Should I Sell a House with Tenants still in It? | Sparks Property Investors LLC

Sparks Property Investors
4 min readMar 1, 2021

Is it possible to sell a house with tenants, or should you evict them first? And should you sell it in a first place?

Having a tenant living in a house you’re planning on selling can be quite tricky. It adds new layers on the already difficult process. In order to sell a house with tenants, you’ll need to consider tenant’s rights determined by your lease, as well as local or state law. Also, you have to think about your own needs as a seller.

It isn’t a bad idea to communicate with the seller and let them know you’re selling the property, and even ask them if they’re willing to purchase it. Sometimes, tenants will gladly stay in the house they lived in. If not, here are some questions to ask yourself if you want to know should you sell a house with tenants living in it.

Can I Sell a Property with Tenants Living in It?

This is the first question to ask yourself when you want to sell a house with tenants. Believe it or not, but this is allowed by federal law, and in most states the tenant can stay in the property without any issues even after the ownership has changed, until the time their lease expires. In other words, you can’t evict your tenants just because you plan on selling your house. This, however, makes the house pretty unattractive to traditional buyers, which is why most people opt to sell to direct buyers, as they can buy your property and will gladly take over your (former) tenants. Also, they’ll pay you in cash, so you can quickly get all the money and profit. If you want to risk it and go the traditional route, here’s what you’ll need to consider.

What Are the Terms of the Tenancy?

If the tenant is month-to-month, then you just have to give notice required by the state law and wait until the tenant’s lease ends. However, if the property is in an area that is rent-controlled, you should check out state laws so you’ll know what to say to potential buyers, can they break the terms of lease or not. Think what might be the best option. If the lease isn’t long-term, maybe you should wait until the tenancy is over. However, if the lease won’t end soon, consider talking to a direct buyer, as they’ll likely be more than happy to take over a long-term tenant.

Is There a Pool of Potential Buyers?

As we’ve already mention, many direct buyers, including Sparks Property Investors LLC, will be more than happy to take a property with good tenants that pay rent on time and have a long-term lease. However, if you want to sell a house with tenants to traditional buyers, they might not be as interested in such an agreement. Traditional buyers want a house they can live in, and most want to move in now, so having tenants they have to wait on isn’t appealing. Very few buyers will want to wait before they can move in, and any type of wait isn’t good for them.

What Is the Property Type?

If you have a multi-family property with several renters, or if you live in an area that is attractive to potential buyers, you’ll likely have a lot of direct buyers fighting over it. They won’t mind current tenants — in fact, they’ll prefer having them right away. Another thing you should look at is the state of the market, as well as the appraised price of the property. High-priced properties will attract traditional tenants, who plan living in them. Properties on the lower end of the spectrum will likely attract direct buyers, who will want to use the house as landlords, or even to flip it. High utility bills can also influence this, as such properties attract fewer renters.

What Is Your Tenant Like?

Your tenant’s personality might also come into play when you have to sell a house with tenants. If you had a tenant who didn’t pay his rent on time, who never kept with housekeeping, doesn’t communicate well, or is simply considered to be a difficult person, this might hinder your selling efforts. No one will want to take over a tenant who isn’t responsible and who isn’t good with their obligations. Not to mention they might interfere with the showings! Opposite of that, if your tenant is neat, always pays on time, communicative, and willing to assist, this can help you in more than one way. Everyone will want a tenant who isn’t a headache! Not to mention they might even be willing to help you with preparing your house for sale.

Bottom Line

Depending on the answers to these questions, you should make a decision whether you should sell your house with tenants living in it, or wait until their lease is over. If you do decide to sell with tenants inside, for whatever reason, then your best choice would be to contact a local direct buyer, such as Sparks Property Investors LLC, as they will be more willing to take a tenant upon themselves compared to a traditional buyer who simply wants a home to live in.

Are you looking to sell a house with tenants in Milwaukee, Wisconsin? Sparks Property Investors LLC is buying houses and is willing to take over your tenants! Contact us today for an ALL CASH offer! (262) 288–0580

Originally published at on March 1, 2021.