A letter to tenants about selling property has three jobs: tell the tenant plainly that you are selling, explain what will happen to their lease and security deposit, and set out how showings will work. Everything else is secondary. Before you write a word, settle one question that changes the whole letter: does the tenant have a fixed-term lease with a specific end date, or a month-to-month tenancy? The answer shapes almost every sentence that follows.
Read the Lease and Your State’s Notice Law First
Pull the lease out and read it before drafting. You are looking for anything that addresses sale of the property, transfer of the lease to a new owner, early termination rights, and a right of first refusal. A right of first refusal gives the tenant the first chance to make an offer before you accept one from an outside buyer. If the lease contains one, you are legally bound to honor it, and skipping that step puts you in breach of your own contract.
Then check your state’s rule on how much notice you must give before entering the unit for a showing. Florida requires 12 hours. Alaska, California, Montana, and Ohio require 24 hours. Alabama, Arizona, Delaware, Hawaii, Kentucky, Rhode Island, and Washington require 48 hours. Some states have no specific statutory requirement, though courts in those states generally expect “reasonable” notice. Whatever your state requires is the floor for what you promise in the letter, not the ceiling. Offering more notice than the law demands costs nothing and buys goodwill from a tenant whose cooperation you need.
Why Lease Type Changes the Letter
The tenant’s legal position is different in a fixed-term lease than in a month-to-month tenancy, so the letter has to say different things.
Fixed-Term Leases
If the tenant signed a lease that runs through a specific end date, the sale does not change that. The lease survives the sale. The new owner steps into your shoes as landlord, bound by every term you agreed to. The letter to a fixed-term tenant is mostly reassurance: the lease stays, the rent stays, and the security deposit transfers to the new owner. The tenant’s rights are clear and largely unchanged, which makes this the easier letter to write.
Month-to-Month Tenancies
A month-to-month tenant is in a more fragile position, and the letter needs to be more careful. A new owner who wants to occupy the property or renovate can end a month-to-month tenancy with proper notice under state law, typically 30 to 60 days. Be honest about that possibility without promising anything about what the buyer will do. If you already know the buyer plans to keep the tenant, say so. If you don’t, acknowledge the uncertainty and remind the tenant that proper notice requirements apply no matter who owns the property.
What the Letter Needs to Cover
Open with a direct statement that you intend to sell. Don’t bury it. The tenant should know the purpose of the letter in the first sentence or two. From there, work through these points in a logical order:
- Lease status. For a fixed-term lease, state that it transfers to the new owner on the same terms. For a month-to-month tenancy, explain that the arrangement continues under its current terms until either party gives proper notice.
- Security deposit. Confirm that the deposit will be transferred to the new owner at closing and that the new owner becomes responsible for returning it at the end of the tenancy. Most states require this transfer by law, and the tenant needs to know the money isn’t disappearing into the sale.
- Showing procedures. Specify how much advance notice you will give before each showing, how that notice will be delivered (text, email, phone call, written note), and what hours showings will take place. Commit to a protocol, not a vague assurance.
- Contact information. Name the person coordinating showings, whether that is you, your agent, or a property manager, and give the tenant a direct way to reach them.
- Timeline. If you have a listing date, share it. Tenants handle uncertainty poorly, and a rough timeline is better than none.
- Estoppel certificate. A brief mention is enough. At some point the buyer or their lender may ask the tenant to sign a short document confirming the basic facts of the tenancy (rent amount, deposit, lease end date, any amendments, any outstanding claims). Flagging it now prevents suspicion later.1U.S. House of Representatives. Estoppel Certificate
Showings Language That Protects Both Sides
This is where most friction happens during a sale. You have a legal right to show the property. The tenant has a right to quiet enjoyment of their home. The letter has to balance both in writing.
