Many condos on the beach and Sand Key have long-term tenants. You can sell a condo with a tenant in it, but you need to plan around the lease, the tenant’s rights and the building’s rules. Here is how it works in Florida.
Key takeaways
- A sale doesn’t end a lease. The buyer generally takes the property subject to the existing lease.
- Florida law lets a landlord enter to show the unit to buyers, with reasonable notice of at least 24 hours.
- When the property transfers, the security deposit must be transferred to the new owner.
- Your choice is to sell to an investor with the tenant in place, or wait for the lease to end and sell vacant.
Two ways to sell
| Tenant in place | Sell vacant | |
|---|---|---|
| Best buyer | Investors wanting income from day one | Owner-occupants and second-home buyers |
| Showings | Scheduled around the tenant | Easy, any time |
| Presentation | Tenant’s furniture and habits | Can be staged |
| Timing | Sell now | Wait for the lease to end |
Showings and notice
Section 83.53 of the Florida Statutes allows a landlord to enter the unit to show it to prospective buyers. For that kind of entry, the landlord must give reasonable notice, which the statute defines as at least 24 hours, and enter between 7:30 a.m. and 8:00 p.m. A good relationship with your tenant makes this much easier.
- Tell the tenant you plan to sell before the sign or listing goes up.
- Agree on a showing schedule, such as set windows each week.
- Consider a thank-you, like a rent credit, for keeping the unit tidy.
- Ask before taking listing photos of the tenant’s belongings.
The lease and deposit
- Give the buyer the lease and rent history during the inspection period.
- Transfer the security deposit at closing. Florida law requires it to go to the new owner, who then becomes responsible for it.
- Check the association’s leasing rules, since a new owner may need approval to keep renting.
Watch out: Don’t pressure a tenant to leave early. If you want the unit vacant, negotiate in writing, such as a move-out agreement, and follow the lease and Florida law.
What this means for you
If rents in the building are strong, selling to an investor with the tenant in place can make sense. If the unit would shine staged and empty, timing the sale to the lease end may bring more buyers. Our staging guide helps if you sell vacant, our property management page explains what a manager handles, and our seller’s guide covers the process.
Please note: Laws, tax rules and insurance terms change, so check the details for your situation with a licensed professional, such as a Florida real estate attorney, insurance agent or tax adviser, before you act.
Not sure which way to go? Contact us.
Sources
- Florida Statutes, section 83.53, landlord’s access to dwelling unit.
- Florida Statutes, section 83.49, deposits and transfer on sale.