How to Sell a Rental Property with Tenants in Phoenix, AZ (As-Is, Without Eviction)

As a landlord, having an investment property is a great way to earn passive income, but what happens if you decide you no longer want to keep it? Dealing with tenants can be overwhelming, from having to address non-payment and damages to renter turnover and expensive and time-consuming property management.

If you’re ready to say goodbye to the frustration of owning a rental property, selling could be right for you. Unfortunately, many people believe they’re trapped with their property if it’s occupied, but that’s not always the case. The good news is, when it’s time to sell rental with tenants Phoenix residents have options.

In this article, we’ll talk about the different ways to sell occupied rental Phoenix AZ, without having to deal with the eviction process.

Can you sell with tenants in AZ?

Yes, in Arizona, you can absolutely sell your property if it has tenants. When the new buyer purchases the house, the lease automatically transfers, security deposits and any prepaid rent transfer to the new owner, who must honor the lease terms. and they effectively become the new landlord.

That’s great news for someone who’s looking to get into tenancy but doesn’t want to go through the process of buying a property, advertising it, and finding tenants. It’s important to note that the buyer must honor the terms and conditions of the existing lease, which includes all specified rights and the tenant’s security deposit.

With a fixed-term lease, the new buyer must allow the tenant to stay for the stated term, but with a month-to-month lease, there’s greater flexibility. Either party can terminate with 30 days’ written notice (timed to the rental period).

*All information is for educational purposes only and is not legal advice

Selling options (pros/ cons)

Once you decide to sell your rental property, it’s time to choose the method that’s right for your situation. Phoenix residents have three options: List with an agent, cash-for-keys, and sell as-is for cash. Each choice has pros and cons to consider.

1.    List with an agent

Listing an occupied rental with an agent gives you the highest price potential, but it comes with a cost. Depending on factors like the time of year, the property’s condition, and the real estate market, it can take up to six months or more to sell.

Rental properties can take longer to sell than traditional houses since they require a buyer with the intention to maintain the tenancy. You’ll also have to consider the tenant’s rights during the selling process. In Arizona, law generally requires at least 48 hours’ notice and entry at reasonable times for showings to prospective buyers., allowing them time to prepare the house and leave the property.

You must also clearly communicate when the property is listed and sold, to help manage their expectations and ensure a smooth transition. Another factor to consider is the tenants themselves. Potential buyers may ask the neighbors about their behavior, and if they’re loud, cause trouble, or don’t maintain the property up to their standards, it may hinder the sale.

Finally, although you may be able to sell the house for a higher price with an agent, you’re also responsible for high fees. Phoenix realtors get between 5% and 6% commission on every sale, which can really cut into your profits. The property must also pass inspections, and you may be responsible for making repairs if needed, reducing your profit margin even further.

2.    Cash for keys/ negotiated move-out

The second option when you’re ready to sell occupied rental Phoenix AZ, is cash for keys. Also called a negotiated move-out, it’s a voluntary agreement between the landlord and the tenant, where you offer them a lump sum to vacate the property by a specific date.

It’s a great choice if you want to remove the tenants quickly, or if eviction was a possibility. Cash for keys also benefits the tenants since it creates a financial incentive and helps them protect their rental history. While a negotiated move-out can be a good way to clear the property and make selling easier, it does require you to have enough cash on hand to offer the tenant a settlement.

For many landlords, accessing liquid funds isn’t always easy, which is why this option may not be the best choice. Tip: Keep it voluntary and in writing (move-out date, condition, deposit handling).

3.    Sell as-is to a cash buyer

Selling your rental property as-is to a cash buyer is by far the fastest option. You don’t have to worry about making repairs, passing inspections, or dealing with annoying showings. It’s also incredibly easy, taking only a short time for the entire process, so you can maximize your profit margins.

The key is using a reputable company like Red Rock Properties, who offer a fair cash offer based on the property’s condition and has an experienced team that makes the process quick and easy. When it comes to cash buyers Phoenix rental property owners can enjoy a fast and stress-free sale, making it the most popular choice by far!

Prefer a faster route? Start here: cash home buyers in Phoenix.

What buyers need

It’s your job as the seller to provide the buyer with everything they need to successfully manage your tenants. These documents can include:

• Leases
• Rent roll/ ledger
• Deposits
• Notices/ violations
• Maintenance history
• Photos/ condition notes
• HOA information
• Tenant estoppel (if available): tenant-signed summary of rent, deposits, and lease terms.