Commit to a specific notice period before each showing, meeting or exceeding your state’s statutory minimum. Promise that prospective buyers will be accompanied by a licensed agent and that no one will enter unescorted. Limit showings to reasonable hours and say what those hours are. Courts have found that scheduling excessive or back-to-back showings, installing lockboxes that allow unmonitored access, or holding open houses without consent can cross from legitimate selling activity into harassment of the tenant.
A cooperative tenant makes the property far more appealing to buyers. Small concessions help: scheduling showings in blocks instead of scattering them across the week, agreeing to no-showing hours the tenant requests, or offering a modest incentive for cooperation. If you plan to offer something, say so in the letter so the tenant sees the arrangement as mutual from the start.
A Sample Letter You Can Adapt
Use this as a framework. Adjust the language, numbers, and timing to your situation, lease terms, and state law.
[Your name and address]
[Date]
[Tenant name and rental property address]
Dear [Tenant name],
I’m writing to let you know that I have decided to sell the property at [address]. I expect to list it on or around [date].
Your current lease remains fully in effect and will transfer to the new owner at closing. Your monthly rent of [amount], your lease term through [end date], and all other terms stay the same. Your security deposit of [amount] will be transferred to the new owner, who will be responsible for returning it at the end of your tenancy.
[For a month-to-month tenant, replace the paragraph above with: Your tenancy will continue on its current terms. Any change, including the end of the tenancy, would require proper written notice under state law, whether given by me or by the new owner after closing.]
During the listing period, prospective buyers and their agents will need to tour the property. I will give you at least [number] hours of written notice before each showing, delivered by [method]. Showings will be scheduled between [hours] on [days]. A licensed real estate agent will accompany all visitors, and no one will enter without prior notice to you.
At some point, the buyer may ask you to sign a short document called an estoppel certificate, which simply confirms the basic terms of your lease (rent, deposit, end date). I’ll walk you through it if and when it comes up.
[If applicable: As a thank-you for your cooperation, I’d like to offer (describe incentive).]
I know this news may be unexpected, and I want to make the process as smooth as possible. If you have any questions, please contact [name] at [phone/email].
Sincerely,
[Your name]
Delivering the Letter So You Can Prove It Arrived
How you deliver the letter matters as much as what it says. If a dispute later turns on whether you gave proper notice, your word alone will not be enough.
Certified mail with return receipt requested is the standard approach. The postal service gives you a mailing receipt and a signed card when the tenant receives it, which creates a documented chain. The weakness is that tenants sometimes refuse to pick up certified mail, which can delay the process.
Hand delivery works well if the tenant will sign a simple acknowledgment with the date. Bring a witness if you can. Some landlords do both: hand the letter over in person and send a copy by certified mail, which covers the situation even if the tenant later claims they never saw it.
Email or text is convenient but may not satisfy your state’s requirements for formal notice. Check the lease. Many leases specify acceptable methods, and if yours says “written notice delivered in person or by mail,” an email will not qualify no matter how clearly it arrived.
What the Tenant Can Expect After Closing
The letter sets up the process, but the tenant will also want to know what happens on the other side of closing. For a fixed-term lease, the new owner takes over as landlord and is bound by the existing lease until it expires. Rent goes to the new owner, the deposit transfers, and the terms stay the same.
For a month-to-month tenant, the new owner can end the tenancy by giving the notice period required under state law, usually 30 days but longer in some places. The tenant should understand that possibility, and should also know that the new owner cannot change the locks on closing day. Proper notice is always required.
One boundary worth flagging if it applies to you: a sale through foreclosure is not the same as a standard sale. The federal Protecting Tenants at Foreclosure Act requires the new owner to give tenants at least 90 days’ notice before they must vacate, and a tenant with a fixed-term lease signed before the foreclosure notice can generally stay until the lease expires, unless the new owner will occupy the property as a primary residence.2GovInfo. Protecting Tenants at Foreclosure Act – Public Law 111-22, Division A, Title VII, Section 702 This will not apply to most sales, but if your situation involves financial distress on the property, the tenant may ask.