Can I sell my house with tenants in it in California?

General information, not legal or tax advice. Sidney Manzo is a real estate agent, not an attorney or tax adviser. Talk to a landlord-tenant attorney about how the Civil Code and any local rules apply to your property. Rules as of October 22, 2026; they change, so check the official sources listed below.

Can I sell a house while a tenant lives there?

Yes, you can list a rented home. The state's just-cause list for ending a tenancy doesn't include a sale. Under Civil Code section 1946.2, "after a tenant has continuously and lawfully occupied a residential real property for 12 months, the owner of the residential real property shall not terminate a tenancy without just cause, which shall be stated in the written notice to terminate tenancy". Its no-fault causes are the owner or a listed family member moving in, "Withdrawal of the residential real property from the rental market", an order from a government agency or court, and "Intent to demolish or to substantially remodel the residential real property".

That leaves two paths: sell with the tenant in place, or end the tenancy first, only for a listed cause and with the notice and relocation that cause requires. Ask a landlord-tenant attorney which path fits your property. Your attorney prepares and serves any notice.

Does the state rule apply to my house?

Civil Code section 1946.2 lists exemptions. One covers a home that is "alienable separate from the title to any other dwelling unit", if the owner isn't a real estate investment trust, a corporation, or a limited liability company with a corporate member, and the tenants got written notice that the property is exempt. For a tenancy "commenced or renewed on or after July 1, 2020", that notice must be in the rental agreement. The section also exempts a single-family, owner-occupied home where the owner "rents or leases no more than two units or bedrooms", and "Housing that has been issued a certificate of occupancy within the previous 15 years". Ask your attorney whether an exemption applies to you.

Local rules can apply instead. Under Civil Code section 1946.2, a local just-cause ordinance "adopted on or before September 1, 2019" applies, as can a later one that is more protective, and "A residential real property shall not be subject to both a local ordinance requiring just cause for termination of a residential tenancy and this section". Under Civil Code section 1947.12, the state rent cap is "5 percent plus the percentage change in the cost of living, or 10 percent, whichever is lower", with the same exemption for separately alienable homes. Both sections remain in effect only until January 1, 2030, unless the Legislature changes them.

If I want the house empty to sell

For a no-fault termination under Civil Code section 1946.2, the owner must, "regardless of the tenant's income, at the owner's option", either pay relocation assistance "equal to one month of the tenant's rent that was in effect when the owner issued the notice to terminate the tenancy", or "Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due". The statute says "Any relocation assistance shall be provided within 15 calendar days of service of the notice". It also says "An owner's failure to strictly comply with this subdivision shall render the notice of termination void", and "Any waiver of the rights under this section shall be void as contrary to public policy".

What changes in Pasadena under Measure H?

The City of Pasadena says Measure H's just-cause rules cover "Condominiums and single-family homes, regardless of when they were built", and most multi-unit properties, while rent stabilization covers "Multi-unit properties (i.e. duplex, triplex, apartments) built before February 1, 1995". City of Pasadena charter section 1804(b) says partially exempt units "are not exempt from Section 1806 (Just Cause for Eviction Protections)". Under section 1805(a), "A homeowner who is the primary resident of a Single-Family Home" may rent it out for no longer than 12 months, but not for more than a total of 12 months in any 36-month period, and the City says the tenant must be informed in writing.

The City of Pasadena's just causes in charter section 1806(a) are failure to pay rent, breach of lease, nuisance, illegal purpose, refusal to sign a new lease, failure to give access, a subtenant in sole possession, necessary and substantial repairs, owner move-in, withdrawal from the rental market and a government order. A sale isn't on the list. The City notes that the Rent Stabilization Department "does not enforce State law", and adds, "Consult an attorney to see whether the Tenant Protection Act applies to you".

Relocation in Pasadena

The City of Pasadena's 2026-2027 Relocation Fact Sheet says relocation is owed for evictions for necessary and substantial repairs, owner move-in, withdrawal from the rental market and a government order. "Fifty percent (50%) of the total Relocation Assistance must be paid to the tenant household within ten (10) days of service of the notice of termination of tenancy", and "The remaining balance of the Relocation Assistance must be paid no later than twenty-eight (28) days prior to the expiration of the written notice of termination of tenancy". Landlords must file a Notice of Intent to Terminate Tenancy with the rent board "at least 30 days prior to the date on which the landlord intends to serve the notice to tenants". The Rental Housing Board's Chapter 4 regulations, updated January 15, 2026, set the same timing.

