Sell a House With Tenants in Florida

The open market strongly favors vacant homes. Owner-occupant buyers want to move in, and their lenders often require the property to be delivered vacant, so a tenant on a lease immediately rules out much of your buyer pool. The rest expect a discount and cooperative showings that tenants may be reluctant to give.

We are the opposite kind of buyer. The in-place lease is not a problem for us — it is simply part of what we are acquiring — so you can sell without disturbing the people living there.

Under section 83.49(7) of the Florida Statutes, when a rental property is sold, the security deposits and any advance rent held for tenants must be transferred to the new owner, together with any interest earned and an accurate accounting of the amount credited to each tenant. Once the money and records are transferred and the new owner gives a written receipt, the seller is released from the duty to hold those funds. The title company shows the transfer as a credit on the settlement statement, along with prorated rent for the month of closing.

Buyers and title companies commonly ask for a tenant estoppel letter: a short statement signed by the tenant confirming the rent, the lease dates, the deposit held and any side agreements. It protects both sides from surprises after closing. Section 83.53 says a tenant may not unreasonably withhold consent for the landlord to enter to show the unit to prospective purchasers. The statute’s 24-hour notice standard is written for repairs, but giving similar notice before a showing is good practice.

Gather the lease, rent ledger, deposit records and any notices you have served before you sign a contract. If the tenancy is already headed to eviction, or the occupant is not a tenant at all, our page on bad tenants and squatters covers those situations.

The lease does not end because the owner changed. The tenant keeps the same rent, term and rules, and the new owner becomes the landlord. After closing, the tenant should receive a written notice with the new owner’s name, where to pay rent and who to call for repairs. A tenant who has already paid next month’s rent is protected by the advance-rent credit at closing.

Section 83.49(7) also creates a rebuttable presumption that the new owner received the tenant’s deposit, limited to one month’s rent. That is why a careful buyer insists on an accurate deposit accounting and a credit at closing, and why the seller should keep the buyer’s written receipt. If deposit records are incomplete, sort them out before closing rather than after.