I want to sell my rental house. It is currently occupied by 4 tenants with a 1 year lease ending about 6 months from now. What are the steps in notifying the tenants about the sale and showing of the home while occupied?
First, the existing lease agreement is valid and enforceable until its expiration date and the lease binds the buyer if sold before the date of its expiration or as otherwise terminated.
Second, most lease agreements and the laws of many states require tenants to cooperate with any agents of the owner including real estate agents, appraisers, contractors, etc. However, entry to the property must be preceded by the required advance notice. The minimum period is 24 to 48 hours in most states, but this would be overridden by any longer period specified in the lease or by any lesser period if state law allows tenants to waive a longer law requirement. However, the entry time must be at reasonable hours. If a tenant refuses to cooperate, entry cannot be made and the only recourse would be to file a lawsuit.
Due to possible problems with access and the fact that the property may not show well when occupied by tenants, it is usually best to not try to sell a single-family property while leased.