Can You Sell a House with Tenants in Michigan?
Understand Your Rights, Lease Impacts, and Realistic Selling Options When Tenants Still Occupy the Property
Being a landlord in Michigan isn’t always what people imagine when they first get into it.
At first, it might feel like a smart investment — a steady income stream, some tax benefits, and the pride of owning more real estate. But when you’re dealing with tenant issues, lease complications, or legal obligations, that “investment” can quickly start to feel more like a trap.
Whether you're here because you're overwhelmed, facing constant late payments, or simply want to move on without making things worse for your tenants (or yourself), this page is for you.
In the sections below, we’ll break down exactly what your options are if you want to sell a house in Michigan that still has tenants living in it. We’ll explain what the law says, how different lease types affect your ability to sell, and what kind of buyers will actually take a property like this off your hands — without creating unnecessary conflict or stress.
This isn’t legal advice — but it is a guide to help you understand your situation, know your rights, and avoid costly mistakes.
Yes, You Can Sell with Tenants — But It Depends
In Michigan, you can sell a property with tenants living in it — but the details of the lease and the legal rights of your tenants will shape how that sale happens.
First, let’s look at the two most common types of leases:
Month-to-Month Lease: These are more flexible. Michigan law allows either the landlord or tenant to end the agreement with proper written notice — typically 30 days. If you’re selling, this makes it easier to offer the buyer a vacant property, especially if they plan to move in themselves or do renovations.
Fixed-Term Lease: If your tenants are under a lease with an end date (say, 12 months), the sale doesn’t automatically terminate the lease. The new buyer inherits the lease — and the tenants — until it expires. That means you’ll likely need to find a buyer who’s comfortable being a landlord, at least temporarily.
Regardless of lease type, Michigan law protects tenants’ right to remain in the home unless they’re legally evicted or the lease is properly ended. Trying to force a tenant out to make a sale go more smoothly could put you at risk for legal consequences — and damage your reputation if word gets out.
If you're unsure where your lease stands or what steps are required to sell legally, it’s smart to familiarize yourself with the state's housing laws and get guidance if needed:
Understanding these nuances not only helps you protect yourself legally — it can also help you attract the right kind of buyer who knows what to expect and won’t back out mid-process.
Selling Options Based on Lease Type
Your ability to sell a house with tenants in Michigan depends heavily on the lease type — and each scenario comes with its own challenges and solutions.
🔄 Selling with Month-to-Month Tenants
If your tenants are on a month-to-month lease, you have more flexibility:
You can give proper notice (typically 30 days in writing) to end the tenancy before the sale closes.
Alternatively, you can sell the property with the tenants in place, allowing the new owner to assume the role of landlord.
Some buyers — especially cash investors — prefer occupied properties with paying tenants. However, retail buyers looking for a home to live in will often require the property to be vacant before closing.
📅 Selling with Fixed-Term Leases
Fixed-term leases are legally binding agreements. If your tenant has a lease that runs for another 6 or 12 months:
The lease transfers to the buyer at closing. They must honor its terms, including rent amount and expiration date.
The tenant has a legal right to stay, and any attempt to force them out could violate Michigan’s tenant protection laws.
Buyers will evaluate your tenant situation as part of their due diligence. That includes reviewing lease agreements, payment history, and even meeting the tenant in some cases.
🤝 Respecting Quiet Enjoyment
Regardless of the lease type, all tenants have the right to quiet enjoyment — meaning they can’t be harassed, evicted without cause, or have their peace disturbed by constant showings or surprise visits.
Violating this can lead to legal action and make your sale more difficult. It’s important to work with your tenants, not against them. Some landlords even offer cash incentives (“cash for keys”) to help tenants transition smoothly — especially if timing is tight.
If you’re navigating these issues during another major life transition — like divorce — additional emotional and legal pressures can complicate things even further. You might find this related guide useful:
🔗 How to Sell a House During a Divorce in Michigan
Knowing your lease structure — and how it affects your timeline, buyer pool, and obligations — can help you avoid surprises and choose the right path forward.
Are You Trying to Understand Your Options?
Talk to Dennis Now – (734) 224-5977
Do You Have to Tell the Buyer About the Tenants?
Yes — in Michigan, you are legally obligated to disclose the presence of tenants to any potential buyer. Transparency isn’t just a best practice in real estate; it’s the law.
If you’re selling a rental property, your disclosure should include:
Whether the property is currently occupied
The type of lease agreement in place (month-to-month or fixed-term)
The start and end dates of the lease
Rent amount and payment history
Any deposits being held
Known issues with tenant behavior or nonpayment
Whether there are Section 8 or subsidized housing agreements in place
This information is critical for buyers — especially investors — to assess the risk and value of the deal. Failing to disclose could result in legal disputes down the line, especially if the new owner is caught off guard by lease terms or problem tenants they weren’t informed about.
