How To Sell A House With A Problem Tenant

The most popular reason we’ve encountered for landlords wanting to sell their homes with tenants is for non-payment of rent. A close second is that the tenant is causing damage to the property either by having pets in violation of the lease, making unauthorized alterations or even (as we’ve heard in one case) using the home as a puppy mill. Whatever has gotten you to the point where you have decided to sell, your path forward should carefully consider a series of do's and don’ts. Your objective here is to incentivize your renter to work with you (or at a minimum not hinder you) in getting the property sold.

    Let’s talk about the do's:

  1. Keep Your Cool

    2. The last thing you want to do is get into any sort of confrontation or heated argument with anyone who is currently occupying one of your valuable assets. Always speak calmly and pleasantly regardless of how frustrating or vexing the existing situation is. Keep the same tone in written communication and avoid any condescending or abusive language.

  2. Attempt A Reset

    3. If the relationship with your tenant has become toxic or confrontational, extend an olive branch and attempt a reset. “Hey, I really regret that things have gotten this bad between us and I’d really like for us to try again or start over”. Your objective here is to disarm your tenant so that he/she can be a partner in helping you get your property sold rather than a hindrance.

  3. Reassure Your Tenant

    4. In many jurisdictions, when you sell a rental property, the new owner has to honor any leases in place. Provided you have decided to inform your tenant about your plans to sell the home, reassure them that the terms of the lease cannot change and the new owner will have to abide by them. (Check your local tenant laws on tenant rights after a sale to confirm this applies to your jurisdiction).

  4. Work on your tenant’s schedule

    5. As much as possible, attempt to work within your tenant’s schedule in setting up showings. The last thing you want is an annoyed tenant (an already problematic one to boot) making viewings particularly awkward or uncomfortable because they were surprised or had their privacy needs ignored.

  5. Offer Cash for Keys

    6. This applies if you have decided that you would like the tenant to move out before selling the property. It may sound counter intuitive but many real estate investors have used this method to amicably encourage problem tenants to move out. Offer your tenant money if they would agree to terminate the lease, move out by a particular date and not do any damage to the property. Yes, you read that right. Even if your tenant is owing you money, consider offering them a sum of money (say $500), in exchange for agreeing to terminate the lease and moving out. Although this may be a difficult pill to swallow, that $500 will be way less than it may cost you to complete the eviction process and repair any retaliatory damages caused by an angry tenant.

    Now let’s talk about the don'ts:

  1. Don’t retaliate against your tenant

    2. It’s easy to be tempted to get back at your tenant for whatever slight you have been enduring. Especially in cases of non-payment of rent, you may actually feel justified in some retaliatory actions. Here’s of quick list of how not to get back at your tenant:
    • Do not shut off utilities
    • Do not change the locks
    • Do not have their belongings thrown out on the front lawn
    • Do not refuse to perform needed repairs that may risk the safety of the home’s occupants and guests
    The reasons for not doing anything on the above list may vary from case to case, but generally speaking, many jurisdictions have laws against creating inhospitable, unsafe or uncomfortable living conditions even if you are not being paid rent. You may even find yourself liable for financially compensating your renter for any of the above infractions.

  2. Don’t threaten your tenant

    3. Threatening your tenant with eviction or lawsuits (even if you may be justified) is likely not going to help in your goal of getting the property sold as smoothly as possible. Someone who hasn’t paid your rent in six months is likely not going to suddenly have a change of heart when threatened with being kicked out of their home.

  3. Don’t withhold information from prospective buyers

    4. You may think it’s in your best interest to not inform potential buyers of the issues you have been having with your tenants. You would be wrong. In the world of real estate, you would be wise to disclose anything that would influence the decision of potential buyers. Be sure to document any such disclosure in writing so that you have evidence.


Remember, your goal here is to get your property sold, not get back at your tenant for any unfair or financially damaging actions they have taken towards you. Keep a cool head, be thoughtful and you might be well on your way to selling that rental house with the problem tenant in no time.