How to Sell a Rental Property with Tenants in Las Vegas

by Ryan Rose

Selling a property with tenants is different from selling an empty home. You're balancing your sale goals with tenant rights and cooperation. Here's how to navigate it.

Your Two Main Options

Option 1: Sell Tenant-Occupied

Keep tenants in place during and after the sale. The new owner becomes their landlord.

Pros:

No vacancy during sale process
Rental income continues
Attractive to investor buyers
No need to wait for lease expiration

Cons:

Smaller buyer pool (investors only, typically)
Showing challenges with occupied property
Tenant cooperation needed
May sell for less than vacant property

Option 2: Sell Vacant

Wait for lease expiration or negotiate tenant departure, then sell empty.

Pros:

Larger buyer pool (investors and owner-occupants)
Easier showings
Can stage and present better
Typically higher sale price

Cons:

Lost rental income during vacancy
Must wait for lease end or negotiate early termination
Property may need cleaning/repairs after tenant leaves

Tenant Rights in Nevada

You cannot simply kick tenants out to sell. Nevada law protects tenants:

Lease terms survive sale. If your tenant has 6 months left on their lease, the new owner must honor it.

Month-to-month tenants: You can give 30 days written notice to terminate (or as specified in the rental agreement).

Fixed-term lease: You generally cannot terminate early without cause. You can offer incentives for voluntary departure.

Showing notice: You must give reasonable notice before showings (typically 24 hours in Nevada).

Working with Tenants

Communicate early. Tell tenants you're planning to sell before listing. Surprises create hostility.

Explain their rights. Assure them their lease will be honored by the new owner.

Negotiate cooperation. Offer incentives for keeping the property show-ready and accommodating showings.

Respect their space. Give proper notice, schedule showings at reasonable times, minimize disruption.

Incentives That Work

To encourage tenant cooperation:

Rent reduction during the listing period
Cash bonus for keeping property clean for showings
Early lease termination option without penalty
Moving cost assistance if they leave before sale
Positive reference for their next rental

A cooperative tenant makes showing easier and presents better to buyers.

Targeting Investor Buyers

If selling tenant-occupied, market to investors who value:

Existing rental income from day one
Proven rental history
No turnover costs or vacancy
Tenant already screened and paying

Provide investors with:

Current lease terms and expiration
Rent amount and payment history
Security deposit amount (transfers to new owner)
Any existing maintenance issues

Showing Challenges

Occupied properties are harder to show:

Condition varies. Tenant housekeeping affects presentation.

Scheduling difficulties. Must coordinate with tenant availability.

Less flexibility. Can't do open houses or last-minute showings easily.

Personal belongings. Clutter and personal items affect buyer perception.

Solutions:

Schedule showing windows (e.g., Tuesdays and Thursdays 2-5pm)
Give tenants advance notice of all appointments
Offer incentives for presentation standards
Be flexible with investor buyers who understand tenant situations

Security Deposit Transfer

When the property sells, the tenant's security deposit transfers to the new owner. This is typically handled at closing:

Deposit amount credited to buyer
New owner becomes responsible for returning deposit at lease end
Document the deposit amount in sale paperwork

Price Impact

Tenant-occupied properties may sell for 5-15% less than vacant properties because:

Buyer pool is limited to investors
Showing difficulties reduce interest
Buyers can't see property at its best
Below-market rents may reduce investor interest

However, if your tenant pays market rent and the property shows well, the discount may be minimal.

Timing Considerations

Best scenarios:

Lease ending soon: List with lease expiration as expected closing timeframe
Month-to-month: Give notice, list immediately, close when vacant
Long lease remaining: Target investors or wait for better timing

The Bottom Line

Selling with tenants requires balancing your sale goals with tenant rights and cooperation. Communicate early, offer incentives for cooperation, and target the right buyer pool. With proper planning, tenant-occupied sales can be successful.

Own a rental property in Las Vegas and thinking about selling? Let's discuss your options.