Selling a rental house with tenants in place in Tampa Bay

Can a landlord sell a house with tenants in Florida?

Yes. Having tenants does not stop you from selling, and in general the lease stays in force after the sale. The buyer steps into your place as the landlord.

Florida's landlord-tenant law defines the landlord as "the owner or lessor" of the home (Fla. Stat. 83.43), so when the house changes hands, the buyer becomes the tenant's landlord. A sale is not one of the reasons the law gives a landlord to end a lease early. Those reasons are unpaid rent and lease violations, after the right written notice (Fla. Stat. 83.56).

Read your lease first. Check the end date, the renewal and notice terms, and whether it says anything about a sale or gives the tenant an option to buy. If any of it is unclear, ask a Florida real estate attorney.

What happens at closing:

1. Deposits and advance rent move to the buyer. You must transfer them with any interest owed and an accounting for each tenant. Once you do and get a written receipt, you are released from holding those funds. The law presumes the new owner received the deposit, up to 1 month's rent, unless shown otherwise (Fla. Stat. 83.49(7)).
2. Rent for the closing month is settled in the contract. Your sale contract says how rent and deposits are credited at closing, so read that part closely.
3. The buyer often asks the tenant to confirm the lease. This is a short signed letter, called an estoppel letter, stating the rent, the deposit and the lease dates.
4. The tenant learns who the new landlord is. Tenants must get the name and address of the landlord, or of the person who receives notices, in writing. Changes go to the tenant's home, or by e-mail if both sides signed an e-mail addendum (Fla. Stat. 83.50, 83.505).

Do you have to tell tenants you are selling, and can you show the house?

Tenants must be told in writing who the new landlord is after the sale (Fla. Stat. 83.50), and they may not unreasonably refuse entry for showings. Telling them early and scheduling visits at reasonable times usually keeps things smooth.

• Showings. The tenant may not unreasonably withhold consent for you to enter to show the home to prospective or actual buyers (Fla. Stat. 83.53).
• Repairs. Entry for repairs needs at least 24 hours' notice, and the visit must be between 7:30 a.m. and 8:00 p.m.
• No harassment. A landlord may not abuse the right of access or use it to harass the tenant.
• No retaliation. A landlord may not raise rent, cut services, or bring or threaten an eviction mainly to get back at a tenant who complained to a code agency, complained to the landlord or used fair housing rights, among other protected acts (Fla. Stat. 83.64).

A few ways to keep it calm: tell the tenant your plans before the sign goes up, agree on a showing schedule in writing, keep the number of visits low, and consider a buyer who needs only one walk-through.

How much notice do you need to end a month-to-month tenancy in Florida?

At least 30 days' written notice before the end of a monthly rental period. It was 15 days until a 2023 law changed it, effective July 1, 2023.

The month-to-month change came from chapter 2023-314, Laws of Florida, which also made residential landlord-tenant rules a state matter, so local governments cannot set their own on the topics it covers (ch. 2023-314).

Leases with an end date. A fixed-term lease runs to its end date. It may require either side to give 30 to 60 days' notice if it will not be renewed (Fla. Stat. 83.575). Because the law's grounds for ending a lease early are unpaid rent and lease violations, ending one early to sell generally takes a lease clause that allows it or the tenant's own agreement.

Why isn't eviction a shortcut to selling an empty house?

A planned sale is not a ground to end a lease early, and even when a tenancy has properly ended, a landlord gets the home back only through a county court case, the tenant's surrender or abandonment. Self-help like changing locks is illegal and costly.

• Through court only. Except in narrow cases, a landlord recovers possession only through a court action, a surrender by the tenant, or abandonment. The case is filed in the county court where the house sits (Fla. Stat. 83.59).
• Ending a lease early. The law's grounds are unpaid rent, after a 3-day written demand that does not count weekends or court holidays, and lease violations, after a 7-day written notice (83.56). A planned sale is not one of them.
• After a tenancy ends. If a lease runs out or a month-to-month tenancy is ended with proper notice and the tenant stays, the landlord may go to court for possession (83.59). The court case is still required.
• No lockouts. A landlord may not cut off utilities, block access, or remove doors, locks or the tenant's belongings. The penalty is actual and consequential damages or 3 months' rent, whichever is greater, plus costs and attorney's fees (Fla. Stat. 83.67).

Sell with tenants, wait, offer it to the tenant or agree on a move-out: which fits?

