Property Management Essentials: A Landlord's Complete Guide

Yes. In most states an existing lease survives the sale — the buyer becomes the new landlord and inherits the terms. Month-to-month tenancies can usually be ended with statutory notice, while fixed-term leases generally can't be cut short just because ownership changed. Investors often prefer occupied properties because income starts immediately.

State law dictates the specifics, but nearly every state requires advance notice before showings and prompt notice of a change in ownership and where rent should be sent. Security deposits also have to be transferred or accounted for at closing. Handling this cleanly avoids the deposit disputes that surface months later.

It depends on the buyer. Retail buyers who want to move in will discount for an occupied property or walk away entirely; investors will price it on the rent roll and may pay more if the lease is at market. Below-market rent, missing leases, or a history of late payments are what actually depress the number.

Beyond principal and interest: property taxes, insurance, vacancy allowance, repairs and maintenance, capital-expenditure reserves, management, and any HOA dues. Deals that look strong on paper usually fail because reserves and vacancy were left out. Census vacancy data is a reasonable free source for the local vacancy assumption.