Selling a rental with a problem tenant does not require an eviction first. In Ohio, Texas and Georgia you can legally sell the property occupied, and the right buyer prices the situation in and handles it after closing. Here is how the process works and what it means for the numbers.
KEY FACTS FROM THIS GUIDE
- Tenant-occupied properties can be sold; leases and deposits transfer at closing
- Self-help evictions (lockouts, utility shutoffs) are illegal in OH, TX and GA
- Depreciation recapture at sale is taxed at up to 25% (IRS Pub. 544)
- A 1031 exchange defers gains if you reinvest on the 45/180-day deadlines
What are your options with a non-paying tenant?
Three paths: run the eviction yourself and sell vacant (2 to 4 months and $3,000 to $10,000 in Ohio and Georgia, often faster in Texas, plus repair surprises after move-out), offer cash for keys (faster, typically $1,000 to $5,000, but no guarantee), or sell occupied to a cash buyer and let the new owner resolve it. The third option is the only one with a fixed date and a fixed number.
How does the sale work legally with someone living there?
The lease and occupancy transfer with the deed. The buyer steps into your position as landlord at recording, inherits the deposit obligations, and pursues whatever resolution fits: a payment plan, cash for keys, or a court process. Your name comes off everything.
Put a number on the exit, then decide. Written numbers, licensed title company closings, zero pressure.
How does occupancy change the price?
An honest occupied offer subtracts the realistic resolution cost from the vacant value: expected eviction timeline in that county, lost rent, likely condition behind the door. Each adjustment should be a line you can see, not a vague discount. We show the math in writing, like every offer we make.
What should you not do?
Do not start self-help measures: changing locks, shutting utilities, removing doors. All three states treat these as illegal lockouts with real damages. And do not sign a lease termination bribe deal without documenting it; cash for keys works, but only in writing with a move-out date.
The bottom line
Put a monthly number on what the situation costs you: lost rent, taxes, insurance, stress. Compare it with a written occupied-sale offer. Most tired landlords discover the exit costs less than three more months of hoping.
Get a free written offer on your rental here, or book a free consultation and talk the situation through first.
