We buy homes Memphis — and many of those homes are rentals with tenants still living in them. If you’re a landlord in Memphis thinking about selling, you’ll quickly realize that having tenants changes the process. You can’t just put a “For Sale” sign in the yard and hope for the best. Tennessee landlord–tenant laws protect renters, and you’ll need to follow the right steps when selling a tenant-occupied property.
In this guide, we’ll explain how tenant rights work in Tennessee, what eviction timelines look like, and how “cash-for-keys” agreements can help you sell smoothly. We’ll also provide a sample tenant notice letter you can use.
Can You Sell a Rental in Memphis With Tenants?
Yes. Landlords in Memphis sell occupied rentals all the time. The key question is whether you want to:
- Sell with tenants in place. Investors often prefer this since they get instant rental income.
- Sell vacant. Some buyers want a clean slate, meaning you’ll need to work with tenants to move out before closing.
Both are possible, but the approach depends on your goals and your tenant situation.
Tennessee Landlord–Tenant Laws: What You Need to Know
Tennessee has specific rules for landlords and tenants, including in Memphis. Here are the key points:
- Lease agreements are binding. If a tenant has a lease, you cannot force them out early just because you want to sell. The new owner must honor the lease until it ends.
- Month-to-month rentals. If the tenant has no fixed-term lease, Tennessee law requires 30 days’ written notice before ending tenancy.
- Tenant rights. Tenants have the right to quiet enjoyment of the property. You must give at least 24 hours’ notice before showing the home or bringing buyers for walkthroughs.
- Security deposits. These must be handled properly at sale—either returned or transferred to the new owner.
Eviction Timelines in Tennessee
If a tenant refuses to leave after proper notice, landlords can pursue eviction. The general timeline in Memphis looks like this:
- Notice to Vacate: 14 days for nonpayment of rent, or 30 days for other lease violations.
- Filing in Court: If the tenant doesn’t comply, you file an eviction lawsuit.
- Court Hearing: Usually scheduled within 2–3 weeks.
- Judgment & Writ of Possession: If you win, the court orders the tenant out, typically within 10 days.
Total timeline: Around 4–6 weeks if uncontested. Longer if the tenant fights the case.
For many landlords, this is too slow—especially if they want to sell fast. That’s why many turn to cash-for-keys agreements instead.
What Is Cash-for-Keys?
Cash-for-keys is a simple agreement where you pay tenants a set amount of money to move out voluntarily by a certain date.
Why it works:
- Tenants avoid eviction on their record.
- Landlords get the property back quickly without court delays.
- Everyone saves time, stress, and legal fees.
The amount offered usually equals 1–2 months’ rent, but it depends on urgency and the situation.
Tenant Notice Letter: Cash-for-Keys Template
Here’s a sample letter you can adapt for your rental property:
[Your Name / Company]
[Your Address]
[City, State, Zip]
[Date]
[Tenant Name]
[Tenant Address]
Dear [Tenant’s Name],
As you know, I am planning to sell the property located at [Property Address]. In order to move forward with the sale, I am offering you the option of ending your lease early with financial assistance.
I am prepared to offer you $[amount] in cash if you agree to vacate the property by [date]. This payment will be provided once the property is returned in good condition and the keys are handed over.
This arrangement allows you to move on your own terms without an eviction record. Please let me know if you accept this offer by [response date] so that we can prepare a simple written agreement.
Sincerely,
[Your Signature]
[Your Name]
You can make this letter into a downloadable PDF for your tenants.
Tips for Selling a Rental With Tenants
- Decide on your buyer type. Investors are fine with tenants, traditional buyers may not be.
- Communicate clearly. Surprises cause resistance—be upfront with tenants.
- Offer incentives. Moving is stressful, and cash-for-keys often smooths the process.
- Work with a local cash buyer. They’ll often buy with tenants in place, saving you the hassle.
FAQs About Selling Rentals With Tenants in Memphis
Q: Do I have to wait for the lease to end to sell?
A: No, you can sell anytime—but the lease stays in effect for the new owner unless the tenant leaves voluntarily.
Q: Can I show the property while tenants live there?
A: Yes, but you must give at least 24 hours’ notice and respect their privacy.
Q: What if the tenant refuses cash-for-keys?
A: Then you’ll need to either honor the lease or start eviction if they violate terms.
Q: Will a cash buyer purchase with tenants inside?
A: Many will. Cash investors often prefer tenant-occupied rentals.
Q: What happens to the tenant’s security deposit?
A: It must either be returned or transferred to the new property owner at closing.
Final Thoughts
Selling a rental in Memphis with tenants doesn’t have to be complicated. By following Tennessee’s landlord–tenant laws, respecting notice periods, and considering cash-for-keys agreements, you can make the process smoother for both you and your tenants.
If you’d rather skip the stress, local investors and cash buyers are often willing to purchase tenant-occupied properties. That way, you can sell on your timeline without navigating lengthy evictions or repairs