Are you thinking about selling your rental property but still have tenants living in it? Don’t worry — it’s possible, and many landlords do it! At RedHead Home Properties, we help property owners sell their homes fast, even with tenants inside. In this blog, we’ll walk you through how to sell rental property with tenants the smart and simple way.
Is It Legal to Sell a Rental Property with Tenants?
Yes! You are legally allowed to sell your rental property even if tenants are living there. But you must follow the law and treat your tenants fairly. Their lease or rental agreement doesn’t disappear just because you want to sell. The new owner must also respect that lease if it’s still active.
Types of Rental Agreements: Know What You’re Working With
Before you sell, you need to know what kind of rental agreement your tenant has. This will help you decide your next steps.
- Month-to-Month Lease : These are easier to end. You just need to give proper notice (usually 30 or 60 days, depending on your state laws).
- Fixed-Term Lease : This is a lease for a set period, like 6 months or 1 year. You can’t make the tenant leave before the lease ends unless both sides agree.
Option 1: Wait Until the Lease Ends
If you’re not in a rush to sell, the easiest option is to wait until your tenant’s lease is over. Then, you can ask them to move out and sell the property empty. This is the smoothest way to avoid any issues.
Pros:
- You don’t need to worry about showing the home with people inside.
- You can clean and fix up the property to get a better sale price.
Cons:
- You have to wait.
- You might lose rental income during the time the home is on the market.
Option 2: Sell with the Tenant in Place
Yes, you can sell the home with your tenant still living there. Some investors actually prefer this! It means they can start earning rent right away.
How to Make It Work:
- Be honest with your tenant. Let them know you’re planning to sell.
- Ask if they’re okay with showings (or offer them a small discount on rent in return).
- Work with a real estate investor like RedHead Home Properties who buys homes as-is , even if tenants are inside.
Pros:
- You keep collecting rent until the day you sell.
- You don’t need to find a new buyer — many investors are happy to buy with tenants.
Cons:
- Showings can be tricky if the tenant is uncooperative.
- Some buyers don’t want a tenant already in place.
Option 3: Offer Cash for Keys
If you need the tenant to move out before the lease ends, you can try a friendly deal called “cash for keys.” This means you offer them money to leave the property early.
Example:
You might offer $500 to $1000 or more, depending on your local rental rates and the situation. It saves time and avoids the hassle of eviction.
Tip: Get everything in writing. A simple agreement helps both sides stay protected.
Tips for Talking to Your Tenant
When selling your rental property, communication is key. Here’s how to make it easier:
- Be Honest and Respectful – Don’t surprise them with a “For Sale” sign on the front lawn.
- Explain What’s Happening – Let them know their rights and what changes to expect.
- Offer Incentives – A rent discount, moving help, or cash for keys can go a long way.
- Give Proper Notice – Always follow your local laws when giving notice for showings or move-outs.
Should You Tell Buyers About the Tenant?
Yes! It’s important to be upfront with potential buyers. If the tenant is staying, include lease details in your listing. Many investors love buying rental properties with tenants already paying rent.
At RedHead Home Properties , we often buy homes that already have renters. We handle everything — so you don’t have to worry.
Benefits of Selling to a Home Investor Like Us
If you don’t want to go through the stress of dealing with tenants, real estate agents, and endless showings — we’ve got your back.
When you sell to RedHead Home Properties :
- ✅ We buy homes as-is — no cleaning or repairs needed.
- ✅ We’re happy to buy with tenants in place.
- ✅ You get a fair cash offer fast.
- ✅ You pick your closing date.
- ✅ No agent fees or long waiting times.
Real Stories: We’ve Helped Landlords Just Like You
One of our clients, Sarah from South Carolina, had a rental home with long-term tenants. She wanted to sell but didn’t want to disrupt the renters or wait months for a buyer.
We made her a fair cash offer and closed in just 14 days — with the tenants still in the home. Everyone was happy!
We do this all the time. And we can help you too.
Final Thoughts: Selling a Rental Property Doesn’t Have to Be Hard
If you're wondering how to sell rental property with tenants, the answer is simple — you have options. Whether you wait until the lease ends, offer incentives for the tenant to move, or sell with the tenant still living there, there’s a solution that works for your situation.
The easiest way? Sell to a trusted home buyer like RedHead Home Properties . We’ll guide you every step of the way — no stress, no delays.