You don't have to empty the house first
Selling to a regular buyer usually means waiting out the lease, making repairs, and holding showings around the people who live there. A buyer who purchases rentals as investments can take the house with the tenants in place and the condition as it is.
The tenants' rights don't disappear because the house is sold. The lease and local rules still apply, and the walkthrough happens with proper notice to the tenants.
Your options as a landlord
| What it involves | Best when | |
|---|---|---|
| Sell with tenants in place | One walkthrough with notice; as-is; close in about 1–3 weeks | You want out now, the house needs work, or the lease runs a long time |
| Wait for the lease to end, then list | Months of carrying costs, then repairs, cleaning and showings | The house is in good shape and the lease ends soon |
| Offer it to your tenant | Only works if they can get financing | Your tenant wants to buy and can qualify |
What to have ready
- Current lease(s) and any renewals or side agreements
- Rent amount, payment history and security deposit held
- Repair and maintenance records
- Any open code or licensing notices from the city or county
- The state disclosure form (Maryland: Seller's Disclosure and Disclaimer Statement; DC: Seller's Property Condition Disclosure; Virginia: Residential Property Disclosure Statement), plus the federal lead-paint disclosure for homes built before 1978
Before you sign anything
Rules for tenant-occupied sales differ between Maryland, DC and Virginia, and DC has the strictest. Under DC's Tenant Opportunity to Purchase Act (TOPA), tenants generally must get written notice and a chance to buy before a rental is sold. Since 2018, most single-family rentals are exempt from the purchase right, but elderly and disabled tenants can still have it, and the owner still has to send tenants the required notice. In buildings with two or more units, tenants' full TOPA rights apply, which can add months to a sale.
Leases generally stay in force when a rental is sold, so a buyer takes over the existing tenancy. Have a local real estate attorney confirm what applies to your property and lease before you sign a contract with anyone. This is general information, not legal advice.
Questions people ask
Will my tenants have to move out when you buy the house?
No. We can buy the house with the tenants in place, subject to their lease and local law. What happens after the sale follows the lease and the rules where the house is.
Do I need to fix things the tenants damaged?
No. We buy as-is and price the repairs into the offer. You still need to disclose known material defects on the state disclosure form.
Do my DC tenants have a right to buy the house first?
Sometimes. DC's Tenant Opportunity to Purchase Act (TOPA) gives tenants notice and purchase rights in many sales. Most single-family rentals have been exempt since 2018, except for elderly and disabled tenants, and notice is still required. Buildings with two or more units carry full TOPA rights. Confirm your case with a DC real estate attorney.
Are there tax issues when selling a rental?
There can be, especially with depreciation and capital gains on investment property. Talk to a tax professional before you sell.
Are there any fees or commissions?
No agent commissions and no hidden fees. In most of our purchases the seller's closing costs are covered, so the offer you accept is very close to the cash you walk away with. We put the numbers in writing before you sign.
Do I have to clean out the house or make repairs?
No. We buy as-is. Leave behind anything you don't want. Sellers must still disclose known material defects on the state disclosure form, even in an as-is sale.
Is a cash sale always the best option?
No. If the house is in great shape and you have months to spare, listing it may net more, and we'll tell you so. A cash sale trades some top-line price for speed, certainty and no out-of-pocket costs.
General information, not legal, tax or financial advice. Parlevu Global Services LLC is a real estate investment company that buys homes; we are not a law firm or a brokerage. We treat every homeowner the same and follow fair housing laws. Prefer to talk it through? Book a free call.