Selling · Tenants

Your tenants come with the sale

A buyer in Massachusetts takes the property subject to whatever tenancies exist on it. That is not a technicality to sort out at closing. It changes who can buy the place, what they will pay, and which obligations land on you if the paperwork behind those tenancies was never done properly.

A lease survives the sale

Where a fixed-term lease is running, it continues until it expires. The buyer steps into your position as landlord and inherits the rent, the term and every tenant right written into the agreement. Nobody is required to leave because the property changed hands.

A tenancy at will is different. It can be ended with written notice of 30 days or one full rental period, whichever is longer, and either you or the new owner can give that notice. Longer than most sellers assume, and it runs on the rental period rather than on your closing date.

The part that costs you money

An occupied unit removes most of your buyer pool. Someone buying with an FHA loan has to occupy one of the units, usually within 60 days, and they cannot do that while a lease runs. So a tenanted property sells to investors, and investors price for yield rather than for a home they want to live in.

That gap is often larger than a year of rent. On the South Shore the same building will fetch a different number depending on whether the buyer can move in, and the owner-occupier is usually the one paying more. Whether it is worth ending a tenancy before listing is an arithmetic question, and it has a real answer for your building rather than a rule of thumb.

What you must give the tenant

Obligation	What it means
Notice of the sale	Written, naming the new owner, giving their address and the date they take over
Showings	Reasonable notice before each one. A tenant does not have to leave during a showing, but must allow access once properly noticed
The deposit	Transfers with the property, and the interest obligation transfers with it. The new owner must keep holding it in a qualifying account

Before you list

• Written leases, or a clear statement of who is at will and on what rental period
• Where each deposit is held, with the receipt and statement of condition
• Interest paid or credited, and the dates
• Rent roll against what the units would fetch today
• Deleading letters, and the Title 5 inspection if the property is on septic

Rents that sit well under market are worth naming to yourself early. An investor buyer prices on what the units earn, not on what they could earn, so under-market rents lower your sale price. Raising them takes notice periods measured in months, which is why this belongs in the conversation before listing rather than after an offer.

Questions people ask

Can I sell my Massachusetts property with tenants in it?

Yes. The buyer takes the property subject to the existing tenancies. A fixed-term lease continues to its end and the buyer becomes the landlord under it, inheriting the rent, the term and the tenant's rights.

Does a lease end when the property is sold in Massachusetts?

No. A valid fixed-term lease survives the sale. A tenancy at will can be terminated on written notice of 30 days or one full rental period, whichever is longer.

Do I have to give tenants notice before showings?

Yes. Reasonable notice is required before showing the unit to prospective buyers. The tenant is not required to vacate for a showing but must allow access once properly noticed.

What happens to the security deposits when I sell?

They transfer with the property, and the obligation to hold them in a qualifying Massachusetts account and pay interest transfers with them. Because violations of M.G.L. c.186 s.15B carry mandatory treble damages plus attorney fees, a buyer will examine this closely.

Is it better to sell empty or occupied?

It depends on the numbers, but an occupied unit removes buyers using FHA financing, who must occupy a unit and cannot while a lease runs. That usually narrows the pool to investors, who price on yield. The gap is often larger than the rent you would forgo by delivering it vacant.