, the Tenant Protection Act may also require just cause. Rules differ by state and city, so ask a local landlord-tenant attorney before you give any notice.
What happens to the security deposit when I sell?
In most states, you transfer the deposit to the buyer at closing or return it to the tenant. Texas makes the new owner liable for it from the date of purchase. Florida requires the transfer with an accounting. Michigan keeps the seller liable until the deposit is transferred and the tenant gets written notice. Ask the title company to show the deposit on the settlement statement.
Can I offer tenants cash for keys?
Yes. Cash for keys is a voluntary, written agreement: the tenant moves out by a set date, and you pay an agreed amount. The tenant can say no. Keep the offer calm and in writing. California makes it unlawful to influence a tenant to move with threats, force, or menacing conduct. Local rules may also apply, so ask a local landlord-tenant attorney before you make an offer.
Will a cash buyer take tenants behind on rent?
Some will. A direct cash buyer that buys houses with tenants in place can take on the tenancy as it stands, including unpaid rent, and price it in. Ask the buyer in writing how it treats back rent and the deposit. Deposit rules matter here: Michigan lets a deposit cover rent in arrearage, and California lets a selling landlord deduct unpaid rent before transferring deposits.
Do I have to let buyers see the house before I sell?
Only if a buyer asks. A buyer who does not need to tour the inside can skip showings, which keeps disruption low. If you show the house, follow your state's entry rules and the lease. Florida says a tenant may not unreasonably withhold consent to show the house. California presumes 24 hours' written notice is reasonable for most entries.
Selling to a direct cash buyer, tenants and all
Propcash is a direct cash buyer that buys rental houses with tenants in place, as-is, whether the lease is running, month-to-month, or behind on rent. You talk with the decision-maker, get one cash offer with the reasoning explained, pay no fees, and do not need to evict anyone first. Closing can happen in as few as 7 days or on the date you choose. See how a tenant-occupied sale works, or request a cash offer and compare it with your other options at your own pace.
Sources checked October 23, 2026. Texas, Florida, California, Georgia, and Michigan are examples only. Your state's law, local ordinances, and your lease control your situation.