Michigan doesn’t require landlords to use a specific disclosure form when selling rental properties, but keeping everything in writing and documented is highly recommended.
For a deeper dive into what must be shared with buyers, this resource is a helpful reference:
Being upfront about tenants shows good faith, reduces the risk of the deal falling apart during due diligence, and helps you attract the right kind of buyer from the start.
What If the Tenants Are Causing Problems?
Selling a tenant-occupied property is one thing — selling one where the tenants are causing issues is another. Whether it’s late rent, property damage, unauthorized occupants, or general non-cooperation, these problems can dramatically reduce buyer interest and affect the final sale price.
Here’s how these issues can impact the selling process:
🛑 Lender Restrictions
If your buyer is using financing (especially FHA or VA loans), the lender may require the property to be vacant or in livable condition. Problem tenants can delay or derail closings — even if the buyer is motivated.
👎 Investor Red Flags
Even cash buyers and investors can get nervous about inherited tenant problems. Many will ask:
Are rent payments current?
Has the tenant caused any damage?
Are there eviction proceedings in progress?
If the answers raise red flags, they may walk away — or make a significantly lower offer to offset the perceived risk.
🧑⚖️ Legal Constraints
Under Michigan law, you can’t just evict a tenant to make the sale easier. There must be legal grounds for removal, such as lease violations or failure to pay rent. If you're considering eviction, make sure you're following all applicable procedures — or you could end up in housing court yourself.
🤝 Communication is Key
While not always possible, open communication with your tenants can go a long way. Offering incentives like “cash for keys” in exchange for cooperation or early move-out can create a win-win — especially if you’re transparent about your intention to sell.
If you're dealing with tenants who are actively making your life difficult, you’re not alone. Many Michigan landlords are in the same position, which is why this resource exists:
🔗 Sell a House with Bad Tenants in Michigan
Understanding how problematic tenants affect your timeline, marketability, and negotiation power can help you plan your next steps — and decide whether to move forward with repairs, eviction, or an as-is sale.
"When you mentioned that you would give us an offer within 24 hours and then close quickly I didn’t really believe that we would have the house sold in only 2 weeks. I’m glad I found you.”
Michelle L. - Michigan
What Buyers Will Actually Buy Tenant-Occupied Properties?
Not all buyers are willing — or able — to take on tenant-occupied homes, especially when those tenants come with legal obligations or potential complications. Understanding who your likely buyers are will help you market the property realistically and avoid wasting time.
🏡 Retail Buyers: Rare, But Possible
Most traditional homebuyers (those purchasing with a mortgage to live in the home) are not interested in tenant-occupied properties. They typically want a move-in-ready, vacant home — and many lenders require vacancy prior to closing. Even in cases where the lease is month-to-month, the delay and uncertainty of removing tenants is a dealbreaker.
💼 Investor Buyers: Your Best Bet
Real estate investors are much more likely to buy homes with tenants in place, especially if:
The tenant is paying rent consistently
The lease terms are favorable (i.e., below-market rent or short-term)
The property cash flows well or can be improved
That said, even investors are cautious when:
The tenant is behind on rent
There’s property damage
The lease is long-term and well below market value
Eviction or court proceedings are involved
💬 Set Expectations
Before listing or contacting potential buyers, be honest about the tenant situation. Have lease agreements, payment histories, and any notices or correspondence ready. The more prepared you are, the more credible you’ll be to serious buyers.
For a practical overview of how to prepare for a sale and what to expect, this guide breaks down useful tips for landlords:
📘 Selling a House with Tenants – Weekend Landlords
👋 A Local Buyer Who Understands Tenant Situations
This is exactly the kind of situation I deal with often. I’ve purchased many tenant-occupied homes in Michigan — even those with delinquent tenants, lease complications, or property damage. If you want a buyer who won’t run the other way when tenants are involved, I’m happy to talk through your options. No pressure — just a real conversation with someone who’s been there.
When You're Done Fighting
Sometimes, it’s not about lease types, laws, or buyer profiles. Sometimes… you’re just tired.
Tired of chasing rent.
Tired of late-night phone calls about leaking toilets.
Tired of worrying if your property will still be intact at the end of the month.
Being a landlord isn’t for everyone — and even the best investors burn out. If the idea of dealing with showings, negotiations, and tenant resistance feels exhausting, that’s valid. It doesn’t make you a bad owner. It makes you human.
And here’s the truth: You don’t have to keep fighting.
There are ways to move forward — legally, ethically, and without conflict — even if your tenants are still in place. Some landlords choose to offer tenants cash to move out early. Others find an investor willing to buy the property with the tenants in place. In either case, it starts by understanding your options — not by pushing yourself past your limit.
“If you’re just… done, that’s okay. I’ve helped Michigan landlords walk away from stressful rentals — no pressure, no judgment. Just honest answers and practical solutions.”
Whether you end up selling or not, just know this: You’re not stuck — and you don’t have to figure it all out alone.