Leases

It’s crucial for the buyer to have the tenant’s lease on file so they can understand the terms and conditions. Providing this important documentation ensures both parties have the information necessary for a successful partnership.

Rent roll/ ledger

The rent roll/ ledger allows the new buyer to keep thorough documentation and effectively manage the property’s finances. It shows them important information like when the tenant pays the rent, if they have late payments, when the lease expires, when and what repairs were made, and how the property financially performs.

Deposits

Similar to the rent roll, providing deposit information to the buyer allows them to manage the property’s finances and keep a record of all income.

Notices/ violations

It’s crucial for the new buyer to have a record of any notices or violations by the tenant. If legal action is required, these documents play a key role and must be kept properly organized and managed.

Maintenance history

Having a record of the property’s maintenance history allows the buyer to plan for future upkeep. It also shows proof of proper upkeep, which can be helpful depending on how you plan to sell.

Photos/ condition notes

Providing the buyer with all photos and condition notes for the property is crucial with tenants. These documents can make all the difference if the tenant damages a part of the property or makes a claim about its condition.

HOA information

HOAs can be a bit of a headache, so providing the buyer with information on the rules and expectations can make their transition easier.

Roadblocks and solutions

When selling a rental property in Arizona, there are some roadblocks you may encounter that could delay or stop the sale.

Access issues

If the new buyer can’t access the property, it could cause them to look elsewhere. With a traditional sale, you must get an inspection and appraisal, which requires someone being able to get to and inside the house.

An easy way around this issue is with a cash sale. Since the property is sold as-is, there’s no formal home inspection requirement—just one coordinated walkthrough (no open houses or repeated showings), allowing you to sell quickly without worrying about accessing the house.

Non-payment

If you’ve fallen behind on your mortgage, selling your property can become complicated. Foreclosure is a nightmare and can ruin your credit.

With a cash sale, you can avoid losing your property for non-payment and, in many cases, still make a profit. Since it’s quick and easy, you don’t have to worry about a long, drawn-out sales process that can worsen an already difficult and complicated situation.

Repairs/ code violations/ HOA issues

With tenants, it’s common to need repairs on a property, but these can quickly add up and become expensive. The same goes for code violations and HOA issues, which you would need to address before listing on the market.

When you choose to sell the property as-is for cash, you don’t need to repair or fix these problems, which can save you thousands of dollars and months or years of legal battles.

The selling process

At Red Rock Properties, we buy tenant-occupied houses Phoenix landlords want to sell. The process is simple and takes a fraction of the time as traditional listings. What does selling with Red Rock Properties entail?

Call/form → quick review → **as-is cash offer** → tenant walkthrough (if needed) → close on the seller’s timeline.

That’s it! There’s no commission, and we cover the standard seller closing costs. We also handle the owner’s title policy, escrow/ settlement, recording, and transfer tax, where applicable. When you want to sell your rental property quickly, Red Rock Properties is the way to go.

Phoenix tips

To simplify the process of selling your Phoenix rental property, you’ll want to keep these helpful tips in mind.

• Respect tenant rights – Treat your tenants right and respect their rights.

• Communicate timelines – Keeping your tenants informed and up-to-date on the selling timelines allows them to prepare and adjust to the new landlord.

• Closings – Work with the buyer and choose a closing time that fits both your schedules.

FAQ

Can I sell with non-paying tenants?

Yes, you can still sell your rental property with non-paying tenants, but you’ll want to thoroughly document the situation for the new buyer.

Do I need repairs/ inspection?

No, when you sell your rental property as-is for cash, you don’t have to worry about repairs or inspections.

Will you keep the tenants?

Whether the new buyer chooses to keep the tenants is on a case-by-case basis. The sale can close with a lease in place, and depending on the terms, the new landlord must honor the tenant’s rights.

Do I have to tell my tenants I’m selling?

Yes—communicate timelines and give 48 hours’ notice for access.

What happens to the security deposit?

It transfers to the new owner along with the lease.

Can I sell with non-paying tenants?

Yes—document the issue; many investors will still buy as-is.

Are you ready to sell a tenant-occupied rental in Phoenix? Get your fair, no-obligation all-cash offer with Red Rock Properties. Experience the professional difference and enjoy a fast, stress-free sale with Arizona’s most trusted home buyers. Call today at 480-389-6484 or visit our Phoenix home buying page today!