Sell your rental with the tenants still in it

The lease type decides what happens

For a Rhode Island building with up to four units, state law says the buyer takes title subject to the same rights and responsibilities toward the tenants that the seller had, and the sale doesn't change a tenant's rights under an existing rental agreement.

What the new owner can do next depends on the kind of tenancy:

• A fixed-term lease, like a one-year lease, runs to its end date with the new owner as landlord.
• A month-to-month tenancy continues after the sale, and either side can end it with 30 days' written notice.
• A week-to-week tenancy takes 10 days' written notice, and a year-to-year tenancy takes notice three months before the end of the year.

I Buy Rhode Island Houses makes cash offers on Rhode Island rentals under any of these arrangements, and we'll ask to see the leases first.

Notice to tenants: showings and the sale itself

To show a unit to a buyer in Rhode Island, you give the tenant at least two days' notice, except in an emergency, and enter only at reasonable times. A tenant can't unreasonably refuse a showing, and a landlord can't use showings to harass a tenant.

After the sale, you give each tenant written notice with the new owner's name, address and phone number. That notice relieves you of liability under the rental agreement for anything that happens after it. To count, it also has to certify that you've complied with the state housing code rule on open violations: they're either corrected, or the buyer and the code officer have copies of the violation notices.

A sale to I Buy Rhode Island Houses usually means one visit to see the house, rather than a run of showings and open houses.

Security deposits when a rental is sold

Rhode Island caps a security deposit at one month's rent. When a tenancy ends, the landlord has 20 days to return the deposit with an itemized list of any deductions, counted from whichever comes last: the end of the tenancy, the tenant moving out, or the tenant giving a forwarding address. A landlord who wrongfully keeps a deposit can owe it back, plus damages of twice the amount withheld and the tenant's attorney fees.

When a building changes hands, whoever owns it when a tenancy ends is responsible for returning the deposit, so deposits are usually credited to the buyer at closing. When you sell to I Buy Rhode Island Houses, the deposits come to us at closing, and returning them later is our job.

Problem tenants and eviction in Rhode Island

For unpaid rent, Rhode Island's process starts with a written demand. Once rent is 15 days late, the landlord mails a notice demanding it, and the tenant has five days from the mailing to pay. If the rent isn't paid, the landlord can file an eviction case in District Court, or a housing court where one exists, starting on the sixth day after mailing. A tenant who hasn't had a demand notice in the past six months can still pay the back rent and court costs at the hearing.

A landlord who isn't registered with the state's rental registry, including the lead certificate for a pre-1978 unit that needs one, can't file a nonpayment eviction. How long a case takes after filing depends on the court and on the tenant.

You don't have to see an eviction through before you sell. I Buy Rhode Island Houses buys houses with tenants who are behind on rent, and houses where an eviction case is already filed. Tell us where things stand when you call.

Triple-deckers, two-families and the lead law

If you own a Rhode Island rental built before 1978, state law generally requires a lead certificate of conformance for each unit. Since January 1, 2024, that includes two- and three-family houses where the owner lives in one unit, which used to be exempt. Landlords also register every rental with the state's rental registry, filing the lead certificate or proof of an exemption for pre-1978 units, and a new owner has 30 days to register.

A rental can still be sold before it's certified. If a pre-1978 unit where a child under six or a pregnant woman lives changes hands without meeting the standard, the new owner gets up to 60 days to meet it, as long as the house has a visual inspection within 30 business days. The federal lead disclosure and the EPA pamphlet still apply to the sale. I Buy Rhode Island Houses will make an offer on a triple-decker or two-family as it is, with or without a lead certificate.

Two kinds of buyers for a Rhode Island rental

A rental with tenants in it draws two kinds of buyers. Investors buy it as a rental, tenants and all. Owner-occupants want to live there, usually with a mortgage, so in a two-family or triple-decker they need a unit to move into.

Because the leases bind the buyer of a building with up to four units, an owner-occupant may have to wait out a fixed-term lease before moving in, or give a month-to-month tenant 30 days' written notice after closing. That can narrow the pool when every unit is rented. I Buy Rhode Island Houses buys as an investor, with the tenants in place, and pays cash, so there's no buyer's loan to wait on.

Your options side by side

Which way to go depends on the leases, the house and how soon you want to be done.

What we can handle

I Buy Rhode Island Houses is a family business run by JB Jackson and his wife, Robin Adams. We're lifelong Rhode Islanders rather than a franchise, we've bought more than 3,000 houses since 1975, and we buy with our own money. We buy houses with tenants in place, including:

• Two-families (duplexes), triple-deckers and single-family rentals
• Tenants on a lease or month to month
• Tenants who are behind on rent, or an eviction that's already filed
• Pre-1978 units without a lead certificate
• A mix of rented and empty units
• Rentals that need repairs or have open code violations
• A rental you inherited along with its tenants