Selling Rental Property With Tenants In California

Yes, a landlord can place a house for sale while still inhabited by a tenant. However, state law governs the rights and responsibilities of both the landlord and the tenant, as well as the terms of the lease agreement.

The new owner must honor the existing lease agreement and will need a cause to evict the tenant. The new owner must also provide the tenant with notice of the sale and their contact information. For example, suppose the new owner has plans to change the property significantly or to move in. Then, according to California Tenancy laws, they will have grounds to terminate the lease with proper notice.

Unless the new owner plans on moving into the property themselves, California law allows the tenant the right to stay in the rental unit until their lease ends. The new owner must give the tenants a 60-day notice to vacate the premises. If the tenant does not have a lease, the legal requirement is a 90-day notice.

As you are the legal owner of the property, you are allowed to show your property according to California law. However, it would be best if you give your tenants reasonable notice for such showings. The state of California requires information about showings to be provided at least 24 hours before the showing date and start time.

You should schedule showings within reasonable daytime hours, so you are not disrupting your tenants too much. Even though you are the property owner, it is best to get the tenants’ consent before showing the home.
Again, you can consult with your local housing authority to get specific information on what is needed to ensure you comply with local regulations and laws. This is because there are sometimes exceptions and nuances to the rule in different localities.

Are Any Covid-19 Eviction Moratoriums In California That Affect The Process Of Selling A Tenant-Occupied Rental Property?
Your local housing authority or a lawyer is the best avenue for finding out the most recent regulations. The most recent extension of the moratorium in Los Angeles extends to June 30, 2023, at the time of writing. This particular moratorium has been extended several times, so it is imperative that you check for the most recent information.

You will need to keep your tenants informed about the sale process as you go along. For example, give advance notice for property showings and provide regular updates on the sale process.

Tenants should also be given contact information for the potential buyer or real estate agent so they can ask questions to have their concerns addressed. As the landlord or property owner, you should also be available to answer or address your tenant’s questions and concerns.

Suppose your tenant has to be relocated due to the sale of the property. In that case, they may qualify for relocation aid or other financial incentives. These differ from one region to the next based on the laws and policies of each region.

Again, this is another situation where you will want to speak with a local housing authority representative to learn your tenant’s options and how those will affect you.

While you want to make your property as attractive as possible, you also want to strike a balance between maintaining a good relationship with your tenants. As the property manager/owner or landlord, you can do your part by ensuring that necessary repairs are made. You can further ask the current tenants to have the place in a tidy order on the day of your showing. This is why it is essential to provide your tenants with notice. Remember, this is their home, and they are entitled to privacy. They should be allowed to enjoy the property during the sale process.

It is possible to sell your rental property to tenants in California. The process may be more complicated than selling a vacant property, but it is possible. Always remain upfront with your current tenants and ensure that the lease agreement is detailed. You want to sell your property and protect your tenant’s rights. And you need to follow all local, state, and federal laws regarding your tenants’ rights and how you should sell your rental property.

When you choose the right approach, you can sell your rental property with tenants and be able to move to your next investment property or another opportunity with the proceeds of your home sale.

Suppose you are looking for a fast and no-hassle solution to selling your rental property with tenants. In that case, we can help you, especially if your tenants need to be more cooperative, as these types of tenants can make the process more accessible than it needs to be. When you choose us, we can have your cash offer within 48 hours, and you won’t have to worry about the hassle and stress of listing and dealing with realtors. We can help you sell your home fast; give us a call today.