Sell a Tenant-Occupied House in Van Nuys

With renters making up roughly three-quarters of Van Nuys households historically, a large share of the calls we get from the neighborhood are from landlords, not owner-occupants. Most start from the wrong assumption that the tenant has to be gone first. In California the tenancy survives the sale and transfers to the buyer, so the real question is not how to empty the property but how to find a buyer who will take it occupied. Cash Home Buyers CA does exactly that, as-is, throughout Van Nuys.

Selling Does Not End the Lease

Civil Code 821 gives a new owner the same rights and remedies for rent and lease breaches that the seller had, and following a transfer of leased property the lease stays in force on the same terms. A fixed-term lease runs to its end date in the buyer’s hands, and a month-to-month tenancy continues unchanged. The practical consequence for a Van Nuys seller is that a buyer relying on conventional owner-occupant financing usually cannot close, because they need possession they are not legally entitled to. That is exactly why occupied listings in Van Nuys tend to sit, and why a cash buyer who will take the building as-is changes the math.

Showings: What Notice You Actually Have to Give

Civil Code 1954 controls entry, with a specific carve-out for sale showings most owners do not know about. Written notice must state the date, approximate time and purpose of entry, with 24 hours presumed reasonable. But for showings to prospective purchasers specifically, Civil Code 1954(d)(2) lets you give notice orally, in person or by phone, once you have first notified the tenant in writing, within the previous 120 days, that the property is for sale and that you or your agent may contact them orally about showings. Get that 120-day written notice out early and the rest of the showing process becomes a phone call.

The Security Deposit Has to Be Handled at Close

Civil Code 1950.5(i) gives a selling landlord two options: transfer the remaining deposit, after lawful deductions, to the buyer and notify the tenant of the transfer and the successor’s name and contact information, or return the deposit to the tenant directly with the required accounting. Under Civil Code 1950.5(k)(1) the buyer is jointly and severally liable with the seller if this is not handled correctly, which is why a careful buyer insists on it in escrow. We handle this as part of every occupied closing.

Which Just-Cause Rules Apply to a Van Nuys Rental

• City of LA Rent Stabilization Ordinance. Covers rental units in buildings with a certificate of occupancy on or before October 1, 1978, which describes a large share of the apartment stock along Van Nuys’ boulevard corridors. RSO units carry 14 enumerated just-cause grounds for termination under the municipal code.
• State law, Civil Code 1946.2. Just cause attaches after 12 months of continuous occupancy, or 24 months where adult tenants were added later. A no-fault termination requires relocation assistance equal to one month’s rent, paid within 15 calendar days of serving notice, or a written waiver of the final month’s rent.

Terminating a Month-to-Month Tenancy

Where no just-cause ordinance applies, Civil Code 1946.1 requires 60 days’ notice, or 30 days if the tenant has lived there less than a year. There is also a narrow 30-day exception on sale, but it requires all six conditions in Civil Code 1946.1(d) to be met, including that the buyer is a natural person who in good faith intends to occupy the unit for at least a year, notice is served within 120 days of escrow opening, and the seller has never given this particular tenant such a notice before. Most sales fail at least one of those conditions, usually the natural-person requirement, since an LLC or an investor buyer cannot use it.

What We Need to Make an Offer

• A copy of the lease or rental agreement, or confirmation that it is month-to-month
• Current rent, deposit held, and when rent was last increased (rent caps under AB 1482 and RSO annual limits both apply in Van Nuys)
• Move-in date, which determines whether just cause has attached
• Build date and parcel layout, which determine RSO coverage

A signed estoppel certificate from the tenant confirming those facts speeds things up considerably, and we can supply the form. If the property came to you through an estate rather than a purchase, our guide to selling an inherited Van Nuys house covers that side of it, and if you need to move quickly for a reason unrelated to the tenancy, see our sell fast in Van Nuys page. These same landlord-tenant rules apply the same way across the rest of Los Angeles.

Frequently Asked Questions

Do I have to evict my tenant before selling?
No. The tenancy transfers with the property. We buy occupied.

Can I raise the rent to market before selling?
Only within the applicable cap, whether that is the RSO limit on an older building or the statewide AB 1482 cap on a newer one.

My tenant will not let anyone in. What now?
Serve the written 120-day for-sale notice under Civil Code 1954(d)(2), then give proper notice for entry. We can often make an offer using photos and a single walkthrough at closing.

What about the deposit?
It is credited to us at close and we take over the obligation, with the required Civil Code 1950.5(i) notice going to your tenant.

This page is general information about California and Los Angeles landlord-tenant law, not legal advice. Confirm your specific situation with a California attorney.

Get a free, no-obligation cash offer from Cash Home Buyers CA today.