Selling an Occupied Rental Property in New York
Have tenants living in your New York rental property but need to sell? You don’t have to wait for the lease to end or force anyone out. Learn how to sell a tenant-occupied property the simple way — for cash, as-is, on your timeline.
Quick Answers
Can I sell my rental while tenants live there?
Yes. In New York, a property can be sold with an active lease in place. The lease transfers to the new owner, who becomes the tenant’s landlord.
Do I need to evict my tenants first?
No. A valid, existing lease survives the sale. You cannot evict a tenant simply to make a sale easier, and doing so can create legal liability.
What about month-to-month tenants?
Ending a month-to-month tenancy in New York requires 30, 60, or 90 days’ written notice depending on how long the tenant has lived there.
Will tenants lower my offer?
Cash buyers who purchase rentals as investments often prefer tenant-occupied properties with rent already coming in, and will buy as-is with tenants in place.
Selling a Rental Property Without Ending the Lease
In New York, a lease is a binding contract that runs with the property, not with the owner. When you sell a rental property, the existing lease transfers automatically to the new owner, who steps into your shoes as landlord and must honor the remaining lease term, including the rent amount and any renewal rights.
If your tenant is month-to-month rather than under a fixed lease, New York Real Property Law § 226-c requires written notice to end the tenancy: 30 days if the tenant has lived there less than a year, 60 days if between one and two years, and 90 days if two years or more. This notice period applies whether you or a new owner intends to end the tenancy after closing.
If the unit is rent-stabilized or rent-controlled — common in New York City — those protections attach to the apartment itself, not to you as the owner. A buyer takes the property subject to the tenant’s stabilized status and must continue honoring it after closing.
Sell With Tenants in Place vs. Wait for Vacancy
Wait for Vacancy & List Traditionally
- Lease must expire or tenant must move out
- Lost rental income during vacancy and prep
- Repairs and staging before listing
- Agent commissions and closing costs
- Uncertain timeline tied to buyer financing
Sell As-Is With Tenants in Place
- No need to end the lease or ask tenants to leave
- Rent roll can continue uninterrupted
- No repairs, showings, or staging required
- No commissions or hidden fees
- Closing date built around your schedule
Security Deposits, Notice, and Tenant Rights in New York
New York General Obligations Law requires that a tenant’s security deposit be handled carefully when a rental property changes hands. At closing, the deposit is typically transferred to the new owner, who becomes responsible for holding it and returning it at the end of the tenancy. Tenants should be notified of the change in ownership and where their deposit is being held.
Tenants generally have the right to reasonable advance notice before a landlord, buyer, or agent enters the unit for showings or inspections. Building this into your closing plan helps keep the transaction smooth and avoids disputes with tenants during the sale process.
What Happens When You Sell an Occupied Rental Property
1. Tell Us About the Property & Lease
Share some quick details about the property, the tenant, and the current lease terms.
2. We Review the Lease & Rent Roll
We look at the lease, rent amount, and payment history to understand the full picture.
3. Get a No-Obligation Cash Offer
We present a fair, no-obligation cash offer based on the property and its current tenancy.
4. Choose Your Closing Timeline
Pick a closing date that works for you — no need to coordinate around a vacancy.
5. Close and Transfer the Lease & Deposit
We handle the paperwork to transfer the lease and security deposit to us at closing.
A Simpler Way Forward
Sell As-Is, Tenants and All
No need to end leases, evict tenants, or wait for vacancy.
No Commissions or Fees
Keep more of your sale price with no agent commissions or hidden fees.
Flexible Closing Date
Choose a closing date that fits your schedule and the tenant situation.
Help Reviewing Your Lease & Rent Roll
We’ll help you understand how your lease terms affect the sale.
No Obligation to Accept
Review your cash offer with zero pressure or obligation to move forward.
Frequently Asked Questions
Can I sell a rental property in New York while tenants still live there?
Yes. You can sell at any time, and the existing lease transfers to the new owner, who becomes the tenant’s new landlord.
Do I need to end the lease or evict my tenants first?
No. A valid lease remains in effect after the sale. You cannot evict a tenant simply to make the property easier to sell.
What happens to the security deposit when I sell?
The deposit is generally transferred to the new owner at closing, who becomes responsible for holding and eventually returning it to the tenant.
Do my tenants need to be notified about the sale?
Yes, tenants should be informed of the change in ownership, including where their security deposit is now held.
What if my tenant is rent-stabilized or rent-controlled?
Rent stabilization and rent control protections attach to the unit itself. A buyer must continue honoring those protections after the sale.
How much notice do I need to give a month-to-month tenant?
New York law requires 30, 60, or 90 days’ written notice depending on how long the tenant has occupied the unit.
Will I owe capital gains tax on the sale of a rental property?
Rental and investment properties are typically subject to capital gains tax, and a 1031 exchange may help defer it. We recommend speaking with a tax professional about your specific situation.
How is the cash offer calculated for a tenant-occupied property?
We consider the property’s condition, current rent, lease terms, and comparable sales in your area to arrive at a fair cash offer.
Ready to Sell Your Tenant-Occupied Rental?
Get a no-obligation cash offer today — no need to end the lease or wait for vacancy.
Get My Cash Offer