The City of Pasadena's base payment and special circumstances payment schedule (10/1/2026 - 9/30/2027):

The City of Pasadena's moving expense allowance schedule (10/1/2026 - 9/30/2027) is $1,657 for an eligible tenant household (all adults) and $5,000 for a special circumstances household. The fact sheet defines a special circumstances household as one with at least one member who is 60 or older, qualifies as disabled or terminally ill, or has a minor child who is a legal dependent. The Rental Housing Board's Chapter 4 regulations (updated January 15, 2026) also list "A full refund of a Eligible Tenant Household’s security deposit, except for funds that may be necessary to repair Tenant’s intentional or negligent damage, beyond ordinary wear and tear, to a Rental Unit that is to be reoccupied, within the timelines proscribed by Civil Code Section 1950.5". See the City's 2026-2027 Relocation Fact Sheet.

Notices, a buyer's move-in and buyouts

City of Pasadena charter section 1806(k) requires the landlord to file with the Rental Board "a copy of any notice terminating tenancy" within three days after serving it on the tenant, and under section 1806(l), a failure to comply "is a complete affirmative defense in an unlawful detainer or other action brought by the Landlord to recover possession of the Rental Unit".

If your buyer wants to move in, their attorney will look at City of Pasadena charter section 1806(a)(9). It calls for six months' written notice, a natural-person landlord with "at least a fifty percent (50%) recorded ownership interest", a move-in "within sixty (60) days after the Tenant vacates", and occupancy "for at least thirty-six (36) consecutive months", with added protections for some long-term tenants who are 60 or older, disabled or terminally ill.

A negotiated move-out is a buyout agreement under City of Pasadena charter section 1810: "Before making a Buyout Offer, the Landlord shall provide the Tenant(s) with a notice" on the Rental Board's form. The tenant has a "right to cancel a Buyout Agreement for any reason for up to 45 days after execution by the Landlord and the Tenant", and the agreement is filed with the Rental Board "within 60 days of the Buyout Agreement execution". Ask your attorney to draft it.

After closing, City of Pasadena charter section 1812(c) says, "In the event of any change in Property ownership, the new owner must register or update the Rental Registry within 30 days of the change of ownership". The City's coverage page also says owners of covered units must pay interest on security deposits, register their units and pay the annual Rental Housing Fee.

What about Altadena and other cities?

For unincorporated Los Angeles County, which includes Altadena, the DCBA lists "Partially Covered Units (Eviction protections only)" as "Most rental units, including Single Family Homes (SFH) & Condos, unless exempt". Fully covered units, which also have rent limits, have a "Certificate of Occupancy (or its equivalent) issued on or before February 1, 1995" and are a "Residential unit on a property with two (2) or more units". The DCBA's no-fault causes, which "may require relocation assistance", include "Landlord or Landlord's Family Member Move-in" and "Withdrawal of Fully or Partially Covered Rental Units from Rental Market". The DCBA's rent stabilization program page, listed in the sources below, explains how to check a property in the County Rent Registry by address or APN and how to confirm it is unincorporated with the Registrar-Recorder's district map.

Outside Pasadena and unincorporated County areas, start with the state rules in the Civil Code above, and check with your city whether it has its own rent or eviction ordinance.

How do showings and the security deposit work?

Under Civil Code section 1954, a landlord may enter to "exhibit the dwelling unit to prospective or actual purchasers". The landlord gives "reasonable notice in writing" and enters "only during normal business hours"; "Twenty-four hours shall be presumed to be reasonable notice in absence of evidence to the contrary". For showings to buyers, notice may be given orally if the tenant was notified in writing "within 120 days of the oral notice that the property is for sale", and the landlord must "leave written evidence of the entry inside the unit". The statute adds, "The landlord may not abuse the right of access or use it to harass the tenant".

For more on the sale itself, see selling a house in Pasadena, and if you plan to sell the rental without repairs, see as-is sales.

Under Civil Code section 1950.5, "Upon termination of the landlord's interest in the premises, whether by sale", the landlord must, within a reasonable time, either transfer the remaining deposit to the buyer and notify the tenant, or return it to the tenant with an accounting. "Prior to the voluntary transfer of a landlord's interest in the premises, the landlord shall deliver to the landlord's successor in interest a written statement" of the deposit and any deductions. Ask your escrow officer how it's handled at closing.