Selling a home
Selling a House With Tenants in the Sacramento Region
California tenant rules when you sell a rental: just cause, entry notice for showings, selling occupied or vacant, and the security deposit.
Can you sell a house in California while tenants live there?
Yes. A sale doesn't end a lease. The buyer generally takes the property subject to the tenant's rights, and the tenant usually stays under the same terms. That shapes everything else: who your buyer is, how you show the home and what you can promise about possession.
Maggie B. Hopkins has 11 years of experience as a landlord herself, and she is a real estate broker and a mortgage broker. That combination helps when you're weighing an occupied sale against a vacant one.
This page is general information, not legal advice. Tenant law is detailed and changes often. Before you give any notice, talk with a California landlord-tenant attorney.
What does California's Tenant Protection Act mean for selling a rental?
The Tenant Protection Act of 2019, often called AB 1482, limits rent increases and requires a just cause to end many tenancies. The California Attorney General's landlord-tenant page (checked October 22, 2026) explains the basics:
- Just cause applies once a tenant has lived in the unit for 12 months. The Berkeley Rent Board's summary adds that it also applies when at least one tenant has been there 24 months.
- At-fault causes include not paying rent, a material lease breach, nuisance and unlawful use, among others.
- No-fault causes include an owner or qualifying relative moving in, withdrawing the unit from the rental market, a substantial remodel and a government order.
Selling the home is not on either list. So a sale by itself generally isn't a reason to end a covered tenancy. If the buyer plans to live there, the owner move-in rules matter. The Attorney General's page says the owner or relative must move in within 90 days after the tenant leaves and live there for at least 12 months in a row.
For no-fault terminations, the law requires relocation help. The City of Lakewood's summary (checked October 22, 2026) describes it as one month's rent, or a waiver of the final month's rent. The Berkeley Rent Board notes the law is set to expire January 1, 2030.
Which rentals are exempt from the Tenant Protection Act?
The Attorney General's page lists several exemptions. Two come up most often for individual owners:
- Single-family homes and condos not owned by a corporation or a real estate investment trust. The Berkeley Rent Board's summary says this exemption only works if the owner gave the tenant the required written notice. For tenancies that began or renewed on or after July 1, 2020, that notice must be in the lease. Without it, the home is not exempt.
- Newer housing with a certificate of occupancy issued within the past 15 years.
An owner-occupied duplex can also be exempt. Check your lease for the exemption notice before assuming your home is exempt. An attorney can confirm whether it applies.
Do local rent rules in Sacramento apply?
They can. The City of Sacramento runs its own Tenant Protection Program for covered rentals inside city limits. The city's news site, Sacramento City Express (July 1, 2026), says the cap for covered units is 8.6% for the year starting July 1, 2026. It also says tenants in covered units who have lived there more than 12 months and one day are protected from eviction unless a just cause exists under City Code Chapter 5.156.090, and those protections can't be waived.
The city updates the cap each July 1. Whether your rental is covered depends on its type and location, so check with the city's program before you plan around it. Homes outside the City of Sacramento, such as in Elk Grove, Roseville or unincorporated county areas, follow state law unless their city has its own rules.
How much notice do you have to give a tenant before a showing?
California Civil Code section 1954 sets the rules for entry. A summary published by the City of Oakland's Rent Adjustment Program explains them:
- Showing the home to prospective or actual buyers is an allowed reason to enter.
- The notice is in writing and states the date, approximate time and purpose.
- Twenty-four hours is presumed reasonable notice. If mailed, six days before entry is presumed reasonable.
- Entry is during normal business hours unless the tenant agrees otherwise at the time.
- Once the tenant has been told in writing that the home is for sale, later showing notices can be given orally within 120 days of that written notice.
The law also says a landlord can't use entry to harass a tenant. Beyond the rules, cooperation makes showings go better. Talk with your tenant early, offer set showing windows and think about a rent credit for the disruption.
Should you sell occupied to an investor or sell vacant?
Each path has trade-offs:
- Sell occupied to an investor. The buyer keeps the tenant and the rent. You avoid ending the tenancy. But fewer buyers want an occupied home, investors focus on the rent and the numbers, and showings depend on your tenant.
- Sell vacant. You can sell to owner-occupants, which is often a larger pool of buyers. The home can be repaired, cleaned and staged. But getting it vacant has to follow the law, may take time and may cost relocation money or a negotiated payment. You also lose rent while it sits empty.
We put both paths on paper: the likely price for each, the costs, the lost rent and the timeline. Our guide on how to evaluate a rental shows how investors look at the numbers. If you're thinking about reinvesting, see selling a rental: 1031 exchange or cash out and our 1031 exchange page.
What is cash for keys, and how does it work?
Cash for keys is a voluntary agreement. The tenant agrees to move out by a set date and leave the home in agreed condition. In return, the owner pays an agreed amount. It's a negotiation, not a legal process, and the tenant can say no.
If you go this route, put everything in writing: the amount, the move-out date, the condition of the home, how the security deposit will be handled and what happens if the date slips. Have an attorney draft or review the agreement. A payment like this doesn't replace any legal requirement that applies to your tenancy.
What happens to the tenant's security deposit when you sell?
The California Attorney General's security deposit guide (file dated February 7, 2024) says that when a landlord sells, the landlord must either return the deposit or give it to the new owner to hold. The tenant should be told what happened to it in writing.
If the tenant moves out before the sale, the same guide says the landlord has 21 days after move-out to return the deposit with an itemized statement of any deductions. Keep move-in photos, the lease and receipts handy. Escrow can handle a deposit transfer to the buyer as part of closing.
How do you get started selling a home with tenants?
Before you tell the tenant anything, gather the lease, any rent changes, the deposit amount and any notices you've given. Then talk with us or call Maggie at (916) 549-3131. We'll lay out the occupied and vacant paths in dollars, and we'll suggest you confirm the legal steps with a landlord-tenant attorney.
Our free seller guide covers the rest of the sale.
Frequently Asked Questions
Can I evict a tenant because I'm selling the house?
Under the Tenant Protection Act, selling isn't listed as a just cause on its own. If your rental is covered, you'll need a just cause that applies. Talk with a landlord-tenant attorney before giving any notice.
Is my single-family rental exempt from AB 1482?
It may be if it isn't owned by a corporation or REIT and you gave the tenant the required written exemption notice. For tenancies from July 1, 2020 on, that notice must be in the lease.
How much notice do I give a tenant for a showing?
California Civil Code section 1954 presumes 24 hours of written notice is reasonable, or six days if mailed. Showings are during normal business hours unless the tenant agrees otherwise.
Does the buyer have to keep my tenant?
Generally the buyer takes the property subject to the existing tenancy. Any change has to follow the lease and the law that applies to that rental.
What is cash for keys?
It's a voluntary written agreement where a tenant agrees to move out by a set date in exchange for an agreed payment. The tenant can decline. Have an attorney draft or review it.
What happens to the security deposit when I sell?
The Attorney General says the landlord must either return the deposit to the tenant or transfer it to the new owner. The tenant should be told in writing.
Does the City of Sacramento have its own tenant rules?
Yes. The city's Tenant Protection Program covers many rentals inside city limits, with its own rent cap and just cause rules. Check with the city whether your unit is covered.
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