A tenant is months behind, will not leave, or has damaged the house. Going to court costs attorney fees, takes months, and may not recover the rent. Many landlords simply sell. We buy houses while the tenant is still living there.
Selling a house with tenants: what the law says
- The lease goes with the house. The buyer takes over the lease; a tenant does not lose rights just because the owner changes.
- The security deposit is transferred to the new owner at closing, with notice to the tenant.
- No self-help eviction: changing locks, shutting off utilities, or removing a tenant's belongings is illegal in California, even if the tenant owes rent.
California tenant protections
The Tenant Protection Act (AB 1482) covers many rentals: it caps annual rent increases, and tenants who have lived there over 12 months can usually only be terminated for "just cause." Some single-family homes owned by individuals are exempt if the lease includes the proper exemption notice.
Some cities, including Santa Ana, have stricter local rules on rent and reasons for termination. Landlords should ask an attorney before serving any notice.
Tenant not paying: the court path
- Serve a proper 3-day notice to pay rent or quit
- File an unlawful detainer lawsuit in court
- The tenant answers and may go to trial
- After a judgment, the sheriff carries out the lockout
If the tenant fights it, it often takes months and attorney fees. Meanwhile you keep paying the mortgage, taxes, and insurance.
"Cash for keys" agreements
A gentler route: the owner pays the tenant a sum to move out voluntarily by a set date, documented in writing. Some cities have their own rules for these agreements. After we buy, we can handle the conversation with the tenant ourselves if you want.
Rentals we buy
- Single-family homes with tenants
- Duplexes, triplexes, and fourplexes (2–4 units)
- Houses with an ADU or separate rental room
- Condos and townhomes with tenants
Have these ready when you call
- The lease for each unit, monthly rent, and deposit
- How many months the tenant is behind
- Any notices already served
- Court filings, if a case has been opened
Questions
Do you need to see inside the rental?
It helps. The landlord must give the tenant notice by law (usually 24 hours in writing). If the tenant will not cooperate, we can still make an offer based on the exterior and what you know.
Can I sell in the middle of an eviction case?
Yes. The case is handled according to your attorney and the agreement between the parties. Call us and we will look at the specifics.
The tenant has damaged the house a lot. Will you still buy?
Yes. We buy as-is and factor repairs into the offer.
How are last month's rent and the deposit handled?
Escrow prorates rent to the closing date and transfers the deposit to the new owner. Every figure is on the escrow statement.