Tenants · Arizona
Sell a rental with tenants
In Arizona you can sell a rental with the tenant still living there. The lease goes with the house. Here is what the law says about deposits, showings, and tenants who aren't paying, and when selling occupied makes sense.
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Yes. In Arizona a lease generally stays in force when the house is sold, and the buyer takes over as landlord. The security deposit goes to the new owner at closing, and you give the tenant written notice of the sale. You must give the tenant at least two days' notice before entering for showings. A tenant who isn't paying or won't cooperate usually means an investor buyer rather than a retail sale.
The lease goes with the house
A sale does not end a lease. The buyer steps into your shoes as landlord for the rest of the term, and a month-to-month tenancy continues until someone ends it with proper notice. Once you sell in good faith and give the tenant written notice of the sale, you are relieved of liability for later events, but you stay responsible for the security deposit until it is properly handed off (ARS 33-1325). In practice the deposit is credited to the buyer on the closing statement.
Showings and access
A tenant may not unreasonably refuse entry to show the house to buyers, but you have to give at least two days' notice and enter only at reasonable times (ARS 33-1343). Repeated showings wear on tenants, and a cooperative tenant is worth a rent credit. An investor buyer usually needs one walkthrough.
If the tenant isn't paying
- Five-day notice. For unpaid rent, a landlord can serve a written notice and file a special detainer if rent is not paid within five days (ARS 33-1368).
- Fast hearing. The court sets trial three to six days after the summons issues (ARS 33-1377). With a judgment, the landlord can get a writ of restitution.
- Cash for keys. A written agreement to pay the tenant to move out by a set date and leave the house broom-clean. It is often faster and cheaper than an eviction, and nothing goes on the tenant's record.
- Sell occupied. Investor buyers will often buy mid-eviction or with a problem tenant in place, priced accordingly.
Rental registration and out-of-state owners
Arizona requires owners of residential rental property to register it with the county assessor, and owners who live out of state must name an in-state statutory agent (ARS 33-1902). If your registration is missing, fix it. Buyers and their title companies notice.
Is it time to stop being a landlord?
Run the honest numbers: rent minus mortgage, taxes, insurance, HOA, repairs, vacancy, and management. Then compare that with what the equity could earn elsewhere. Taxes matter: depreciation is generally recaptured on sale, and a 1031 exchange can defer the gain if you buy another investment property. Talk with a CPA before you sign.
When a cash sale is the wrong choice
If the tenant pays on time, the house is in good condition, and the lease ends soon, you may do better letting the lease run out and listing it vacant. Or you can sell to an investor who wants the tenant. A cash sale fits when the tenant isn't paying, the house needs work, or you want out on a set date.
How a sale to us works with tenants
Tell us the rent, the lease end date, the deposit, and whether the tenant is paying. We schedule one walkthrough with the required notice and make a written offer that accounts for the tenant. We can buy with the tenant staying, or close after a cash-for-keys move-out if you have arranged one.
Sources
- ARS 33-1325, landlord's liability after sale
- ARS 33-1343, access
- ARS 33-1368, noncompliance by tenant; failure to pay rent
- ARS 33-1377, special detainer actions
- ARS 33-1902, rental property registration
- Maricopa County Assessor, rental registration
- IRS Publication 544, sales and other dispositions of assets
General information for Arizona homeowners, not legal, tax, or financial advice. Huge Cash Offer is a home buyer, not a law firm, lender, or housing counselor. Laws and fees change; check the linked sources.
Questions
Straight answers.
Do tenants have to leave if the house is sold in Arizona?
No. The lease stays in effect, and the new owner becomes the landlord. A month-to-month tenancy can be ended with proper notice.
Can I sell my rental with a tenant who isn't paying?
Yes, usually to an investor. You can also finish the eviction first or offer cash for keys.
How long does an eviction take in Arizona?
For nonpayment, a five-day notice, then a hearing three to six days after the summons. Most uncontested cases finish in a few weeks, depending on the court and the writ.
What happens to the security deposit when I sell?
It goes to the buyer, usually as a credit on the closing statement, and you notify the tenant in writing.
How much notice do I give a tenant for showings?
At least two days, except in an emergency, and only at reasonable times.
What is cash for keys?
A written agreement where the landlord or buyer pays the tenant to leave by a set date in good condition.
How it works
- Tell us about the house. About a minute, no obligation.
- Get a written offer. We walk the house once; offer usually within 24 hours.
- Close when it works for you. At a licensed title company, in as little as about 14 days.
Who you are dealing with
- Buying Valley houses since 2012
- Local office: 3602 E Greenway Rd, Suite 105, Phoenix, AZ 85032
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