Selling a house with tenants in Queens is very common, especially with two-family and multi-family homes, but it takes more planning than selling an empty home: you need to know what kind of tenancy you have, what notice the law requires, how showings will work, and what happens to the leases and security deposits at closing. Empire Fine Homes helps owners across Queens sell occupied homes from our office at 98-05 Astoria Blvd in East Elmhurst. Alejandra Fermin (Broker/Owner) and Elias Borjas (Broker) work in Spanish and English. Call 917.554.0546 for a free, no-pressure review of your options.
This guide uses official New York State and New York City sources to explain the rules that matter most when you sell with tenants in place. Every building and lease is different, so treat this as a checklist to review with your agent and your real estate attorney, not as legal advice.
First Step in Selling a House with Tenants in Queens: Know Your Tenancy
Is the unit rent stabilized or rent controlled?
The New York Attorney General’s tenants’ rights guide explains that in New York City, rent stabilization generally covers apartments in buildings built before January 1, 1974 with six or more units, formerly rent-controlled units that were vacated without a successor, and buildings with three or more units built or renovated on or after January 1, 1974 that received 421-a or J-51 tax benefits. Rent control generally applies to buildings built before February 1947 where the tenant has lived continuously since before July 1, 1971 (NY Attorney General, Residential Tenants’ Rights Guide). Most one- and two-family homes in Queens are not regulated, but if you are not sure, check the unit’s status with New York State Homes and Community Renewal before you list.
Is there a lease, or is it month to month?
According to the Attorney General’s guide, a tenant with a lease is protected from eviction during the lease period unless the tenant violates a substantial provision of the lease. Selling the house does not by itself end a lease. Ask your attorney how the existing leases will be handled in your contract of sale.
Does Good Cause Eviction apply?
NYC’s Department of Housing Preservation and Development (HPD) explains that the Good Cause Eviction law does not cover, among others: small landlords who own 10 or fewer units in New York State, buildings with 10 or fewer apartments where the owner lives, rent-stabilized or rent-controlled units, condo and co-op units, buildings built on or after January 1, 2009 (until 30 years after the certificate of occupancy), and units renting for more than 245% of Fair Market Rent. HPD also says landlords must give a notice about whether Good Cause applies when offering or renewing a lease, not renewing, or raising the rent more than 5% (NYC HPD, Good Cause Eviction). Your attorney can confirm which exemptions fit your property.
Notice Rules If the Buyer Wants the Home Vacant
Many buyers, especially those planning to live in the home, want one or more units delivered vacant. For units that are not rent regulated, the Attorney General’s guide says a landlord who will not renew a lease, or who plans a rent increase of more than 5%, must give written notice:
- 90 days if the tenant has lived there two years or more, or has a lease of at least two years.
- 60 days if the tenant has lived there at least one year but less than two years.
- 30 days if the tenant has lived there less than one year.
The same timeline applies to ending a month-to-month tenancy. If a tenant does not leave, the guide is clear that only a court can order an eviction, carried out by a sheriff or marshal. Lockouts, changing the locks, or shutting off services are illegal, and harassing a tenant to force a move is prohibited. Build the notice period into your listing timeline from day one.
Photo: Kidfly182 / Wikimedia Commons, CC BY 4.0
Showings, Access, and Keeping Tenants on Your Side
The Attorney General’s guide says a landlord may enter an apartment with reasonable prior notice, at a reasonable time, with the tenant’s consent, to provide repairs or services, or as the lease allows. In practice, a sale goes much more smoothly when tenants are treated as partners:
- Tell them early and in writing. Explain the plan before the sign goes up.
- Schedule showings in blocks. One or two set windows a week is easier on everyone than daily visits.
- Use photos and video wisely. Ask permission before photographing an occupied unit, and lean on floor plans and exterior shots.
- Keep the home in good repair. Fix open maintenance items so the unit shows well and the tenant has no complaints.
- Consider a voluntary move-out agreement. Some sellers offer a tenant money or help to move by a set date. Any agreement like this should be written up by your attorney.
