Selling a House With Tenants in California: Rights, Notice to Sell & More
Selling a house with tenants in California? Navigating the required laws, regulations, and procedures can feel overwhelming—especially since even a small misstep might delay your plans. But it doesn’t have to be hard. With a trusted partner by your side, you can skip the hassles and complexities, and close with confidence.
If you’d prefer to avoid having to find a buyer and dealing with the hassle, and would rather receive a fair value, all cash offer for your home instead, let the experts at SoCal Home Buyers handle the transaction for you, so you can move on with your life sooner than later.
Table of Contents
Selling a home with tenants California guide
If you’re ready to sell property with tenants in California, there’s a lot to consider. To begin, you will need to provide your renters with notice that is in accordance with California’s renter-friendly stance. Further, you will need to successfully navigate the legal process while protecting your rights and bottom line.
It’s a lot, but this guide can help.
Can you sell your house with tenants in it?
If the question—Can I sell my rental property with tenants in it?—is on your mind, you’re likely interested in selling the property fairly quickly. While it’s possible to sell your rental with tenants, it requires considerable finesse.
California is considered a renter-friendly state, and the laws are exacting, which makes working with a well-established California real estate investment company an excellent way to remain within the confines of the law while getting the job done.
In California, you have the legal right to sell property you own with tenants living in it, as long as you uphold the terms of the rental agreement that’s in place to protect tenants and your legal responsibilities.
Selling a property with tenants vs asking them to leave
If you’re selling tenant occupied property and aren’t sure how to address the matter of your tenants, you have two primary options that include selling the occupied property or asking your renters to move out and waiting for them to do so before proceeding with the sale. Both choices have pros and cons.
Benefits of selling a property with renters
The upside of selling your home with tenants includes all the following advantages:
- In a sense, your home is already staged. While you won’t be able to control how your renter prepares your place for showings, selling a place that’s furnished is easier than selling a property that’s empty, and this is simply because potential buyers generally aren’t visionaries.
- When you sell the property, you won’t miss out on rent payments while the house is on the market.
- A home that comes pre-filled with tenants can be more attractive to real estate investors, who may be glad to skip the hassle of arranging new renters.
The cons when you sell a tenant occupied rental
If you’re deciding when to sell rental property that has tenants still living in it, you will need to consider the following obstacles:
- Bad Tenants can cause an assortment of problems. For example, a tenant who doesn’t want to cooperate can make showings difficult—or next to impossible. If a tenant doesn’t keep your place looking presentable, refuses to leave during showings, or who interferes with your ability to show the place at all can negatively affect the process of selling.
- If the tenant living in your property owes you rent or refuses to honor the end of their lease, it can make this process a bit more complicated for you and you could face a lengthy legal battle that can interfere with your closing.
You’re ready to sell a property with a tenant, but there’s a lot involved, and the potential that you’ll run into trouble along the way is all too real. Selling an inherited house or an occupied rental is a mixed bag that comes with a high margin of unpredictability and challenging legal guidelines.
Generally, the path forward is far more direct without tenants in residence, which makes reaching out to a professional real estate investment company a great place to start.
How to sell a house with renters: Your 3 options
If you’re selling a home with tenants, you have options, and better understanding these options can help you make the right choice to successfully sell — given the unique circumstances involved.
1. Selling a rental property with a tenant to us!
The most straightforward, least complicated and expedited means of dealing with tenants, even if it’s an uncooperative tenant, is turning to a professional California real estate investment company.
At SoCal Home Buyers, we help homeowners like you who are trying to sell quickly—without the hassle, stress or having to resort to a real estate agent, with their rights and best interests intact.
Selling to us allows you to forget about having to find a buyer and makes the sale process much easier. When it comes to finding a prospective buyer, it doesn’t get much simpler than selling it for cash in just a few days.
Selling the house with us is simple:
- Request a cash offer for your house with a tenant by simply entering your contact information and the address of the property you’re interested in selling on the form provided.
- Wait for a prompt call from us, in which we’ll gather more information and schedule your home’s inspection.
- Our in-house inspector will conduct a one time thorough inspection of your property and will make our best offer on the spot.
- If you like our offer, consider your house sold. You’ll simply choose the best closing date for you, and we’ll get to work making that happen.
When you sell to SoCal Home Buyers, even if the house is occupied, you bypass the headaches generally associated with selling a house with a tenant on the traditional market.
2. Selling a rental property to tenants
The tenants who are already renting your place may be interested in buying it. In fact, if they offer to pay for it, it can save you both a considerable amount of time, energy and resources.
