- Los Angeles property owners who are interested in selling their rental properties are often requested by buyers to can deliver the property without the tenant(s)
- By declaring to deliver a property free of tenants, the seller attracts a larger pool of buyers and potentially a higher sale price
- Consider the below steps on tenant relocation assistance and determine if it will be straight forward or if you would prefer to discuss your situation with Fair Sale Homes
Can I Sell My House With A Tenant?
Yes, you can absolutely sell your house with a tenant. If you decide to keep the tenant in place, keep in mind that during the sales process, the tenant will need to provide access to the inside of the property during the process:
- Buyer walkthrough, photography, and showings
- Property inspection, on the buyer’s behalf
- Appraisal, if the buyer is qualifying for a conventional loan
If you have a cooperative tenant who takes good care of the property and pays their rent on time, selling your house with a tenant in place should go smoothly. If think your tenant might be uncooperative during the sales process, you might want to make your house sale plans known and ask them if they would accommodate your timeline for vacancy.
Benefits of Selling A Vacant House
If you have a tenant who pays regularly and follows the obligations of their lease, then there’s really no cause for eviction. That said, if you would like to help the tenant relocate before the sale, consider the below guidance on tenant relocation assistance. The benefit to the seller is that a vacant property would attract a larger pool of potential buyers because process to repair and develop the property would be easier without having to coordinate around the tenant.
As your digest the below on tenant relocation assistance, consider that the below is provided based on experience in the State of California, Los Angeles County, and the City of Los Angeles. In other counties or cities, many of the below steps might still apply.
A Guide To Relocating Tenants
This is a guide to respectfully discuss relocation with a tenant. This assumes that a tenant might consider moving on to a new living situation, so offering them cash as assistance might align your timeline with theirs. So if your tenant is interested in some help from you, read on…
That said, if you’re still exploring how to get your property vacated to increase your pool of buyers, a common option in Los Angeles is to help your tenant by offering payment which would assist with relocation. Some tenants use the relocation cash (aka “cash for keys”) as a down payments towards the purchase of their own property, a down payment towards the purchase of a car, or hold onto it to shore up their savings as they move into a better housing situation.
In California, Los Angeles County, and the City of Los Angeles, this practice is regulated and provides tenants protection from relocation offers that are predatory. Whether the rental house or rental unit is under RSO or JCO, there is a minimum payment that tenants are due depending on how long they’ve rented at the particular address. Below are some resources, so you can fully understand the laws and details.
| Laws | Description |
| AB1482 State Rent Control in the State of California | Assembly Bill 1482 (AB 1482, the California Tenant Protection Act of 2019) is a new State law effective January 1 , 2020. |
| Rent Stabilization Ordinance in the City of Los Angeles | If you rent in the City of Los Angeles, your rental unit may be subject to the City’s Rent Stabilization Ordinance (RSO), if the property was built on or before October 1, 1978. Units constructed after July 15, 2007 that replace demolished RSO rental units may also be covered under the RSO. |
| Just Cause Ordinance in the City of Los Angeles | If you own rental property in the City of Los Angeles, it may be subject to the Just Cause Ordinance (JCO). It prohibits terminations of tenancies without just cause and requires relocation assistance for no-fault evictions |
| Section 8 with Los Angeles County Housing Authority | The Section 8 Housing Choice Voucher Program which helps low-income families afford housing in the private rental market. The program helps eligible families afford safe, decent, high-quality rental housing. Participants rent housing from private landlords, paying a portion of their income towards rent while the covers the rest through funding received from the U.S. Department of Housing and Urban Development. |
Plan To Sell Your House
Make a plan of what needs to get done in order to sell your house in Los Angeles the timeframe that you desire.
- Pull together your paperwork to prepare to sell your house
- Make a list of repairs you might need to make to attract buyers
- Determine the price range you’d like to sell your house
- Establish a desired date to close the sale
- Find an agent or talk to direct buyers like Fair Sale Homes
Discuss Goals and Options With Your Tenant
- Before reaching out, consider how much money you required to offer for relocation
- Share your intent and timeline to sell the property with the tenant
- Ask the tenant if they have any interest in moving with assistance
- If there’s some interest, indicate the amount you can provide
- Share and leave the relocation assistance materials with your tenant
- RSO Units: Relocation Assistance and Required Notices
- JCO Units: Relocation Assistance and Required Notices
At this point, your have shared your goals, willingness to assist, and provided the materials so that your tenant further consider your offer. Now, the decision is up to your tenant.
Agree to Relocation Terms With Your Tenant
- Discuss and mutually agree on the dollar amount (upfront, remainder) and move-out date
- Determine whether and how much of the deposit will be returned
- Secure a qualified attorney to draft the tenant relocation agreement
- Meet with your tenant to review the relocation agreement with them
- Have them sign the relocation agreement, then give them the upfront
Show Up On the Move Out Date
- Meet with tenant to verify the property is vacant and pickup the keys
- Once verified vacant, deliver the remaining relocation balance (usually cashier’s check)
- Get the tenant’s signature that the remaining balance has been delivered
- Secure the property by changing the locks
- Continue with the sale of your home
Consider Working With An Experienced Home Buyer
Whether you want some guidance on tenant relocation or you’re perfectly fine with selling the house with the tenant remaining in place, The professional buyers at Fair Sale Homes are waiting to help you if you want to sell your Los Angeles. Talk to one of the local seasoned professional buyers at Fair Sale Homes today and find out how we can help you solve your home selling problems.
Call Fair Sale Homes at (626) 863-7006 to schedule your appointment and receive a fair offer.