Selling Housing: How Landlords Can Prepare Their Renters Before the Sale

July 1, 2021

If a landlord with renters plans to sell the property, there are a lot of considerations needed. For the essence of presenting the property in the market with the utmost legality and greatest convenience, landlords must consider the tenant’s rights under a rental agreement, respective state or local law, and personal demands of the landlord and tenant.

There is always an option to let the tenant move out immediately, yet this may be considered inhumane for the seller and may disobey their agreement. However, if the seller decides to have a tenant in the property while it is in the market, ensuring that the tenant understands the entire process and promises to be cooperative is very important.

If you need to sell that property fast, you might consider selling it to “we buy houses for cash” companies. Before selling your property, discussed below are how and why a landlord should prepare their renters before the sale:

Assess the situation.

If a landlord plans on selling a property, the following factors are used to assess whether selling the property with a tenant in place is advisable:

Go back to your agreement.

A landlord’s agreement to their tenants can either be monthly or rent-controlled. If it’s every month, it’s the landlord's responsibility to end the agreement by giving the notice to the current tenant as required by state law. If it’s rent-controlled, you have to abide by some laws that assure that the tenants will end the rental agreement in line with a valid reason for selling the property.

Characteristics of the tenant.

Regardless of any formality of settling the sales, everything will boil down to the personal characteristics of the tenant - responsiveness to communication, payment alertness, and how they take care of the property.

Demand for the property in the market.

The rule of thumb in selling a tenant-occupied property is that having a tenant will most probably reduce the number of potential buyers. However, companies like “we buy houses for cash” companies will be readily available to purchase your tenant-occupied property, as long as all documents and agreements are settled.

Prepare your tenants.

Whether a landlord plans on selling the property when a tenant is living there or intends to terminate their agreement beforehand, the following guides are needed to assure mutual understanding between the two parties:

  • Real estate agents should know that tenants should be informed of the showing times at least 24 hours before to respect the tenant’s schedule and evacuate the place when the potential buyer is there, if possible.
  • The landlord should help tenants find a new residence whenever they need help, to the best extent that the landlord can aid.
  • Make sure that the tenant is caught up with the rent to prevent future conflicts.


Selling a property as a landlord may bring you the most financial comfort, but a landlord should always consider the tenant. It’s best to avoid conflicts and hassles for both parties when selling your property.



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