Selling a Rental Property With Tenants in Florida

What happens to the lease and the deposit when a rental changes hands, and how to decide between selling occupied and selling vacant.

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Quick answer

Yes, you can sell a Florida rental while tenants are living in it. Selling does not end a lease: a tenant with a fixed-term lease generally keeps the right to stay until it expires, and the buyer becomes the new landlord. Your real decision is whether to sell with the tenant in place, usually to an investor, or to wait until the property is vacant and sell to a wider market. That depends on the lease, the condition of the house and how much longer you want to be a landlord.

Why landlords decide to sell

The reasons we hear most: repairs that keep getting more expensive, a tenant who pays late or damages the property, rising insurance and tax bills that the rent no longer covers, managing a property from another city, or simply being ready to stop. None of these makes you a bad landlord. They are reasons to look at the numbers.

What the lease means for a sale

Residential tenancies are governed by Chapter 83, Part II of the Florida Statutes, the Florida Residential Landlord and Tenant Act. Start by reading your lease and identifying which kind of tenancy you have.

A fixed-term lease

If the tenant has a written lease with an end date, a sale generally does not change it. The buyer takes the property subject to the lease and has to honor its terms. Some leases include a clause about what happens on a sale. If yours does, follow it exactly.

A month-to-month or other periodic tenancy

Where there is no fixed term, either side can end the tenancy by giving written notice. Section 83.57 sets the minimum notice: for a month-to-month tenancy, not less than 30 days before the end of a monthly period, and for a week-to-week tenancy, 7 days. Some local ordinances and some leases require longer notice, so check both before sending anything.

Showing the property

A tenant’s home is still their home during a sale. Section 83.53 lets a landlord enter to show the unit to prospective buyers, with the tenant’s consent, which the tenant cannot unreasonably withhold. For repairs, the statute defines reasonable notice as at least 24 hours, at a reasonable time. Giving the same courtesy for showings, and agreeing set times in advance, keeps things civil and usually produces a better-presented house.

The security deposit

Under section 83.49(7), when a rental is sold, the tenant’s security deposit and any advance rent must be transferred to the new owner, together with any earned interest. In practice this is handled as a credit at closing, with the tenant told in writing who now holds the deposit. Have your deposit records and a current rent ledger ready for the buyer.

What you cannot do

Wanting to sell is not grounds for a shortcut. Florida law prohibits a landlord from forcing a tenant out by cutting off utilities, changing locks or removing doors or belongings. A tenant who will not leave when a tenancy has properly ended has to be removed through the court eviction process. If you are heading toward an eviction, talk to a landlord-tenant attorney before you do anything else, because mistakes in the notice can send you back to the start.

Selling occupied or vacant

Sell with the tenant in place

Good when the tenant pays on time and the lease has months left. An investor buyer gets rental income from day one and you collect rent until closing.

Tradeoffs: most owner-occupant buyers are ruled out, showings depend on the tenant’s cooperation, and below-market rent can hold the price down.

Sell after the tenant moves out

Good when the lease is ending soon, the house would appeal to owner-occupants, and you can afford a gap with no rent.

Tradeoffs: vacancy costs, turnover repairs and cleaning, and you carry the house until it sells. See our guide to selling a vacant house.

Offer the tenant an incentive to move

Good when you need the house vacant before the lease ends and the tenant is willing. A written agreement with a move-out date and a payment, sometimes called cash for keys, can work for both sides.

Tradeoffs: it is voluntary. The tenant can say no, and the agreement should be in writing and signed.

Sell as-is to a cash buyer

Good when the property needs work you do not want to fund, the tenant situation is difficult, or you want a firm closing date.

Tradeoffs: usually a lower price than a vacant, repaired, listed sale. The buyer takes on the repairs and the existing tenancy.

Get your paperwork together

Whichever route you choose, buyers will ask for the same things, and having them ready makes a real difference:

  • The signed lease and any renewals or amendments
  • A rent ledger showing what has been paid and what is owed
  • The security deposit amount and where it is held
  • A list of recent repairs and known problems
  • Utility arrangements: who pays what
  • Any notices you have given or received

Run the numbers

Compare what you would keep from each route after repairs, turnover, vacancy and selling costs. The cash sale vs traditional sale calculator includes monthly holding costs and repairs, which is where vacant-versus-occupied decisions are usually won or lost. Sales of investment property can also have tax consequences, including depreciation recapture, so speak with a tax professional before you sign.

Official resources

Related guides

County and city offices by area:

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This guide is general information, not legal or tax advice. Notice periods, lease terms and local ordinances vary, and the statutes are amended from time to time. Check the current law and speak with a Florida landlord-tenant attorney before ending a tenancy or starting an eviction.