Once you make up your mind to sell a property with renters, letting your renters know and affording them the opportunity to make an offer emphasizes your good faith efforts, which can go a long way toward alleviating tensions and keeping things moving smoothly forward—regardless of the house-selling option you choose.
3. Waiting until the end of their rental agreement
Another option is waiting until your tenants rental agreement is up. At that time, you will face no selling constraints, but waiting it out may not suit your plans if the goal is to sell my house fast in California.
Some landlords incentivize their renters to leave by sweetening the deal. For example, offering to pay for their moving costs or help in another way may entice them to break the lease.
How long do tenants have to move out after a house is sold in California?
If you’re putting your home on the market and it has renters living in it, there is the obvious matter of wrapping the landlord-tenant relationship up as efficiently as possible. The circumstances of your sale will be unique to your property and situation, and how long you need to allow your tenants for moving out post-sale will hinge on several factors.
Tenants rights when the landlord sells property in California
As mentioned, California has some of the most tenant-friendly laws in the nation, which means you need to the rights of tenants.
So, what rights do tenants have when the house is being sold in California?
If you intend to sell investment property that tenants occupy, it’s important to recognize they have robust rights you need to be aware of.
These include:
You have the absolute right to sell your property as quickly as you can in California, but remaining within the parameters of the law is paramount. By selling to a professional real estate investment company, you bypass the legal hassles while speeding up the process—a win-win from all perspectives.
Selling a rental house with renters on a lease vs month-to-month
The process of asking an existing tenant to leave prior to selling your rental house hinges on the kind of lease you have in place and depending on how long is left on the lease. If you have a fixed-term lease in place and it doesn’t include an early termination clause, the matter is more complicated because the new landlord will inherit the lease.
Your tenant has the right to continue living on the property without interruption until the end of the lease – as long as they uphold the lease agreement, including continuing to pay their rent. While it’s your right to begin the process of selling your rental, you can’t trample on your tenants’ rights or expect them to move out early based on your convenience.
If, on the other hand, you have a month-to-month lease, things are more flexible. It’s important to note, however, that laws related to California rentals also protect the rights of month-to-month tenants—who are owed at least a 60-day notice for lease termination.
Just cause
Typically, vacating a rental is based on just cause, which refers to a legal reason for requiring a tenant to vacate a rental, and can be either fault based or no fault.
Fault-based just cause in California
Prime examples of fault-based just cause include:
- The tenant breached the lease terms
- The tenant was delinquent in relation to payment of rent or otherwise made a nuisance of themselves
- The tenant engaged in illegal activity in your rental
- The tenant refused to allow you entrance—after you afforded them proper notice
- The tenant sublet your investment property—in violation of the lease
Just because you have just cause in relation to a tenant, however, does not absolve you of responsibility. In some situations, landlords are required to allow renters the opportunity to remedy any errors prior to making them vacate.
No-fault just cause in California
There are situations in which property owners who want to sell have just cause to vacate a property, even if their tenants didn’t engage in any lease violations.
Examples of this no-fault just cause include:
- If you or the property’s new owner decide to occupy the dwelling, it serves as just cause to vacate and can even preempt a valid lease. The same is true if you or the new owner’s spouse or domestic partner, child, grandchild, parent or grandparent intends to move in.
- If you plan on removing the property off the rental market entirely—for any reason—it can serve as just cause for giving notice to vacate.
- If you plan on demolishing the property for a new build or making substantial renovations, it can qualify as no-fault just cause.
- If California’s evolving laws deem your property no longer habitable, it’s a form of no-fault just cause for tenant removal.
If you do proceed vacating your rental in accordance with no-fault just cause, you are not only required to notify your tenants, but are also required to either waive their final monthly rent or provide them with a one-time payment of relocation assistance that is equal to one month’s rent. If, on the other hand, the just cause is based on fault, this payment is not a concern.
Without just cause
If you don’t have just cause for requiring your tenant to move in advance of sale and they have lived at your property for more than 12 months, it’s time to revisit your lease agreement. Some leases include language that allows early termination. This generally comes at a price, but such clauses can prove invaluable.
If there is no way around the lease and you have no just cause, your best option may be waiting out the lease. You can re-frame this as an opportunity to prepare the property for sale. It’s also important to give your tenants notice of at least 60 days before they’ll be required to leave.
Landlord notice to tenant to vacate due to sale
If you’re selling rental property with tenants in California, it’s essential to follow state-specific guidelines to give tenants proper notice and respect tenant rights.
