How to Sell a Rental Property with Tenants in Florida (2026)
Last updated: February 2026
Tired of being a landlord? Here's how to sell your rental property—even with tenants still in place—without violating anyone's rights.
Written by Max Cohen
Licensed General Contractor #CGC1534000 · Florida real estate since 2014
Quick Answer
Can you sell a rental property with tenants in Florida? Yes. You can sell at any time. The lease transfers to the new owner, who must honor it. You cannot evict tenants just to sell (unless they've violated the lease). Month-to-month tenants get 15 days' notice. Cash buyers like FL Home Buyers buy with tenants in place—no need to wait for leases to expire, deal with showings, or navigate difficult tenant situations.
Table of Contents
Florida Tenant Rights When a Rental Property Is Sold
Florida's Residential Landlord-Tenant Act (Chapter 83, Part II) protects tenants when a rental property changes ownership. Here's what you need to know:
Key Legal Rules
- ✓Leases survive the sale. Existing leases transfer automatically to the new owner.
- ✓You cannot evict to sell. A desire to sell is not grounds for eviction in Florida.
- ✓Security deposits must be transferred. Within 15 days of sale, deposits must be transferred to the new owner or returned to the tenant (F.S. §83.49).
- ✓Reasonable notice for entry. You must give at least 12 hours' notice before entering for showings (F.S. §83.53).
Fixed-Term vs. Month-to-Month Leases
Your options depend heavily on what type of lease your tenants have:
| Factor | Fixed-Term Lease | Month-to-Month |
|---|---|---|
| Can you terminate? | No (must wait till expiration) | Yes: 15-day written notice |
| Lease transfers to buyer? | Yes, with all terms intact | Yes, buyer can then terminate |
| Impact on sale price? | Depends on rent vs. market | Minimal (can vacate quickly) |
| Buyer pool | Other investors or cash buyers | Investors, cash buyers, or owner-occupants |
| Best strategy | Sell to investor/cash buyer who wants income | Terminate lease, then list to broader market |
Pro tip: If your tenants are on month-to-month, you don't have to terminate before selling. Many landlords offer tenants a "cash for keys" agreement—typically $1,000-$3,000—to vacate voluntarily. This is often faster and cheaper than waiting out the notice period, especially with uncooperative tenants.
Handling Security Deposits at Sale
Florida Statute §83.49 is specific about security deposits when a rental property is sold. You have 15 days to either:
- Transfer deposits to the new owner (most common). The title company typically handles this at closing.
- Return deposits to tenants with a full accounting.
You must also send written notice to tenants identifying the new owner's name, address, and confirming the deposit transfer. Failure to comply can result in the tenant being awarded the deposit amount plus damages.
Showing an Occupied Rental Property
This is where selling with tenants gets complicated. Under Florida law:
- You must give at least 12 hours' written notice before entering (§83.53)
- Entry must be at "reasonable times" (courts interpret this as 8 AM - 8 PM)
- Tenants cannot unreasonably refuse entry, but they can make showings difficult
- If the tenant's lease restricts showings, you must honor those terms
In practice, showing an occupied property is often messy. Tenants may not keep the unit clean, may be uncooperative with scheduling, or may actively discourage buyers. This is one of the biggest reasons landlords choose to sell to cash buyers who don't need showings.
Dealing with Difficult Tenant Situations
Non-Paying Tenants
If tenants are behind on rent, you can file for eviction (3-day notice, then court filing). But evictions in Florida take 30-60 days minimum and cost $1,500-$3,000 in legal fees. Cash buyers purchase with non-paying tenants and handle the eviction themselves.
Property Damage
Tenants who damage properties significantly reduce value. Documenting damage during the sale process is essential. Cash buyers like FL Home Buyers buy homes needing major repairs and factor in restoration costs.
Below-Market Rent
If your tenants are paying well below market rent on a fixed-term lease, the property is worth less to investors until the lease expires. Cash buyers evaluate based on after-lease potential, often offering more than other investors.
Uncooperative Tenants
Tenants who refuse showings or discourage buyers can kill a traditional sale. Cash buyers don't need interior access before making an offer—they base it on public records, comps, and a basic exterior evaluation.
Your Selling Options
| Factor | Wait for Vacancy | List Occupied | Sell to Cash Buyer |
|---|---|---|---|
| Timeline | Lease expiration + 90-180 days | 90-180 days | 7-30 days |
| Buyer pool | Full market | Investors only | Direct |
| Commissions | 5-6% | 5-6% | $0 |
| Showings needed | Yes (10-30+) | Yes (with tenant cooperation) | None required |
| Tenant hassle | High (waiting, possible holdover) | High (scheduling, cooperation) | Zero |
| Repair costs | You fix after tenant leaves | Reduce sale price | $0 (as-is) |
Tax Implications of Selling a Rental Property
Selling a rental property has different tax treatment than selling a primary residence:
- No §121 exclusion. The $250K/$500K capital gains exclusion does NOT apply to investment properties.
- Capital gains tax applies. You'll owe federal capital gains tax (15-20% depending on income) on any profit.
- Depreciation recapture. If you've been depreciating the property (and you should have been), you'll owe a 25% tax on the depreciation amount when you sell.
- 1031 Exchange option. You can defer all capital gains by reinvesting the proceeds into another investment property through a 1031 Exchange. The exchange must be identified within 45 days and closed within 180 days.
- No Florida state tax. Florida has no state income tax, so there's no state capital gains. Read more about all costs of selling in Florida.
FL Home Buyers can accommodate 1031 Exchange timelines. If you're doing a reverse exchange or are on a tight deadline, our cash closing process can close in as little as 7 days to meet your IRS filing requirements.
Frequently Asked Questions
Can I sell with tenants in place?
Yes. The lease transfers to the new owner. Cash buyers regularly purchase occupied properties.
Do I have to tell my tenants?
No legal requirement to disclose the listing, but you must give 12-hour notice for showings. Informing tenants early creates better cooperation.
What happens to the lease?
It transfers automatically. The new owner inherits all terms and obligations, including security deposits.
Can I evict to sell?
No. Florida doesn't allow eviction solely to sell. Month-to-month tenants get 15-day notice. Fixed-term leases must be honored.
Do cash buyers handle difficult tenants?
Yes. We purchase with non-paying, uncooperative, or even squatter situations. The property value is adjusted accordingly.
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Max Cohen
Licensed General Contractor • Buying Florida homes since 2014