Selling a Rental Property With a Tenant: Is It Legal in Missouri?

As a landlord in Missouri, you might find yourself in a situation where you need to sell your rental property while tenants are still living there. This scenario can raise many questions about legality, tenant rights, and your obligations as a property owner. Understanding the laws and regulations surrounding this process is crucial to ensure a smooth transaction and avoid potential legal issues.

Below, we’ll explore selling a rental property with tenants in Missouri. We’ll cover tenant rights, landlord obligations, legal considerations, and practical steps to navigate this complex process. Whether you’re a seasoned real estate investor or a first-time landlord, this information will help you make informed decisions when selling your rental property.

What Are Tenant Rights in Missouri?

In Missouri, tenants have specific rights protected by law, even when the rental property is being sold. These rights are designed to ensure fair treatment and maintain a stable living environment for renters.

According to Missouri Revised Statutes Chapter 441, tenants have the right to:

• A habitable living space that meets health and safety standards
• Proper notice before the landlord enters the property
• The return of their security deposit within 30 days of moving out, minus any legitimate deductions
• Protection against unlawful discrimination
  

During a rental property sale, tenants retain these rights. They also have the right to remain in the property until their lease expires, even if the property changes ownership. If the tenant has a fixed-term lease, the new owner must honor the terms of that lease.

What Are My Obligations to the Tenant When Selling My Rental Property?

As a landlord selling your rental property in Missouri, you have several obligations to your tenants:

You must give tenants reasonable notice (typically 24 hours) before showing the property to potential buyers. You cannot terminate a fixed-term lease simply because you want to sell the property. The new owner will inherit the lease and must honor its terms.

You must also continue to keep the property in a habitable condition and make necessary repairs throughout the sale process. While you have the right to show the property, you must respect your tenant’s right to privacy and quiet enjoyment of the rental unit. If the property sells, you must transfer the tenant’s security deposit to the new owner or return it to the tenant.

What Legal Issues Should I Consider When Selling a Rental Property in Missouri?

Review all existing lease agreements carefully. Fixed-term leases will transfer to the new owner, while month-to-month leases offer more flexibility. Ensure proper handling and transfer of security deposits to avoid legal complications.

Adhere to federal and state fair housing laws throughout the sale process to avoid discrimination claims. Be transparent about the property’s condition and any existing tenant agreements to potential buyers. If you need to remove a tenant before selling, follow Missouri’s strict eviction procedures to avoid legal repercussions.

What Is the Process of Selling a Rental Property with Tenants

Selling a rental property with tenants requires careful planning and execution. Here’s a general overview of the process:

• Inform the tenants: Notify your tenants about your intention to sell the property. Open communication can help maintain a positive relationship and potentially gain their cooperation.
• Review lease agreements: Examine existing leases to understand your obligations and the impact on potential buyers.
• Prepare the property: Make necessary repairs and improvements while respecting your tenants’ rights and privacy.
• Market the property: List your rental property, emphasizing its potential as an investment opportunity with existing tenants.
• Show the property: Coordinate showings with your tenants, providing proper notice and minimizing disruptions to their daily lives.
  

4 Things to Consider When Selling a Rental With a Tenant

When selling a rental property with tenants in Missouri, there are several important factors to keep in mind. These considerations can help you navigate the process more smoothly and protect both your interests and those of your tenants.

1. Lease Agreement

Review the existing lease agreement carefully. If it’s a fixed-term lease, the new owner must honor its terms. For month-to-month leases, you have more flexibility but must still provide proper notice for any changes or termination.

2. Covering Tenant Moving Expenses

Consider offering to cover moving expenses if you need tenants to vacate before selling. This gesture can incentivize cooperation and potentially speed up the sale process while maintaining a positive relationship with your tenants.

3. Security Deposits and Rent Payments

Ensure proper handling of security deposits and rent payments during the sale. You’ll need to transfer security deposits to the new owner or return them to tenants, depending on the situation.

4. Agree on a Moving Timeline with the Tenant

If tenants need to move out, work together to establish a reasonable timeline. This collaborative approach can help avoid conflicts and ensure a smoother transition for everyone involved.

Cash Home Sale: The Fastest Way to Sell Your Rental House

A cash home sale involves selling your rental property directly to a buyer who can purchase the house without financing. This method can be particularly appealing when selling a rental property with tenants, as it often allows for a quicker and more flexible sale process.

Benefits of a cash home sale for landlords include:

1. Faster closing: Cash sales typically close much quicker than traditional sales, often in as little as a week.
2. Fewer contingencies: Cash buyers usually purchase properties “as-is,” reducing the need for repairs or improvements.
3. Simplified process: With no lender involvement, there’s less paperwork and fewer potential delays.
4. Flexibility with tenants: Cash buyers are often investors who may be willing to take on existing tenants or work with you on tenant transitions.
   

For landlords looking to sell their rental property quickly and with minimal hassle, a cash home sale can be an attractive option. It allows you to bypass many of the complexities associated with traditional sales, especially when dealing with tenant-occupied properties.

Sell Your House Fast in St. Louis, Missouri

If you need to sell your house fast but don’t want the hassle of a traditional home sale, contact Klamen Real Estate Buyers. We buy houses as-is. No repairs are needed. Avoid closing costs and realtor commissions. Close in as little as seven days. Call 314-328-7065 and get a fast cash offer from our local home buyers in Missouri.