Selling with the tenants in place is often the simplest path, and it suits investor buyers. Waiting for the lease to end and selling empty can bring more buyers and sometimes a higher price, but you keep paying the costs of owning it meanwhile.

About cash for keys. It is a voluntary deal, not a legal procedure: you offer the tenant money to move out by an agreed date, and the tenant hands back the keys. A tenant's surrender is one of the lawful ways a landlord gets a home back (83.59). Put the amount, the move-out date, the condition of the house and the deposit return in a signed agreement. Give the tenant time to think and to get advice, and never pair the offer with a threat. Return the deposit within 15 days after the tenancy ends, or send written notice of any claim within 30 days, as the law requires (Fla. Stat. 83.49).

To compare what a cash sale would leave you with what listing might, see our cash offer vs. listing comparison.

What taxes apply when you sell a rental house?

Usually tax on your gain, including a separate rate on the part that comes from depreciation. A 1031 exchange can put off the tax if you trade into other investment real estate. Talk to a CPA before you sign.

• Depreciation. The part of your gain on a rental building that comes from depreciation, called unrecaptured section 1250 gain, is taxed at a maximum 25% rate (IRS Topic 409). If you skipped depreciation in past years, ask a CPA how that affects you.
• 1031 exchange. If you exchange real estate held for business or investment for other business or investment real estate, you generally do not recognize the gain then. Cash or other property you receive is taxed, and the exchange is reported on Form 8824 (IRS like-kind exchanges).
• 1031 deadlines. In a deferred exchange you must identify the replacement within 45 days and receive it by the 180th day or your tax return due date (with extensions), whichever is earlier. If you receive the sale money yourself, it is treated as a sale; a qualified intermediary under a written agreement can hold it instead (IRS Publication 544).
• If you once lived there. The home sale exclusion (up to $250,000, or $500,000 on a joint return) requires owning and living in the home for at least 2 of the last 5 years. Publication 523 explains the limits and exceptions (IRS Topic 701).

Where are evictions and landlord questions handled in Pinellas, Hillsborough and Pasco?

Eviction cases are filed in the county court where the house sits, through that county's Clerk of Court. The landlord-tenant rules themselves come from state law, so they are the same in all three counties.

The Florida Bar hosts the Florida Supreme Court approved landlord/tenant forms, including the notice for unpaid rent, the notice of noncompliance and the notice of a claim on a security deposit. It says the forms are not a substitute for an attorney's advice.

How does Tao Home Buyers handle a rental with tenants?

We can buy with tenants still living there, so you do not have to empty the house first. If the tenant wants to stay, the lease comes with the house, and the deposit transfers at closing as Florida law requires.

We are the end buyer: Tao Builders LLC buys in its own name and closes at a licensed title company, and we do not assign or wholesale contracts. Earnest money goes to the title company the same day you sign (or the next business morning if you sign after hours). Our proof of funds is a letter from our lender.

We can close in as few as 10 days when the title is clear, and you pick the closing date. Our cash offer will usually be below what the house would sell for on the open market, and if the lease ends soon and the house is in good shape, waiting and listing it may leave you more. Matan, the owner, has bought houses around Tampa Bay for 4 years and has personally bought more than 50. He is a licensed Florida real estate sales associate with Jay Alan Real Estate, buying for his own company as a principal, not as anyone's agent.

Sources

Official sources we checked for this page. Rules change, so confirm anything important with the source or a Florida attorney.

1. Fla. Stat. 83.49, security deposits and advance rent, including transfer on sale (Florida Senate)
2. Fla. Stat. 83.53, landlord's access to the home (Florida Senate)
3. Fla. Stat. 83.56, termination of a rental agreement (Florida Senate)
4. Fla. Stat. 83.57, ending a tenancy with no end date (Florida Senate)
5. Fla. Stat. 83.59, right of action for possession (Florida Senate)
6. Fla. Stat. 83.67, prohibited practices (Florida Senate)
7. Laws of Florida ch. 2023-314 (CS/HB 1417), 30-day month-to-month notice and state preemption
8. Topic no. 409, capital gains and losses (IRS)
9. Like-kind exchanges, real estate tax tips (IRS)
10. Publication 544, sales and other dispositions of assets (IRS)
11. Topic no. 701, sale of your home (IRS)
12. Landlord/tenant forms (The Florida Bar)