Monday, October 12, 2009

One result of our over-supply of homes for sale is that many homesellers have turned into landlords, for good or for bad. Tightened mortgage regulations and economic hardships have increased the pool of available renters so there's a good chance a seller looking to rent their property will successfully rent it out.

Many sellers continue to market and sell their property with the permission of the tenant. Normally, tenants receive discounted rent or a lower deposit in exchange for keeping the property in showing condition and being flexible with showing appointments.

What happens when the property actually goes under contract while tenants are on property??? In Florida, the existing lease must be honored in accordance with the terms specified within the lease. So if the tenancy continues 6 months after the closing date, the new owners shall assume landlording duties and responsibilities as outlined in Ch 83 of the Florida Statutes. Many leases, especially for homes for sale, specify rights and responsibilities as it pertains to the sale and disposition of the property while being rented. Normally it requires 30 - 60 days notice to the tenant which allows them to line up other housing.

Many tenants living in a home that's also for sale, when given sufficient notice of such sale, are very cooperative. Don't forget that after the initial showing, a home that's under contract will need to have additional inspections, appraisals, and possible followup showings in accordance with the sales contract. That will require an understanding tenant and the best way to achieve that is for a Landlord to be understanding and protective of the tenant's privacy.

But what happens if there is no lease in place (a month to month for example) when a home goes under contract? Well, the law references the previous lease with respect to cancellation of an unwritten lease:

83.57 Termination of tenancy without specific term.--A tenancy without a specific duration, as defined in s. 83.46(2) or (3), may be terminated by either party giving written notice in the manner provided in s. 83.56(4), as follows:

(1) When the tenancy is from year to year, by giving not less than 60 days' notice prior to the end of any annual period;

(2) When the tenancy is from quarter to quarter, by giving not less than 30 days' notice prior to the end of any quarterly period;

(3) When the tenancy is from month to month, by giving not less than 15 days' notice prior to the end of any monthly period; and

(4) When the tenancy is from week to week, by giving not less than 7 days' notice prior to the end of any weekly period.

Basically Florida law only requires a MINIMUM of 15 days notice for a tenant on a month to month unwritten lease. That's really not much time, so I would recommend a minimum of 30 days.

Florida law also gives the landlord (or their agent) the ability to access the property to further the sale of that property. All access is conditioned upon "Reasonable Notice" to the tenant.

83.53 Landlord's access to dwelling unit.--

(1) The tenant shall not unreasonably withhold consent to the landlord to enter the dwelling unit from time to time in order to inspect the premises; make necessary or agreed repairs, decorations, alterations, or improvements; supply agreed services; or exhibit the dwelling unit to prospective or actual purchasers, mortgagees, tenants, workers, or contractors.

(2) The landlord may enter the dwelling unit at any time for the protection or preservation of the premises. The landlord may enter the dwelling unit upon reasonable notice to the tenant and at a reasonable time for the purpose of repair of the premises. "Reasonable notice" for the purpose of repair is notice given at least 12 hours prior to the entry, and reasonable time for the purpose of repair shall be between the hours of 7:30 a.m. and 8:00 p.m. The landlord may enter the dwelling unit when necessary for the further purposes set forth in subsection (1) under any of the following circumstances:

(a) With the consent of the tenant;
(b) In case of emergency;
(c) When the tenant unreasonably withholds consent; or
(d) If the tenant is absent from the premises for a period of time equal to one-half the time for periodic rental payments. If the rent is current and the tenant notifies the landlord of an intended absence, then the landlord may enter only with the consent of the tenant or for the protection or preservation of the premises.
(3) The landlord shall not abuse the right of access nor use it to harass the tenant.


Selling a property with a tenant can be an involved, sensitive situation that requires the utmost in care and compassion. When in doubt, one almost always gets more "flies" with honey rather than vinegar!

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