Inherited Property With Tenants — What Are Your Options?

What to Do If You Inherit a Tenant-Occupied Property in Michigan

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Inheriting a home in Michigan can feel overwhelming—especially when it comes with tenants still living inside.

While you may be grieving a loss, you’re also suddenly responsible for managing a property, navigating landlord-tenant laws, and figuring out whether or how to sell.

It’s a lot to take in, especially if you’ve never been a landlord before. If you're facing this situation, know that you’re not alone—and there are clear paths forward.

What This Topic Means in Michigan

If you inherit a home with renters in Michigan, the lease doesn't automatically end. Michigan law treats you—whether you're the executor, personal representative, or heir—as the new landlord. That means you must legally honor the current lease agreement unless the tenant agrees to leave voluntarily.

Even if the original owner has passed away, the lease survives. Fixed-term leases remain in effect until the end date, and month-to-month agreements require proper notice. If you're looking to sell the property, this arrangement could affect your timeline or your pool of potential buyers.

According to the Michigan Legislature Section 554.134, landlords must provide at least 30 days’ notice to terminate a month-to-month lease. To remove a tenant before that—or in the case of a lease violation—you must follow a formal eviction process through Michigan district court.

How This Affects Selling an Inherited Home

Selling an inherited house is already a complex process. Add in tenants, and it introduces more layers—legally, logistically, and emotionally.

Timing issues: You might need to wait for the lease to end or for tenants to vacate before listing the home.

Price limitations: Homes with tenants may sell for less, especially to buyers who want immediate occupancy.

Legal steps: Removing tenants without cause or proper notice is illegal in Michigan. If tenants won’t leave, eviction may be your only route.

Emotional burden: Asking someone to leave a home—especially someone who may have known your loved one—can be difficult. But as the new owner, it’s up to you to decide what’s best for your family’s situation.

Common Scenarios You May Be Facing

A. Fixed-Term Lease Still in Effect
You inherit the property, but a tenant’s lease runs for six more months. You can’t force them out early unless there’s a serious lease violation. Selling may need to wait—or go to an investor buyer.

B. Month-to-Month Lease
The tenant’s lease ended, and they’re staying on a month-to-month basis. You can give a 30-day written notice under Michigan law to end the arrangement.

C. No Lease, No Rent Payments
A friend or relative of the deceased may be occupying the property without a lease or rent agreement. You’ll still need to serve formal notice or begin court eviction proceedings.

D. Problem Tenants or Property Damage
The inherited tenant has caused damage or violated terms. You may issue a 7-day notice to quit for nonpayment or substantial lease violations.

Are You Trying to Understand Your Options?

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What Are Your Options?

Option 1: Sell With Tenants in Place
Some real estate investors and cash buyers are willing to buy homes with tenants still inside. These buyers may take over the lease and continue renting, but you should expect a lower offer. Still, it’s one of the fastest ways to move on without the stress of evictions.

Option 2: Wait for the Lease to End
If time isn’t urgent and you’re dealing with respectful tenants, waiting until the lease ends may be your best option. Once the lease is up, you can sell the home vacant or list it traditionally.

Option 3: Offer “Cash for Keys”
You can negotiate a voluntary move-out by offering to help the tenant with relocation costs. This approach—known as “cash for keys”—can be a faster, less stressful alternative to court eviction.

Option 4: Go Through the Eviction Process
If tenants won’t leave and you need the home vacant, eviction may be necessary. You’ll need to follow the formal steps outlined in Michigan’s Landlord-Tenant Summary Proceedings, including filing in district court, attending a hearing, and obtaining a court order.

Option 5: Sell to a Cash Buyer Who Handles the Tenants
Some Michigan home buyers—including investors—are used to purchasing inherited homes with tenants. They may buy the property “as-is” and handle the legal process themselves. This could allow you to move on faster and avoid confrontations or court dates.

Final Thoughts

If you’re looking for a more complete guide to the overall process, visit our full guide on Selling an Inherited House in Michigan.

It explains how probate, taxes, repairs, and tenant issues can all factor into your next steps.

If you've inherited a home with tenants in Michigan, you're not just managing bricks and mortar—you're navigating people, emotions, and legal timelines.

The good news is, you have options. Whether you want to honor the lease, sell quickly, or relocate the tenants, the right solution depends on your goals and your timeline.

Take a breath. You’re not stuck—and help is available if you need it.

"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.”

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FAQ: Selling an Inherited Property With Tenants

Can I sell an inherited house in Michigan with tenants still living in it?
Yes, you can. However, you may need to sell to an investor or cash buyer willing to accept the current lease, or wait until the property is vacant.


Do I need to honor an existing lease after inheriting the home?
Yes. Under Michigan law, the lease agreement survives the previous owner’s death, and you become the new landlord responsible for its terms.


How do I evict a tenant from an inherited property?
You must serve a formal notice (30 days for month-to-month, 7 days for violations) and file a case in district court to request eviction.


Can I offer money to get tenants to leave early?
Yes. Offering “cash for keys” is a legal, voluntary way to encourage tenants to vacate without going to court.


What happens if there’s no lease and the tenant won’t leave?
You still need to go through Michigan’s formal eviction process. Even without a lease, a tenant has legal rights you must follow.

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“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.”

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“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.”

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“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.”

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We Help Michigan Families Navigate These Situations Every Day

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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:

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.

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