Selling a house with tenants in New York is common, especially two- and three-family homes in Queens, Brooklyn and the Bronx. But the tenant doesn't disappear when you sign a contract. Their lease, their notice rights and their security deposit all come with the house, and the buyer becomes their new landlord.
That shapes everything: who will buy, what price makes sense, and how long the sale takes. This guide walks through the rules and the choices, in the order you'll face them.
Landlord-tenant law in New York is detailed and changes often. Before you send any notice to a tenant or sign a sale contract, have a New York real estate attorney review your lease and your plan.
What Happens to the Lease When You Sell
In New York, a lease survives a sale. If your tenant has a lease running through next June, the buyer is bound by it through next June, at the same rent, on the same terms. The buyer can't raise the rent mid-lease or end it early just because they bought the house.
Month-to-month tenants also stay unless their tenancy is properly ended (see section 3). And one detail surprises buyers: when a court counts how long a tenant has lived there, it counts the time under the old owner too. A tenant who has been there three years is a three-year tenant to the new owner.
If the house is owner-occupied and you rent out the other unit, that tenant's rights don't change because you're leaving. Plan for them the same way.
Sell Occupied or Deliver Vacant?
This is the biggest decision, and it sets your buyer pool.
| Sell with tenants in place | Deliver the house vacant | |
|---|---|---|
| Typical buyers | Investors and cash buyers who want rental income | Owner-occupants with mortgages, plus investors |
| Price | Often lower, especially if the rent is below market or the tenant is behind | Usually higher; more buyers can compete |
| Timing | Can close on a normal schedule | Add the notice period, and possibly months in court if a tenant stays |
| Main risk | Buyer discounts for an unknown or difficult tenant | The contract promises a vacant house and the tenant hasn't left by closing |
Don't promise "vacant at closing" until the unit is actually empty, or your attorney has built in protection. If the contract says you'll deliver it vacant and the tenant is still there, you may be in breach, and the buyer can delay, renegotiate or walk away. Many sellers get the tenant out first, then sign the contract.
For a house with a below-market rent, a tenant who's behind, or a unit that may not be legal, selling as-is to a cash buyer who takes over the tenancy is often the simplest path. Our guide to selling for cash covers how to compare those offers.
How Much Notice You Must Give
If there's no lease, or the lease is ending and you don't plan to renew, New York's Real Property Law §226-c requires written notice based on how long the tenant has lived there or the length of the lease, whichever is longer:
| Tenant has lived there | Minimum written notice |
|---|---|
| Less than 1 year | 30 days |
| 1 year to less than 2 years (or a 1-year lease) | 60 days |
| 2 years or more (or a lease of 2+ years) | 90 days |
If the notice is late, the tenancy simply continues until the full notice period has passed. A short or defective notice is one of the most common reasons landlord cases get thrown out of Housing Court, which sends you back to the start.
Notice only ends the tenancy on paper. It doesn't make the tenant leave. If they stay, the next step is court (section 8). Have your attorney prepare and serve the notice; the form and method of delivery matter.
Good Cause Eviction: Does It Apply to You?
Since April 2024, New York City has been covered by the Good Cause Eviction Law. Where it applies, a landlord can't end a tenancy or refuse to renew without a reason the law allows, such as unpaid rent or a lease violation.
Most small homeowners are exempt. In NYC, the law doesn't cover:
- Small landlords: people who own 10 or fewer units in New York State in total, counting units owned through LLCs
- Owner-occupied buildings with 10 or fewer units
- Units already covered by rent stabilization (which has its own, stricter rules)
So the typical Queens or Brooklyn owner of a two-family house is usually exempt. But even exempt landlords must give tenants a written notice saying whether the law applies to them, with leases, renewals and eviction papers.
Nassau County: Good Cause applies outside NYC only where a city, town or village opts in. Check whether yours has before relying on it either way.
Whether you qualify for an exemption depends on everything you own, directly and through companies. Confirm it with your attorney.
Rent-Stabilized Tenants
In NYC, rent stabilization generally covers buildings with six or more units built before 1974, so most one-, two- and three-family houses aren't stabilized. If your building is, the rules are much stricter: stabilized tenants generally have a right to renewal leases, and a sale doesn't change that.
A stabilized building with long-term tenants sells to a narrow group of buyers at a price based on the regulated rents. Get advice from an attorney who handles rent-regulated buildings before you list.
Showings, Access and Keeping Tenants Cooperative
New York has no single statewide rule for how much notice a landlord must give before entering for showings. Your lease usually controls, and reasonable advance notice at reasonable times is the norm. Tenants generally can't refuse reasonable access the lease allows, but a tenant who feels pushed can make a sale much harder.
What usually works:
- Tell the tenant early, in writing, that you're selling and that their lease stays in force.
- Batch showings into a few set windows instead of constant visits.
- Offer something for the inconvenience, such as a rent credit for the showing period.
- Be careful what you say. Retaliation against tenants who complain is illegal, and so is pressuring them to leave.
Many sellers skip showings entirely by selling to a single investor who walks through once.
Cash for Keys
"Cash for keys" means paying a tenant to move out by an agreed date. It's legal in New York and often faster and cheaper than court, which can take months.
- Put it in writing: the move-out date, the amount, the condition the unit must be left in, and that payment happens when the keys are handed over and the unit is empty.
- Handle the security deposit separately, under the normal rules.
- Keep it voluntary. The tenant can say no. In NYC, repeated pressure after a tenant declines a buyout can count as harassment.
Have your attorney draft the agreement. A well-written one can be enforced; a handshake usually can't.
