Sell a House With Tenants in New York

This page is general information about New York, not legal, tax or financial advice. Laws and local rules change, and every situation is different. Talk with a New York attorney, tax professional or HUD-approved housing counselor about your own circumstances.

Being a landlord in New York has changed

The Housing Stability and Tenant Protection Act of 2019 changed the rules for most New York landlords. A few of the changes small landlords notice most:

• Security deposits are capped at one month’s rent and must be returned within 14 days after the tenant moves out, with an itemized statement of any deductions.
• Landlords must give advance written notice before raising rent by 5% or more or deciding not to renew a lease. The required notice is 30, 60 or 90 days, depending on how long the tenant has lived there.
• Evictions must go through the courts. Changing the locks or removing a tenant’s belongings without a court order is illegal.

On top of that, New York’s Good Cause Eviction law lets cities and towns opt in. As of 2025, Hudson Valley municipalities including Beacon, Newburgh, Kingston and the City and Town of Poughkeepsie had opted in. The law limits evictions and non-renewals to specific reasons and caps “unreasonable” rent increases, with exemptions such as some small landlords. Check whether it applies to your building. Some cities also require rental registration or periodic inspections.

Can you sell a house with tenants in it?

Yes. In New York, a sale doesn’t end a lease. The buyer takes the property subject to the existing leases, and month-to-month tenants stay until their tenancy is properly ended. That’s why many investors buy rentals occupied.

When you sell, New York law requires you to turn over the tenants’ security deposits to the new owner (at closing or within five days) and notify the tenants by registered or certified mail of the new owner’s name and address. The title company and attorneys usually handle this as part of the closing.

What we’ll ask for

To make an offer on a tenant-occupied property, we usually ask for the current leases or rental terms, a rent roll showing what each tenant pays and whether they’re current, the security deposit amounts, and any notices or court cases in progress. We’ll schedule any walk-through around your tenants with proper notice.