Buying a Home with a Tenant Still Living There – What You Need to Know

Introduction

You found the perfect home—it’s in a great neighborhood, within your budget, and checks all your boxes. The only catch? There’s still a tenant living there.

Many homebuyers don’t realize that purchasing a tenant-occupied property comes with a unique set of challenges and legal considerations—especially in the DMV area, where tenant rights are taken seriously. But don’t worry! As a REALTOR®, I’ve helped buyers navigate this process successfully, and I’m here to guide you through it too.

1. Understand Tenant Rights (They Have More Than You Think!)

One of the biggest mistakes buyers make is assuming they can immediately move in after closing. However, tenant rights don’t just disappear when a property is sold.

🏡 In Washington, DC – The law gives tenants the first right of refusal through TOPA (Tenant Opportunity to Purchase Act). This means they must be given the chance to buy the home before you do, which can delay the sale if not handled correctly.

🏡 In Maryland & Virginia – Tenant rights depend on the lease terms. In most cases, when you buy a home with a tenant, you inherit their lease, meaning you can’t ask them to leave until the lease expires—unless they agree to an early termination.

Pro Tip: Always review the lease agreement before making an offer so you know what to expect!

2. Can You Make the Tenant Leave? Not So Fast.

If the lease is month-to-month, the seller may be able to provide the required notice for the tenant to vacate before you take ownership. But if it’s a fixed-term lease, you must honor the contract until it ends—unless you negotiate a buyout with the tenant.

This is why working with an experienced REALTOR® is so important. I can help you understand your rights as a buyer and strategize the best approach to ensure a smooth transition.

3. Should You Keep the Tenant or Ask for an Empty Home?

Some buyers see a tenant as a headache, while others see an opportunity. If you’re purchasing the home as an investment property, an existing tenant means:
✔ Immediate rental income without the hassle of finding tenants
✔ A proven rental history that can help with financing approvals
✔ Less vacancy time, which keeps cash flow steady

But if you’re planning to live in the home, you’ll want to make sure the lease allows for termination with proper notice so you can move in when you're ready.

Final Thoughts

Tenant-occupied properties can be a great investment or a tricky situation—it all depends on your goals. If you’re thinking of purchasing a home with a tenant in place, let’s talk! I’ll help you navigate the legal aspects and make the best decision for your future.

📩 Send me a message today to discuss your options!