Can I Sell a Tenant-Occupied Property in Los Angeles?

Yes, you can sell a tenant-occupied property in Los Angeles—even if it's rent-controlled—but there are rules you need to follow. Whether you're dealing with the Rent Stabilization Ordinance (RSO) or just cause protections under local law, this guide explains what landlords and sellers need to know before listing a rental property with tenants in place.

Is It Legal to Sell a Rent-Controlled Property?

Absolutely. There’s no law in Los Angeles that prevents you from selling a property just because it’s rent-controlled or tenant-occupied. But what matters is how you sell it—and what expectations the buyer has about the tenant.

You’ll need to navigate:

• Disclosure requirements

• Tenant rights under the RSO

• Access for showings

• What happens after escrow closes

Key Things You Must Disclose

When selling a tenant-occupied property in Los Angeles, you are legally required to disclose:

• Whether the unit is subject to rent control (RSO)

• The current rent amount

• Any tenant protections or rent increases issued

• Any pending eviction actions

• Whether the tenant has been notified of the sale or intends to stay

Failure to disclose these can lead to civil penalties or even legal action post-sale.

Tip: Include your RSO registration certificate and rent history with the disclosures packet.

Can the Buyer Remove the Tenant After Escrow?

Not automatically. Tenants are entitled to stay under their current lease and rental protections unless:

• The lease is up and proper notice is given (if month-to-month).

• The buyer intends to move in themselves (owner move-in eviction with relocation assistance).

• The buyer plans to use the Ellis Act to remove the property from the rental market.

Each of these actions comes with strict notice periods, legal filings, and mandatory relocation payments—ranging from $8,500 to $21,200 per tenant.

Should You Try to Sell Vacant?

It depends on your goals.
Selling a property with the tenant in place may attract investor buyers looking for steady income—but often at a lower sale price due to rent caps and eviction restrictions.

Selling vacant often means:

• Higher resale value

• More buyer flexibility

• Fewer complications during escrow

To vacate legally, consider:

• Offering a tenant buyout (cash for keys)

• Using Ellis Act or owner move-in procedures

• Waiting for a lease to expire and providing proper notice

Always consult a lawyer or real estate professional before pursuing these options.

Can You Show a Tenant-Occupied Unit?

Yes, but only with proper notice. Under California Civil Code §1954, you must give tenants 24 hours’ written notice before a showing.

Additional rules:

• Showings must be during normal business hours.

• You cannot harass or pressure the tenant to vacate.

• Tenants can be present, and they do not have to tidy the unit.

Pro Tip: Offer a showing schedule or even small incentives for cooperation—especially with long-term tenants.

What If the Tenant Refuses to Leave After Closing?

If the tenant is still protected by RSO or state law (AB 1482), the buyer inherits them. The only way to legally remove them is via:

• Just cause eviction

• Owner move-in

• Ellis Act

• Mutual agreement (buyout)

Buyers cannot simply change the locks or raise the rent. Violations can lead to major fines and lawsuits.

Real Example

A probate seller in Highland Park wanted to sell a duplex with a long-term tenant paying $900/month under RSO. After disclosing the tenant’s rent control status, they marketed it as an income property with upside potential. The buyer agreed to keep the tenant in place, factoring in the restricted rent into their offer. With the right pricing and strategy, the deal closed in 30 days—without needing to displace the tenant.

Selling a tenant-occupied property in LA? The Borges Real Estate Team has helped dozens of owners navigate rent control, disclosures, and buyouts. Let’s talk about the best strategy for your situation.