Tenant Rights During a Sale
New York's tenant protection laws are among the strongest in the country. A tenant with a lease has the right to remain through the end of their lease term, regardless of the sale. Month-to-month tenants must receive proper notice to vacate — 30 days for tenancies under one year, 60 days for one to two years, and 90 days for tenancies over two years.
You cannot harass, intimidate, or retaliate against tenants because you are selling the property. Tenants have the right to reasonable notice before showings (24 hours is standard practice) and to quiet enjoyment of their home during the sale process.
Preparing Tenants for the Sale
Open communication with your tenants is essential. Notify them early about your intention to sell, explain what the process will look like (showings, inspections, appraisals), and establish ground rules for property access. Tenants who feel respected and informed are far more cooperative during showings.
Consider offering incentives for cooperation: a rent reduction during the listing period, a cleaning bonus for keeping the unit show-ready, or a cash-for-keys arrangement if you need the unit vacant. These costs are minor compared to the potential impact of an uncooperative tenant on your sale price.
Marketing to Investor Buyers
When selling with tenants in place, your primary buyer is likely an investor. Marketing materials should emphasize investment metrics: current rent and lease terms, rent-to-value ratio, operating expenses, net operating income, and cap rate. Provide a rent roll, copies of current leases, and a summary of tenant payment history.
Investors value certainty. A property with long-term, on-time-paying tenants is worth more than a vacant unit to most investors — it represents day-one income with no lease-up risk. Position your tenants as an asset, not a liability, and price accordingly.