Need the legal rules first (notice, showings, deposits)? Read how to sell a rental property with tenants in Delaware. Tenant not paying? See selling with non-paying tenants. Weighing every exit, including a 1031? See tired of being a landlord.
What rental houses do we buy?
Occupied single-family houses, twins and rowhomes, duplexes, condos, multifamily buildings and commercial properties, as-is. Good tenants, late tenants, month-to-month tenants, a lease with a year left: tell me what you have. Delaware's Landlord-Tenant Code has no provision that ends a lease when the property sells, so your tenant's lease simply carries over to us.
- Rentals with deferred maintenance you don't want to fund
- Below-market rents you haven't raised in years
- Wilmington rentals with a lapsed rental license, or Newark rentals that need a new permit on sale
- Inherited houses that came with a tenant
- Rentals you manage from out of state (see selling from out of state)
How does selling an occupied rental to us work?
- Call or send the form. Tell me the address, the rent, the lease terms and the condition. (302) 525-0787.
- One respectful walkthrough. We schedule it with proper notice to your tenant (Delaware generally requires 48 hours' notice for showings, between 8 a.m. and 9 p.m., unless the tenant agrees otherwise). If access is hard, I can start from photos, the lease and the rent roll.
- Written offer with the math. After-repair value, repair estimate, the rent and lease terms, closing and holding costs, and our margin, all on paper.
- Settlement on your date. Delaware sales close at a licensed Delaware settlement attorney; Maryland and Pennsylvania sales close at a licensed title company or settlement attorney. Rent is prorated, the deposit is credited, and the tenant gets a letter telling them where to pay rent from now on.
You don't have to tell the tenant to move, and you don't have to fix anything first. See the full step-by-step process.
How do we price a rental with tenants in place?
The same way we price any house, with a few rental-specific lines. These are the factors that move the number:
| Factor | Why it matters |
|---|---|
| Condition and repair estimate | We still budget the work the house will need when the unit eventually turns over. |
| Rent vs. market rent | A below-market lease with a long term means lower income until it ends. |
| Lease term and payment history | A paying tenant on a clear lease is worth more than a vacancy; arrears or an eviction case add time and cost. |
| Licensing and permits | A Wilmington rental license or Newark rental permit that needs work, or a re-inspection, is a cost we price in. |
| Security deposit | The deposit is credited to us at settlement, so it comes off your proceeds. |
A cash offer on an occupied rental will be below what the same house might bring fully renovated and sold vacant to an owner-occupant. The trade is no turnover, no notice period, no months of vacancy and no repair bill. If selling vacant would clearly net you more, I'll say so.
What happens to the lease, rent and security deposit?
- The lease: stays in force. We step into your shoes as landlord on the settlement date.
- Rent: prorated on the settlement statement for the month of closing.
- Security deposit: transferred or credited to us at closing. Delaware has no specific statute on moving a cash deposit to a buyer, so the settlement attorney handles it. Bring your deposit records.
- Notice to the tenant: after settlement, a letter tells the tenant the new owner's name and where to pay rent.
- Permits: in Newark, a new rental permit application is required on any change of ownership; that's on us as the buyer.
What should you send to get an offer on a rented house?
- The current lease (and any renewals or amendments)
- A rent roll or ledger showing payments and any arrears
- Security deposit amount and where it's held
- Your rental license or permit status (Wilmington, Newark, Newport, Elsmere or other towns)
- Any open code or maintenance issues you know about
When should you sell vacant instead?
If the lease ends soon, the tenant is moving anyway, and the house is in good shape, a vacant house can sell to owner-occupants for more. That usually means at least 60 days' written notice under 25 Del. C. §5106 and a turnover. The rules are in our guide to selling with tenants, and you can compare your net with the cash vs. listing calculator. If you'd rather keep monthly income without the landlord work, look at seller financing.
Get an offer on your rental
Tenants can stay. Send the address, the rent and the lease terms, and I'll send a written offer with the math.
Get My Written Offer Call (302) 525-0787Frequently asked questions
Can I sell my rental house with tenants still living in it?
Yes. In Delaware a sale doesn't end the lease; the buyer takes over as landlord. We buy occupied rentals and take over the existing lease.
Do I have to give my tenant notice before selling to you?
Not to sell. You'll need to give proper notice for a walkthrough (generally 48 hours in Delaware), and the tenant gets a letter after settlement saying where to pay rent.
What happens to the security deposit when you buy?
It's credited or transferred to us at settlement. The settlement attorney handles it, so bring your deposit records.
Will you buy if the tenant is behind on rent?
Often, yes. Arrears and any eviction case affect the price and timing. See selling with non-paying tenants.
Do you pay less for a house with tenants?
Usually less than the same house renovated and sold vacant to an owner-occupant. You skip the notice period, turnover, repairs and vacancy. We show every line of the math.
Sources
- Delaware Residential Landlord-Tenant Code (25 Del. C. Ch. 51)
- 25 Del. C. Ch. 55 (tenant obligations and landlord remedies)
General information, not legal, tax, or financial advice. Laws, fees, and schedules change. Confirm with the office named or your attorney.