1. Initial Written Notice of Intent to Sell
California does not require a 120-day waiting period before showing the property. However, providing an initial written notice of intent to sell can simplify the showing process. With this notice, landlords may give 24-hour verbal notice before each showing for up to 120 days, instead of needing a written notice for each entry.
Why Issue a Notice of Intent to Sell?
- A Notice of Intent to Sell informs tenants of the planned sale early on, which can help maintain a positive landlord-tenant relationship and reduce misunderstandings.
- By providing this initial notice, landlords streamline the process for potential showings and minimize disruptions for tenants. This approach allows a 24-hour verbal notice for each showing, simplifying the process compared to the requirement for repeated written notifications.
What to Include in Your Notice of Intent to Sell:
- A clear statement of your intent to sell the property
- Information about how showings will be managed, including that 24-hour verbal notices may apply for up to 120 days
- A reminder to tenants of their rights to privacy and quiet enjoyment, with assurance that showings will be scheduled during regular business hours
2. Entry Protocol After Initial Notice
Once the initial notice is provided, landlords can give a 24-hour verbal notice for each showing. Showings must be scheduled during regular business hours to respect tenants’ rights to quiet enjoyment.
3. Without the Initial Notice
If the initial notice is not provided, California law requires a 24-hour written notice for each showing, making the process more restrictive and time-intensive.
120-Day notice to sell in California
The term “120-day notice to sell California” is often misunderstood. California law does not require landlords to wait 120 days before showing or selling a property. Instead, landlords can issue an initial written notice of intent to sell that grants them the right to provide 24-hour verbal notice for showings within a 120-day period.
Purpose of the 120 Days
The 120-day period helps landlords streamline showings by allowing a simple 24-hour verbal notice instead of requiring a written notice for each showing. If the initial 120-day notice is not issued, landlords must provide a 24-hour written notice for each showing.
Tenant Rights During This Period
Even with the 120-day notice, landlords must respect tenants’ right to quiet enjoyment. Showings must occur during standard business hours to avoid disrupting tenants.
Tenant notice requirements and occupancy rights
In California, tenants are entitled to specific notice requirements and occupancy rights during the sale of a rental property. These guidelines help ensure that tenant rights are respected, whether they hold a fixed-term lease or a month-to-month rental agreement.
Fixed-term lease tenants
Tenants under a fixed-term lease are generally entitled to remain in the property until the lease expires, even if ownership changes. Landlords must honor the lease until its end date, so no notice to vacate is required until the lease is close to expiring.
If showings are necessary before the lease ends, landlords are required to provide 24-hour written notice for each entry. This respects the tenant’s right to privacy and quiet enjoyment during the showing process.
Month-to-Month tenants
For month-to-month tenants, California law sets standard notice requirements based on the length of tenancy:
- 60-Day Notice: Required if the tenant has lived in the property for one year or more.
- 30-Day Notice: Required if the tenant has resided in the property for less than a year.
These notice requirements ensure compliance with California law when selling rental property with tenants. Following these steps allows landlords to coordinate showings while upholding tenant rights throughout the sale process.
Free sample letter to notify tenant of sale of property
Preparing to sell your property? Staying organized is essential, and a clear, straightforward tenant notice letter is a must. Our 30 and 60-day notice templates cover all the key elements you’ll need, helping you communicate effectively and stay on track. Receive your free template below:
How long do Tenants have to move out after a house is sold in California?
In California, tenants are not automatically required to move out when the property they’re renting is sold. The amount of time a tenant has to vacate depends on their lease type—whether it’s a fixed-term lease or a month-to-month tenancy—as well as state notice requirements. Here’s how it works:
Fixed-Term Lease Tenants
Tenants under a fixed-term lease have the right to remain in the property until the lease expires, even if ownership changes. The new owner must honor the lease until its end date unless both parties agree to an early termination.
The only exception to this rule is if the new owner intends to occupy the property themselves, in which case they may issue a 60-day notice to vacate once the lease term ends.
Month-to-Month Tenants
For tenants with a month-to-month rental agreement, California law requires the following notice periods:
- 60-day notice: If the tenant has rented the property for one year or more.
- 30-day notice: If the tenant has rented the property for less than a year.
This notice applies even if the property is sold, allowing tenants time to make new arrangements. If the new property owner intends to occupy the property, or if the tenant agrees to an early move-out, there may be additional negotiation options, including offering financial incentives.
It’s essential for landlords and tenants to adhere to these guidelines to ensure a smooth and lawful transition.
What to do if a tenant refuses to leave when a house is sold in California?
If tenants refuse to vacate after you’ve sold your property, rest assured that you have legal rights to address the situation. However, pursuing a peaceful resolution can reduce stress, time, and expenses.