Security Deposits and Notices at Closing
The Attorney General’s guide states that when a building is sold, the landlord must transfer all security deposits to the new owner within five days or return them to the tenants, and must notify the tenants by registered or certified mail of the new owner’s name and address. For rent-stabilized buildings, the buyer is directly responsible to the tenants for their deposits. The guide also notes that deposits are capped at one month’s rent and must be held as trust funds, not mixed with the landlord’s own money. Gather each lease, rent ledger, and deposit record early. Our seller documents checklist shows what else to pull together.
Sell Occupied or Deliver Vacant?
Selling with tenants in place
Investors and buyers who want rental income often prefer a home with reliable tenants and documented rents. Our guides on buying a two-family home in Queens and multi-family homes in Corona show how buyers look at that income.
Delivering one or more units vacant
Owner-occupant buyers usually want at least one unit empty at closing. That can widen your buyer pool, but it depends on lease dates, the legal notice periods above, and the tenant actually leaving, so the contract should spell out what happens if a unit is not vacant on time.
Either way, pricing matters. Read our pricing strategy guide and our breakdown of the cost to sell a house in Queens. Open violations can also slow a multi-family sale, so check our guide to clearing ECB violation fines before selling.
Questions to Ask Before Selling a House with Tenants in Queens
- Is any unit rent stabilized or rent controlled, and how do I confirm it?
- Does Good Cause Eviction apply to my property, or am I exempt?
- When do the current leases end, and what written notice would be required?
- Will my likely buyer want the home occupied or vacant?
- Where are the security deposits held, and how will they be transferred at closing?
- How will showings be scheduled so the tenants are respected?
Every occupied sale needs a good attorney. See do you need a real estate attorney to buy or sell in Queens. If time is short, read how to sell your house fast in Queens for the best price, or visit our sellers page.
Meet Alejandra Fermin and Elias Borjas
Alejandra Fermin is Broker/Owner of Empire Fine Homes, and Elias Borjas is Broker. They are the husband-and-wife team behind Empire Fine Homes, serving buyers and sellers throughout Queens, Brooklyn, and Long Island in Spanish and English. They help clients buy and sell one- and multi-family homes, co-ops, condominiums, and inherited property. Learn more on our Meet the Team page.
Viviana Salazar wrote: “We worked with Alejandra Fermin and she was great. She had the patience and knowledge to guide us with the right price and was proactive and persistent bringing potential buyers to the door.” Read more client stories on our testimonials page.
Frequently Asked Questions
Can I sell my house in Queens with tenants living in it?
Yes. Selling a house with tenants in Queens is common. The sale does not by itself end a lease, so plan with your attorney whether the buyer will take the home with tenants or whether units must be delivered vacant.
How much notice do I have to give a tenant if I am selling?
For units that are not rent regulated, the Attorney General’s guide lists 30, 60, or 90 days of written notice for non-renewal, depending on how long the tenant has lived there. A tenant with a lease is generally protected for the lease period.
What happens to the security deposit when I sell?
You must transfer the deposits to the new owner within five days of the sale or return them to the tenants, and notify tenants of the new owner’s name and address by registered or certified mail.
Can I make a tenant leave so the house shows better?
Not by pressure. Only a court can order an eviction, and harassment, lockouts, and shutting off services are illegal. A written, voluntary move-out agreement prepared by your attorney is one option.
How much is my Queens rental property worth?
Request a free home value and we will look at both the price and how the tenancy affects it.
Can I sell my home working in Spanish?
Yes. Alejandra and Elias work in Spanish and English. Visit our Spanish-speaking Queens agent page.
Thinking About Selling a House with Tenants in Queens? Call Us Today
For a clear plan for selling a house with tenants in Queens, talk with Alejandra Fermin and Elias Borjas at Empire Fine Homes: 917.554.0546. Start at empirefinehomes.com, use our contact page, or visit 98-05 Astoria Blvd, East Elmhurst, NY 11369. Se habla español.
Featured photo: Kidfly182 / Wikimedia Commons, CC BY 4.0