• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Facebook
  • Twitter
  • YouTube

Owner Login | Tenant Login | 323-255-9400 ext. 4   GET A QUOTE

Los Angeles Property Management Group offering residential, luxury, and commercial property management in the Los Angeles area

Los Angeles Property Management Group

Property management in Los Angeles & the Valley, done right.

  • Services
    • Residential Property Management
    • Luxury Property Management
    • Commercial Property Management
    • Get A Quote
    • Why Agents Trust Us
  • Why Choose LAPMG
    • Mission Statement
    • Recent Reviews
    • Awards and Recognition
    • Our Team
  • Articles
    • David Crown in Forbes
    • Case Studies
    • Industry Blog
  • Areas Served
  • Careers
  • Contact
    • Contact Us
    • Portal Logins
    • Prospective Tenants
    • Our Team
    • Owner FAQs
    • Resident FAQs
    • Privacy Policy

Tips For Buying Or Selling A Rental Property Occupied By Tenants

April 17, 2018 LAPMG

Rental Property Online

According to a study by BiggerPockets, about 3% of Americans are actively looking to buy a property within the next twelve months. This percent amount to about 9.5 million people that are looking forward to buying a rental property within the next one year. However, most of these properties still have tenants occupying them.  From Burbank and Woodland Hills, to Los Angeles to Westlake, properties like this can be found.

If you are among this group of real estate investors who want to buy or sell a property, you may face a problem in which you still have tenants on these properties. In this article, you will learn how to sell or buy a rental property with current tenants.

What To Do If You Are Buying a Rental Property With Tenants Still Occupying Them

There are some leases with a clause that gives the new landlord the authority to terminate the lease when the property is sold. However, a tenant must have at least 30 days notice. If a lease has this clause, it means the owner of the property could terminate the lease even before selling to the new buyer.

However, in most cases, fixed-term leases do not expire when a rental property is sold. Instead, the previous owner will transfer the lease to the new owner.

 

Should You Buy a Property With Tenants Presently Occupying Them?

Buying a rental property with tenants living in the property could be a great investment. If you want to rent the property to tenants, this means you already have the tenants you need and won’t need to start looking for new tenants. It will help you save time and money on looking for new tenants and screening them.

However, there are cases where you may not like some of the tenants especially if the previous owner has done a poor job of screening the tenants. In this case, you may consider terminating the lease of some of these bad tenants.

On the other hand, if you wish to use the property for other purposes apart from renting it to tenants, it may not be a good idea to buy a rental property with current tenants.

 

 

How To Find Out About the Quality of Current Tenants

There are some steps that can help you to find out if your current tenants are quality tenants. These steps include:

  • Inspect the quality of the property. If it is still in good condition, it means your current tenants are responsible and treat your property with respects.
  • Another way is to demand receipts of payments from the previous owner. This will help you to know the tenants that are paying their rent promptly.
  • You can also demand the existing lease from the previous tenant for a review.
  • As a new owner, you can demand that the previous owner transfer the security deposit to you.

Note that it is your responsibility to transfer the full security deposit to your tenants whether the previous owner returns their security deposits to you or not. It is therefore recommended that you request for security deposits as a condition of the sale from the previous owner.

Before paying for the property, make sure you obtain receipts, lease, and security deposits as “condition of the sale”. It will become hard to obtain these after paying for the property.

 

What To Do If You Are Selling Rental Property With Tenants Presently Occupying The Property

You will definitely need the cooperation of your current tenants when you want to sell your property. You should be honest with them. Don’t try to shroud this process in secrecy. Come clean and let them know why you are selling the property. If you are honest with them, they will help you to make this process a lot easier.

When you sell your rental property with current tenants, the new owner will inherit the rental lease and security deposits. He now has the right to review the lease and even terminate lease agreement. It is also your responsibility to let your current get important information like:

  • The name of the new owner
  • The contact information of the new owner
  • Where and how to pay their rent moving forward
  • The amount of security deposit transferred to the new owner.

What To Do If You Don’t Want To Sell Your Property With Current Tenants?

If you don’t want to sell your property with current tenants, you have the option to wait until your rental lease expiration. You can now put up your rental property for sale at the expiration of the lease. This option makes it easier to show the property to prospective buyers.

Note that there are some leases with a clause which gives the owner the right to terminate a lease at least 30 days in advance. When you decide to cancel the lease, you must let your tenants know on time. You should also give them time to find new rental property.

Author

  • LAPMG

    View all posts

Filed Under: Commercial Properties, LA Property Management News, Latest News, Projects, Property Management Education, Property Management FAQ, Residential Properties Tagged With: Burbank Property Management, commercial property management los angeles, Los Angeles property management companies, Property Management, San Fernando Valley property management, Studio City Property Management

Primary Sidebar

    PROPERTY OWNERS: CONTACT US FOR A FAST FREE QUOTE

    (This space is not for tenant contact. Check out our listing page.)







    Loading...

    Footer

    Award-winning management means:

    Best property management in Los Angeles - Our Awards

    • Maximum profits.
    • Responsive service.
    • Vacancies filled quickly.
    • Accurate understandable monthly reports.

    Proud Members of:

    AAGLA AOACA AIR Commercial Real Estate Association Member BOMA 2024 Member of Forbes Real Estate Council Great place to work

    Contact Information

    
    

    YouTube LAPMG   Facebook LAPMG   Twitter LAPMG   Los Angeles Property Management Group on Google Maps

    Los Angeles Property Management Group
    10960 Ventura Boulevard Second Floor
    Studio City, CA, 91604
    Phone: 323-255-9400
    Contact Us

    Los Angeles Property Management Group is a licensed real estate broker, State of California, DRE License Number 01931033.

    Los Angeles Property Construction Inc. is a licensed contractor, State of California, Contractor State License Board Lic. # 1050649.

    Kyle Crown DRE License #0193638
    David Crown DRE License #01157354

    © 2025 Los Angeles Property Management Group · Privacy Policy
    10960 Ventura Boulevard Second Floor, Studio City, CA 91604 · Phone: (323) 255-9400
    LAPMG is committed to ensuring digital accessibility for people with disabilities. We are continually improving the user experience for everyone and applying the relevant accessibility standards. If you have any issues, please contact dcrown@lapmg.com.