How Can You Sell a Property With Tenants Still Living There?

By Rachael Richards

Rachael has been a top real estate agent in the Phoenix area for over 20 years. She and her team are consistently in the top 1% and have worked through all types of markets. Selling over 200 homes each year while maintaining a core value that clients come first, Rachael and her team have a wealth of experience and industry knowledge.

If you own a rental property with a tenant in place and you want to sell, the first step is not waiting for the lease to end or listing the property right away. Many landlords think these are the only options, and this can lead to missed opportunities, longer timelines, and less profit. The best move is to review all available selling strategies and choose the one that fits your goals, lease terms, and financial needs. There are three proven approaches that work well for property owners in this situation:

1. Offer the property to your current tenant. Your tenant is already familiar with the home and may want to own it. The next step is to connect them with a lender to determine if they qualify for a mortgage. In some cases, the seller can carry the loan if they do not need the full equity immediately. This creates a direct sale without having to list the property or disrupt the tenant’s living situation.

2. Sell to another investor. This option allows the buyer to take over the lease and keep your current tenant in place. It works best when the rental income and purchase price align with the investor’s return goals. This can be harder to arrange because investors are focused on strong financial performance. However, if the property’s income is solid, it can still be a viable path.

3. Incentivize your tenant to cooperate. This is the most common approach for landlords who want to reach a wider pool of buyers. You can offer one month of free rent or help with moving costs. In return, the tenant can allow showings or adjust lease terms to give you the flexibility to list on the open market. This increases buyer competition and can help you secure a better price.

Choosing the right selling strategy puts you in control. It gives you the clarity, direction, and confidence to sell your rental property in a way that works best for you. Each option offers a different advantage. Selling to your tenant can be quick and private, while selling to another investor can keep rental income steady until closing.

If you’re planning to sell, call or text me at 480-270-5782 or email me at info@rhouserealty.com. I will walk you through your options and help you prepare every step of the way.