How do I sell a house that has tenants living in it?
Written and reviewed by Andrew Ragusa, Licensed Real Estate Broker and Broker of Record, REMI Realty LLC — 11+ years of transactions across Long Island, Brooklyn and Queens.
The short answer
When selling a house with tenants in place, the first step is understanding the lease, the occupancy situation and whether the property can realistically be delivered vacant. Selling the property vacant will usually expand the buyer pool because more owner-occupant buyers may be able to participate.
One possible approach is a voluntary cash-for-keys agreement. The owner and tenant agree on a payment in exchange for the tenant moving out and returning possession of the property by an agreed date. In my experience, that can sometimes require less time, money and stress than a contested eviction, but it is not automatically the right answer in every situation.
The lease, required notices, occupants’ rights and the exact agreement should be reviewed with a qualified landlord-tenant attorney. I can explain how selling occupied or vacant may affect the real estate strategy and coordinate the sale around the lawful plan that the owner and attorney approve.