Yes, you can sell a house with tenants in Georgia. A sale does not cancel the lease. The buyer takes the house subject to it, becomes the new landlord, and the security deposit moves with the house. Your choices are selling with the tenant in place, waiting for the lease to end, or offering the tenant a chance to buy.
Can you sell a rental house in Georgia while tenants live there?
You can. Georgia does not require a rental to be empty before it is sold. The Georgia Landlord-Tenant Handbook, published by the state's Department of Community Affairs, explains that a new owner is generally bound by the existing leases and cannot raise the rent or change the rules until the lease allows it.
That shrinks your buyer pool. Many people buying a home to live in need it empty, while investors often prefer a house that already has a paying tenant.
Before you do anything, pull out the lease and read it. Look for:
- The end date, and whether it renews on its own
- Rules on when and how you can enter the home
- Any early-termination clause tied to a sale
- Any option to purchase or right of first refusal given to the tenant
How much notice do you have to give a tenant before a showing in Georgia?
Georgia law does not set a fixed number of hours or days of notice before a landlord enters. The lease controls. The state handbook says most leases allow reasonable access after notice, and that entering at unreasonable times may breach the lease. If a lease gives the landlord no right to enter at all, the tenant can refuse entry except in an emergency.
Showings go best when you work with the tenant, not around them:
- Give written notice of each showing, even if the lease does not require it
- Group showings into set windows so the tenant is not disturbed every day
- Offer a small rent credit for keeping the home show-ready
- Never let buyers or agents in without the tenant knowing
What happens to the security deposit when you sell?
Georgia's security deposit rules are in O.C.G.A. § 44-7-30 through 44-7-37. According to the state handbook, when a rental is sold the former owner must either transfer the deposit to the new owner, who then becomes responsible for it, or refund it to the tenant. If neither happens, the tenant can sue to recover it.
The simplest way is at closing: the deposit is credited to the buyer on the settlement statement, so the money follows the house. Bring the lease, the deposit amount and any move-in damage list.
A few related rules to know:
- For leases signed or renewed on or after July 1, 2024, a deposit cannot be more than two months' rent (O.C.G.A. § 44-7-30.1).
- Larger landlords, and anyone using a paid manager, must keep deposits in a separate escrow account and tell the tenant where it is (O.C.G.A. § 44-7-31). Owners with ten or fewer units who manage them themselves are exempt from some of these rules (O.C.G.A. § 44-7-36).
Do tenants have to be told about the new owner?
Yes. Under O.C.G.A. § 44-7-3, a landlord must give tenants, in writing, the name and address of the owner (or the owner's agent) and the person managing the property. When that information changes, tenants must be told within 30 days, in writing or by a notice posted in a conspicuous place.
A joint handoff letter from you and the buyer should say who owns the house now, where to send rent and from what date, who handles repairs, and that the deposit moved to the new owner.
Can you end a month-to-month tenancy to sell?
If the tenant has no lease, or the lease ended and you kept accepting rent, Georgia treats it as a tenancy at will. Under O.C.G.A. § 44-7-7, the landlord must give two months' notice (the state handbook says 60 days) to end it. The tenant only has to give 30 days.
If there is a fixed-term lease, you generally cannot end it early just because you want to sell, unless the lease says so. You can wait it out, sell with the lease in place, or ask the tenant to agree to leave early.
What is cash for keys, and when does it make sense?
Cash for keys is a simple deal: you pay the tenant to move out by a set date and leave the home in agreed condition. It is voluntary on both sides. It often costs less, and moves faster, than going to court.
If you try it, put it in writing. A clear agreement covers:
- The move-out date
- The amount, and that it is paid when the keys are handed over and the house is empty
- The condition the home must be left in
- How the security deposit will be handled
How does eviction work in Georgia if the tenant will not leave?
In Georgia, an eviction is called a dispossessory action. Most are filed in the magistrate court in the county where the property sits. Self-help eviction, like changing the locks or shutting off utilities, is illegal.
Since July 1, 2024, if the eviction is for unpaid rent, the landlord must give the tenant written notice to pay or leave at least three business days before filing. Once served, the tenant has seven days to answer. Court takes time and money, and the outcome is up to the judge, so many landlords try cash for keys first.
What are your options for selling a tenant-occupied house?
1. Sell to an investor with the tenant in place
Pros: No need to wait for the lease to end or to remove anyone. The rent keeps coming in until closing. Investors are used to tenants, deposits and leases. Cons: An investor will usually pay less than a buyer who wants to live in the home. You also still need the tenant's cooperation for a walk-through.
2. Wait for the lease to end, then list it
Pros: An empty house can be repaired, cleaned and listed to the widest pool of buyers, which often brings the highest price. Cons: You carry the mortgage, taxes and insurance while it sits empty, plus any make-ready costs, commissions and time on market. If you want to compare those costs, see our page on selling to an investor versus listing with an agent.
3. Offer the tenant a chance to buy
Pros: No showings, no move-out and a buyer who already knows the house. Cons: Many tenants cannot get a mortgage quickly, so the deal can drag or fall apart. Check whether the lease already gives the tenant an option or a right of first refusal, since that may require you to offer it to them first.
If the house is in great shape and the lease ends soon, waiting and listing may net the most. If the tenant is behind on rent, the house needs repairs, or you are done being a landlord, selling with the tenant in place is often simpler.
How we buy tenant-occupied houses
We are a local cash home buyer in metro Atlanta, based in Roswell. We buy houses as-is, including houses with tenants in them. There are no commissions or fees, no repairs and no cleaning, and we pay all closing costs. We close at a local title company, in as little as 7 days or on the date you choose, and we can take over the lease and deposit at closing. You can read more about how our process works.
We will not be the highest offer in every case. If your goal is top dollar and you have time, listing after the lease ends may be better, and we will tell you so.
Frequently asked questions
Does the lease end when a house is sold in Georgia?
No. The new owner generally takes the house subject to the existing lease. The tenant can stay through the lease term on the same rent and rules.
Does the tenant have to let buyers in for showings?
It depends on the lease. Georgia has no statute setting a notice period, so the lease terms on access control. If the lease gives no right of entry, the tenant may refuse except in an emergency.
Who gets the security deposit after the sale?
The former owner must either pass it to the new owner, who then owes it to the tenant, or refund it to the tenant. Most sellers handle this as a credit to the buyer at closing.
How much notice do I give a month-to-month tenant in Georgia?
Two months, or 60 days, under O.C.G.A. § 44-7-7. The tenant must give you 30 days.
If you own a rental anywhere in metro Atlanta and want to see what a cash sale with the tenant in place looks like, request a no-obligation cash offer or call (404) 480-0577.
This is general information, not legal or tax advice. Talk to a Georgia attorney or tax professional about your situation.