The answer to this question is determined by many different factors, including the type of property you are selling, the city in which the property is located, local rent control ordinances and the length of time the tenant has been in the property. I’m going to treat this scenario as a single-family home, not under rent control, with tenants on an existing lease.
If the intention is to close your home sale without the tenants in place, the first step is to give them notice that you do not plan on continuing their tenancy. You’ll need to give 30 days’ notice if they have lived there less than a year and 60 days’ notice for a year or more. Legally, you may proceed with listing the house while the tenants are still living in the property. However, this can pose significant marketing challenges.
With tenants in place, you have very little control over how the property looks for showings. It complicates your ability to do pre-marketing prep work such as painting, cleaning and staging, and these steps are extremely important if you are trying to maximize your profit. Your tenants would need to cooperate with your requests for showings, which need to be made at least 24 hours in advance. They are under no obligation to tidy the house or leave the property during showings. Listing with tenants in place can also be a red flag for buyers who want to owner occupy, because they may be concerned about the possibility of the tenants refusing to leave.
The bottom line is if you are looking for the highest possible sale price, and your tenants only have one month left on their lease, your best option is likely to wait until the property is vacant to put the home on the market. That being said, if you absolutely need to sell as quickly as possible, an experienced Realtor can help you to navigate a tenant occupied property sale to minimize the impact of these challenges as much as possible.
Kari Carson
DRE #01903828
(818) 424-5537
Neighborhoods Served: La Canada Flintridge, La Crescenta, Montrose, Glendale, Pasadena, Eagle Rock, Highland Park, Greater LA area
