How to Sell Your Rental Home to an Investor

Selling a home that is rented requires the seller and his or her agent to consider many factors that are not relevant when selling and delivering a property that will be unoccupied. The reason is that the seller, investor-buyer, and tenant have their own interests to protect and those interests may conflict if the sale is not handled by an expert. The various interests are as follows:


The seller wants to collect rent until the day of closing and does not want the tenant to give notice or vacate the property during the sales and escrow process. If the tenant vacates or gives notice, the seller may lose rent, will be required to return the tenant’s security deposit, pay certain costs in connection with the tenant moving, and deal with the investor-buyer who wants a rent paying tenant from the first day after closing.


The tenant wants the assurance that he or she will not be asked to move out in connection with the sale, or if moving becomes necessary, that he or she will receive adequate notice and reasonable compensation. Absent receiving assurance from the seller that the tenant will be reasonably protected, the tenant will protect his or her own interests which usually means giving notice to vacate and looking for another rental home. Most tenants prefer to receive an extended lease from the seller before the property is offered for sale and the assurance that the property will be marketed to investors.


The investor-buyer wants a tenant with a good payment history to stay in the property so that rent is earned from the first day after the close of escrow and costs are not incurred to get the property ready for another tenant. represents both buyers and sellers of rental properties and manages rental homes through Southern California We are constantly seeking buyers and sellers of rental homes and can assist you whether you are selling or buying. We are experts at handling investment home sales and 1031 Tax Deferred Exchanges. Let us put our expertise to work for you.



Due-on-Sale Clause