Working with your existing tenants and rental leases…

If you own a duplex, triplex, or fourplex in Sacramento and you’re starting to think about selling, property owners often will think about how to engage tenants, and I often get questions like: Can I sell an investment property in Sacramento with tenants still living there? Do I need to give tenants notice before selling a rental property in California? What are my rights as a landlord when selling a tenant-occupied property in Sacramento?

These are good questions, and more importantly, they’re the right questions to be asking early. The short answer is yes, you can absolutely sell a tenant-occupied property in California. In fact, many small multifamily properties are sold with tenants in place. For investor buyers, that can actually be a plus. It means the property is already producing income from day one. But while it’s completely doable, it does change how the process feels. You’re no longer just preparing a property for the market, and instead you’re coordinating around people’s lives. People who are not excited about what they perceive to be an invasion of privacy and a huge inconvenience. And it can be scary and unsettling for tenants.

In my experience, the smoother transactions happen where tenants aren’t surprised and are treated with the highest level of respect. A simple conversation at the beginning letting them know what’s coming and what to expect can make a huge difference in how cooperative and flexible they are throughout the process. This will require some coordination and teamwork between us. You (or your property manager) will want to call and let the tenants know what is happening, and then you will want to connect them with me.

You will want to deliver to the tenants a document called a “NOTICE OF SALE AND ENTRY” which allows for 24-hour oral notice for showings (pursuant to California Civil Code § 1954).

One thing I always emphasize to tenants is that I acknowledge that I know they are not excited about participating and that I want to respect their time and privacy. Showings need to be scheduled thoughtfully, communication matters more, and a little extra care goes a long way. An approach that has worked well for me is to coordinate a couple windows of time with the tenants where we can direct all showings to happen — so for example, “next wednesday between 4-5pm and Saturday from 10-11am we will get as many interested parties through as possible” — this respects their time and privacy.

If there’s a lease in place, that lease typically transfers to the new owner. Tenants can’t be forced to leave just because you’re selling. This is where strategy comes into play. Sometimes it makes sense to sell with tenants in place, especially if the likely buyer is an investor. Other times, it may be worth timing the sale around a vacancy to open the door to owner-occupant buyers, who often pay a premium.

There isn’t a one-size-fits-all answer—it really depends on your property, your tenants, and your goals. At the end of the day, working with tenants during a sale is less about what you can do, and more about how you do it. When tenants feel informed and respected, they’re far more likely to cooperate, keep the property in good condition, and help the process move forward smoothly. And that can have a real impact on your outcome. If you’re feeling unsure about how to navigate all of this, you’re not alone. It’s one of the most common concerns for small multifamily owners. The good news is that with the right plan and a thoughtful approach, it’s absolutely manageable and we can walk through it together, step by step.





Erin Stumpf, Coldwell Banker Realty, California DRE# 01706589, erin@erinstumpf.com or call/text 916-342-1372