Gloria B. - Clinton Township, Michigan
“Thank you for contacting me. I didn’t know what I was going to do with this house"
FAQs About Selling With Tenants
Selling a property with tenants brings up a lot of questions — and rightly so. Michigan landlords often feel caught between protecting their rights, respecting their tenants, and trying to make a clean exit. Here are some of the most common questions that come up:
❓ Can I evict tenants just because I want to sell the property?
No. Michigan law doesn’t allow landlords to evict tenants solely to make a property more marketable. You can only pursue eviction for legal reasons like nonpayment, lease violations, or the end of a month-to-month lease (with proper notice). Learn more about those rules here:
📘 MCL 554.134 – Michigan Legislature
❓ Do I have to get the tenant’s permission to show the house?
Not exactly, but you must give reasonable notice — typically 24 hours — before entering the unit. Michigan law supports a tenant’s right to “quiet enjoyment,” so excessive or last-minute showings may cause issues. Keep communication clear and professional.
❓ What happens to the tenant’s security deposit after the sale?
The security deposit transfers to the new owner. As the seller, you’re typically required to either refund it or pass it along in writing at closing. Failing to do so can lead to disputes later.
❓ What if my tenant refuses to cooperate with showings or buyers?
You’re still required to follow legal notice procedures. If they’re disruptive or hostile, it might affect your ability to sell — but that doesn’t mean you're out of options. Some landlords choose to offer a move-out incentive, like "cash for keys," to smooth the process.
❓ Will buyers actually want a house with tenants?
It depends on the tenant situation and the buyer’s goals. Investors may welcome existing tenants — especially those who pay reliably — but retail buyers usually want the home vacant.
For deeper information on selling rental homes under pressure — especially when tenants are causing issues — visit the main guide here:
🔗 Sell a House with Bad Tenants in Michigan
Getting clear on the rules and real-world scenarios can help you feel confident about your next move.
Know the Law, Then Do What’s Right for You
Selling a house with tenants in Michigan can feel like navigating a maze — leases, laws, tenant rights, buyer concerns, and emotional stress all tangled together. But once you understand your legal rights, your obligations, and your options, the path becomes clearer.
Here’s what to keep in mind:
Michigan law supports tenant protections, but it also gives landlords the right to sell their property. Knowing how to balance those two sides is key.
Your ability to sell depends largely on your lease type, the tenant’s behavior, and buyer expectations.
You have options — including selling to an investor, negotiating a tenant move-out agreement, or waiting out a lease to maximize your sale price.
You don’t need to rush — but you also don’t have to stay stuck.
Some landlords choose to make small upgrades and wait until the property is vacant. Others want out now, even if that means selling for a bit less to avoid months of headaches. Either route is valid — as long as it aligns with your goals and peace of mind.
When you understand the rules of the game, you can make decisions that protect your investment and your sanity. Know the law, get your facts straight — and then move forward in the way that feels right for you.
See why so many people recommend us...
“Mr. Fassett – thank you for working with us to buy my Mom’s home after she passed away. When you mentioned that you would give us an offer within 24 hours and then close quickly I didn’t really believe that we would have the house sold in only 2 weeks. I’m glad I found you.”
Michelle L. - Michigan
“Thanks for buying my Mother’s home. It was a big help that you were able to buy it without us having to clean it out and get it ready to sell. My mother had accumulated lots of stuff and after the stress of her long illness I was exhausted and I dreaded dealing with all of it. I also liked it that you gave me a very fair price for the home. I’m on a fixed income and that really helped a lot.”
Henry G. - Michigan
“Dennis – thank you for helping us with our Mom’s home. This was a very traumatic experience for us, and we appreciated your patience with all the emotions we experienced during the process. You were really patient and understanding with us during the sale process, and we’re sure that Mom’s home will be in good hands. God Bless.”
Claudia and Nancy M. - Michigan
We Help Michigan Families Navigate These Situations Every Day
At Dennis Buys Houses, we’re not just cash buyers — we’re trusted problem-solvers who help Michigan families find real answers during difficult times.
Since 2004, we've been helping homeowners across Michigan sell their properties quickly and easily—without the stress of agents, repairs, or hidden fees.
We’re a family-owned, local business with deep roots in the community. Over the years, we’ve helped hundreds and hundreds of homeowners in situations just like yours—whether they’re dealing with delinquent property taxes, foreclosure, or simply needing a fresh start.
If you're dealing with a tough family situation and don’t know where to turn, we’re here to help.
Start here:
- Learn how we buy houses in Michigan: How It Works
- See what makes us different: Why Choose Us
- Ready to get a cash offer? Contact Us Today
Whether you’re ready to sell or just want to explore your options, we’re here for you. Call us today, and let’s talk about how we can make your situation easier.
No pressure. No judgment. Just real help when you need it.
Know Someone Who Needs to Sell Fast? We Pay Referral Fees.
Talk to Dennis Now – (734) 224-5977