The Process of Selling a House with Tenants in California

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

If you are a homeowner in California who is looking to sell your house but you have tenants living in it, you may be wondering what the process is like. Selling a house with tenants can be a bit more complicated than selling one that is tenant-free, but it is not impossible. 

In this blog post, we will discuss the process of selling a house with tenants in California so that you can understand what to expect.

The Benefits of Selling a House with Tenants

There are a few benefits to selling a house with tenants:

  1. It’s usually simpler to sell a home with tenants in place since potential buyers won’t have to worry about finding new renters.
  2. When it comes time to sell a property with renters, you may get a higher price since purchasers will be prepared to pay more for one that already has an income source.
  3. You can avoid the hassle and expense of evicting your current renters by selling your home with tenants.

The Risks of Selling a House with Tenants

There are, however, a few disadvantages to selling your property with tenants, including:

  1. It’s possible that you won’t be able to locate a buyer who is interested in buying a property with tenants.
  2. The sale process may take longer because you’ll need to work around your tenants’ schedules.
  3. You may have to make some repairs or modifications to the house to make it more attractive, which will result in additional costs.

How to Determine If You Can Sell a House with Tenants

The first step in determining whether you can sell your house with tenants is to review your lease agreement and verify your tenants’ rights. A lease agreement that specifies that the tenant has a specific amount of time to occupy the property prevents you from selling the property until that period has expired. If, however, the agreement does not specify whether or not the property can be sold, you may still be able to sell it.

California Eviction Laws

It is possible for a landlord to terminate a tenancy early and evict a tenant for a variety of reasons, including non-payment of rent, violating a lease or rental agreement, or committing an illegal act. A written notice of termination must be given by the landlord to the tenant. Termination reasons will determine what type of notice is required.

Nonpayment of Rent

A landlord can give a tenant a three-day notice to pay rent or move out if they do not pay rent when it is due. Tenants are notified that they have three days to pay their rent in full or move out. A landlord can sue a tenant for any amounts owed that exceed the security deposit if the tenant moves out before the three-day deadline. After three days, if the tenant doesn’t pay rent or moves out, the landlord can file an eviction lawsuit.

Unfixable Lease Violations

The landlord may give the tenant a three-day notice to cure if the tenant violates the lease or rental agreement. Upon receipt of this notice, the tenant has three days to correct the violation or move out. The landlord cannot evict a tenant who moves out within three days, but can sue them for unpaid rent or damage to the rental over the security deposit. The landlord can file an eviction lawsuit if the tenant fails to correct the violation within three days.

Serious Unfixable Lease Violations

The landlord may give the tenant an unconditional three-day notice to quit if the tenant violates the lease or does something that cannot be corrected. The notice informs the tenant that the rental unit must be vacated within three days of receiving it. Landlords can file eviction lawsuits if a tenant fails to move out within three days after they discover the violation. 

In California, landlords can use three-day unconditional quit notices only when the tenant:

  • Sublet or assign the rental unit in violation of the lease
  • Inflicted substantial damage to the property
  • Permitted or caused a nuisance in the rental unit
  • Was involved in illegal activity on the rental property

Should You Evict?

Despite being legal, evictions are complicated and can get messy. Regardless of the circumstances, it is always a good idea to give your tenants notice before listing your property. By taking this step, they will be able to come up with alternative living arrangements and avoid future conflicts.

The Options When Selling a House with Tenants

You have a couple of ways to sell a house with tenants. You can list it on your own, hire a real estate agent, or sell the house for cash.

List It on Your Own

First, you can sell the house on your own by advertising online, distributing flyers, or posting a For Sale sign. You may find this option convenient if you feel comfortable handling the marketing, negotiation, and closing of the sale of your home. By avoiding real estate commissions, you’ll also save money.

Hire a Real Estate Agent

You don’t have to worry about paperwork or anything else if you’re working with a real estate agent. When your house sells, you’ll likely be charged a fee, and the procedure might also take many months before a transaction is complete.

Sell the House for Cash

Another alternative is to sell your house to a cash home buyer company. This is an excellent choice if you need to sell your property fast and don’t want to deal with the bother of showing it or bargaining with purchasers. When you sell your house to a cash home buyer, they will give you an offer on it as-is. This means that you won’t have to make any repairs or renovations before selling.

What to Do Before Listing a House for Sale with Tenants

Before listing a house for sale with tenants in California, there are a couple of things you need to keep in mind:

  1. Verify that there are no limitations in your lease agreement regarding the sale of the property.
  2. Give your tenants plenty of notice before any showings or open houses.
  3. Make sure that the house is presentable and clean before potential buyers come to take a look; this includes making any necessary repairs.

How to Show a House with Tenants

When it comes to showing your house, you’ll have to work around the schedules of your tenants. This means you will likely need to schedule a showing during the evening or weekend. It is also essential to keep the house clean and tidy before each showing. Making arrangements to keep pets out of the house during showings is also necessary if there are pets.

Closing Tips When Selling a House with Tenants

When you’re ready to close on the sale, there are a few things to keep in mind to comply with California’s landlord-tenant laws.

First, you’ll need to provide your tenants with a notice at least 30 days before the sale of the property. This notice must be in writing and served either personally or by posting it in a conspicuous place on the property. Once you have served this notice, you can then proceed with the sale and close on the property.

After the sale is complete, you’ll need to provide your tenants with a final statement that includes the name and address of the new owner as well as the date of possession. This statement must be provided within 21 days of the sale.

Finally, it’s important to remember that you are still responsible for the property until the date of possession listed in the final statement. This means you must maintain the property and make any necessary repairs during this time.

Favor Home Solutions: A Hassle-Free Alternative

Selling a house with tenants can be a complex and lengthy process. Avoid the hassle and headaches by selling your home to a trusted home buyer company! At Favor Home Solutions, we provide competitive cash offers and work with you every step of the way so you can sell your house quickly and stress-free. When you work with us, you won’t have to worry about paying hidden commissions or making repairs to the house. Let’s get started!


More Related Posts

Find Out How We Can Help

Enter Your Address To Get Started