Selling a House With Tenants in Los Angeles

Most Los Angeles owners who want to sell a tenant-occupied house start from the wrong assumption, which is 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, across Los Angeles.

Selling Does Not End the Lease

There is no single California statute that says this in one sentence, but it is the settled rule, and the Department of Real Estate states it plainly in its Reference Book: following a transfer of a leased property, the lease remains in force and the new landlord and the tenant generally have the same rights and obligations toward each other as the old ones did. Civil Code 821 gives the new owner the same remedies for rent and for lease breaches that the seller had. A fixed-term lease runs to its end date in the buyer’s hands. A month-to-month tenancy continues on the same terms.

The practical consequence for a seller in Los Angeles is that a buyer relying on conventional owner-occupant financing usually cannot close, because they need possession they are not legally entitled to. That single fact is why tenant-occupied listings in LA sit.

Showings: What Notice You Actually Have to Give

Civil Code 1954 controls entry, and it has a specific carve-out for sale showings that most owners do not know about.

• Written notice must state the date, approximate time and purpose of entry. Twenty-four hours is presumed reasonable. Mailed notice must go out at least six days ahead.
• For showings to prospective or actual purchasers specifically, Civil Code 1954(d)(2) lets you give notice orally, in person or by phone, but only if you have 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.
• Whoever enters must leave written evidence of the entry inside the unit.

Get that 120-day written notice out at the start and the rest of the process is a phone call. Skip it and every showing needs its own written notice.

The Security Deposit Has to Be Handled at Close

Civil Code 1950.5(i) gives a selling landlord two options and only two. Transfer the remaining deposit, after lawful deductions, to the buyer and then notify the tenant by personal delivery or first-class mail of the transfer, any claims made against the deposit, the amount deposited, and the successor’s name, address and phone number. Or return the remaining deposit to the tenant with the accounting required by subdivision (h). Under Civil Code 1950.5(k)(1) the buyer is jointly and severally liable with you if this is not done, which is why a careful buyer will insist on it in escrow.

Just Cause Applies to Your Tenant, and It Follows the House

In Los Angeles you are almost always in one of three regimes, and it changes what a buyer can and cannot do after closing.

• City of LA Rent Stabilization Ordinance. Covers rental units in buildings first built on or before October 1, 1978. A single-family home that is the only residential structure on its parcel is exempt, but a duplex, a house with an ADU, or two houses on one lot generally is not. RSO units have 14 enumerated just-cause grounds under LAMC 151.09.
• 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 the notice, or a written waiver of the final month’s rent before it comes due.
• LA County Rent Stabilization and Tenant Protections Ordinance. Applies in unincorporated areas to units with a certificate of occupancy issued on or before February 1, 1995 on a property with two or more units.

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): the dwelling is separately alienable, you have contracted with a bona fide purchaser and opened escrow, the buyer is a natural person, notice is served within 120 days of escrow opening, you have not given this tenant such a notice before, and the buyer in good faith intends to live there for at least a full year. Most Los Angeles sales fail at least one of those, usually the natural-person requirement.

If It Comes to an Unlawful Detainer

Eviction is slower in Los Angeles than it used to be, which is a large part of why selling occupied is often the faster exit. Since AB 2347 took effect in January 2025, Code of Civil Procedure 1167 gives a tenant 10 court days to respond, not five calendar days, with five additional court days for certain service methods. Los Angeles Superior Court’s Sixth Amended Standing Order, effective March 3, 2026, ended the old district hub system and assigns limited-jurisdiction unlawful detainer cases to all courthouses, with a stated objective of resolving cases within 60 days of filing. A new mandatory settlement conference pilot began at Stanley Mosk in March 2026. After judgment, only the Sheriff can enforce the writ, and under Code of Civil Procedure 715.010(b)(2) the tenant gets a five-day Notice to Vacate posted with the writ before the lockout.

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
• Move-in date, which determines whether just cause has attached
• Build date and parcel layout, which determine RSO coverage
• Any open notices, buyout discussions, or habitability complaints

A signed estoppel certificate from the tenant confirming those facts speeds things up considerably, and we can supply the form.

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. Under Civil Code 1947.12 the state cap is the lower of 5% plus CPI or 10%; LA County’s DCBA put the AB 1482 cap for the Los Angeles metro area at 8.7% effective August 1, 2026. RSO and County RSTPO units have their own lower annual limits.

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 24-hour notice. In practice we can often make an offer without a showing, using photos and a single walkthrough at closing.

Will I get less because it is occupied?
Sometimes, and it depends on the rent relative to market and the tenant’s protected status. Weigh it against months of vacancy, relocation payments, and legal fees on the other path.

What about the deposit?
It is credited to us at close and we take over the obligation, with the 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. Rules differ by city within LA County, so confirm your specific situation with a California attorney or the relevant housing department.

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