Here are steps and options to consider:
- Maintain Professionalism and Communication
Strike the right balance: be firm but unfailingly polite with your tenants. If they are taking an aggressive stance, refusing to leave, or complicating the process, it’s essential to keep interactions calm and professional to avoid escalating tensions. - Document the Property Condition
Before notifying tenants of the sale, inspect the property for any wear, tear, or damage and take clear photos. An inventory of the property can serve as evidence and encourage tenants to maintain good behavior. - Review Lease Violations
If your tenants refuse to cooperate, reviewing the lease for potential violations can be an effective route. Common issues include illegal drug use, failure to pay rent, unauthorized subleasing, and property maintenance violations, which can be grounds for eviction. - Consider Illegal Activities as Grounds for Eviction
Illegal activities not covered by the lease can also justify eviction. If there’s reasonable suspicion of unlawful conduct and your tenants sense you may involve the police, they may decide to vacate. - Negotiate a Peaceful Exit or Cash for Keys
If all else fails, consider negotiating a peaceful exit through a “cash for keys” arrangement. Offering a financial incentive can expedite the tenant’s departure and save on legal fees associated with formal eviction proceedings. - Sell to a Real Estate Investment Company
Selling directly to a professional real estate investment company, like SoCal Home Buyers, lets you leave the tenants in place without handling the hassles of eviction. We’ll manage the details, providing you with a stress-free, fair-value cash offer that allows you to close quickly without tenant-related complications.
If you choose to sell to a professional real estate investment company like us, you can leave the tenants in place, without having to worry about it. We'll take care of the hassle of having to deal with them.
Tips on selling rental property with renters ethically and legally
If you're planning on selling an investment property, you're bound by California's strict laws, but you also want to proceed ethically. Your tenants have a right, after all, and are facing considerable stress of their own.
How to tell tenants you're selling the house
Keeping your renters informed of your intention to sell is the right thing to do. To begin, it helps to bolster the trust you've built between you.
In turn, this helps ensure your tenants continue taking excellent care of and don't make the property a mess throughout the process. If it's time to tell your tenants that you plan on selling, keep all the following in mind:
- Consider telling your tenants in person, as a means of preparing them for written notice.
- Give ample notice that, at a minimum, complies with the law.
- If you know your renters will need to move, such as if the new buyers are planning on moving in, be honest about this fact.
Additional pointers
Some additional helpful hints related to selling your rental property include:
- Treat your tenants with the respect they deserve, and remember you benefit from them in a range of important ways that include maintaining your property, paying rent and alerting you to any problems.
- Keep your tenants in the loop as you move through the sales process—no one wants to be blindsided.
- If you can't wait until your renters' lease is up and don’t have just cause for vacating, engage in fair negotiations that honor your tenants' rights.
Considering selling an occupied rental to us?
If you're interested in selling your rental that's tenant occupied, you have options, and we're well prepared to offer to help with a streamlined process that considers all your needs.
To get started:
- Give us a call at 951-331-3844—or fill out the short form below—to request your fair cash offer.
- We'll discuss your property in greater detail with you and schedule a one-time inspection that allows us to offer the highest amount possible.
- At the time of the inspection, our in-house inspector will quote you a fair cash offer, and if you're on board, you can consider your home sold!
- Choose your closing date, and leave the rest to us. You can choose payment via check or money order. It simply doesn't get any easier no matter how long is left to their lease.
FAQs
Can I sell my house with tenants in it?
You can sell, but you'll need to follow specific legal guidelines, including providing your tenants with a notice of sale of property. Managing a sale with tenants involved can be more complex, but a real estate investment company can simplify the process.
Can I evict my tenant in California if I want to sell?
You can only evict your tenants if you have just cause for doing so and you go through the proper legal channels. Just cause can either be fault based, such as if your renters breached their lease, or no fault, such as if you're planning a major renovation.
If tenants are impacted by the sale, are there financial incentives or assistance programs in California?
Under some circumstances, landlords are required to provide displaced renters with financial incentive, such as a month's rent, and the State of California also offers a range of federal and state grants and funding in specific situations—creating rental opportunities for a wide range of Californians.
Can a landlord sell a house before the lease is up?
Yes, landlords in California can sell a property before the lease is up, but any new owner must honor the existing lease terms. This means that tenants on a fixed-term lease are generally entitled to remain in the property until the lease expires, unless both parties agree to end the lease early. California law ensures tenants’ rights are protected during a sale, so they can complete their lease term without disruption.
