Listing Selling Your San Francisco Property with Tenants? A Simple Guide (2025)

Selling property in San Francisco can be hard. Also, it’s often harder if tenants live there. San Francisco has strong rules protecting tenants. These rules are mainly in the San Francisco Rent Ordinance. Therefore, you must understand these rules to sell legally. This guide shows the main steps.

1. Know SF Tenant Protection Rules

First, learn the main rules that affect your sale. These include:

SF Rent Ordinance: This law controls rent and evictions for most SF rentals. So, learn its rules. You can find info on the SF Rent Board
“Just Cause” Eviction: Importantly, you need a good legal reason (a “just cause”) to make a tenant leave. Selling the property is not a just cause by itself. Instead, the tenant usually stays with the new owner.
Ellis Act & Owner Move-In (OMI): These are just causes for eviction. But they have very strict rules. Plus, they require large payments to tenants. (See Step 6 for more).
Tenant’s Right to Buy: Finally, in some cases (like certain building types), tenants might have the first chance to buy the property.

Key Point: So, assume the tenant stays after the sale unless you follow all steps for a legal “just cause” eviction.

2. Pick Your Selling Plan: Keep Tenants or Sell Empty?

You generally have two main choices:

Sell with Tenants Living There

Good: First, the new buyer gets rent money right away. Also, you don’t need to handle an eviction.
Bad: However, fewer people may want to buy (mostly investors). Plus, showings can be hard to schedule. And you might get a lower price.

Your Second Choice: Sell the Property Empty

Good: On the plus side, more buyers will be interested. Also, it’s easier to show the property. And you might get a higher price.
Bad: But you must follow strict legal steps to end the tenancy (like OMI or Ellis Act). Also, this takes time and costs money (relocation pay). Remember to talk to a lawyer first.

3. Talk Clearly with Your Tenants

Next, good communication is key. Be honest and respectful.

Tell tenants (in writing) you plan to sell.
Then, explain how showings and checks will work.
Also, tell them you will follow their rights under the SF Rent Ordinance.
“Cash for Keys”: You could also offer tenants money to move out willingly. This is called a Tenant Buyout. But San Francisco has strict rules for these deals. So, get legal advice before offering a buyout.

4. Check the Tenant’s Lease Carefully

Another step is to check the lease agreement carefully. Look for:

First, the lease end date. (But know that SF rules often protect tenants even after the lease ends).
Second, rules about how and when you can enter for showings. (You must still follow the law).
Third, rules about subletting (if someone else lives there with the tenant).

Remember: SF protects most tenants strongly, even if they pay month-to-month.

5. Follow Rules for Showing the Property

Regarding showings, California law (CA Civil Code 1954) has rules for entering a tenant’s home.

Give written notice at least 24 hours before each
Also, plan visits during normal business hours.
And try to work with the tenant’s schedule if possible.
Give notice the way the law requires (usually mail or posting). Email/text might work only if the lease clearly says it’s okay for legal notices.

6. Options to Sell Empty: OMI, Ellis Act & Moving Costs

Want to sell the property empty? Then you might use these options. But talk to a lawyer first!

Owner Move-In (OMI): This lets you (the owner) or a close family member move in. You must give proper notice (usually 60 days). You also need to file legal papers. And importantly, you must pay the tenant large relocation payments. There are rules about renting the unit again later. (Repetitive start fixed here)
Ellis Act: This lets you take all units in the building off the rental market. You must give long notice (120 days, or 1 year for seniors/disabled tenants). You also must pay large relocation payments. Strict rules limit renting again later.

Key Point: Relocation costs are set by the SF Rent Board. They can be very high (many thousands of dollars). So, check the Rent Board website for current amounts. Again, get legal help before starting OMI or Ellis Act.

7. Work with an SF Real Estate Expert

Because selling with tenants in SF is tricky, you need help from someone experienced. Therefore, a good local agent can:

Help you understand SF Rent Ordinance
Also, help plan showings respectfully and legally.
Plus, market the property well to the right buyers (like investors).
And suggest good SF tenant-landlord lawyers.

8. Market Your Property Smartly

If selling with tenants, then focus your marketing:

For example, show the property has steady tenants and rent income.
Also, point out why renters like the location.
And clearly list the current rent and lease details.
You might also mention if a new owner could possibly move in later (if allowed, but they still inherit the tenant first).
Finally, target investors. Some buyers look for 1031 exchange

9. Tell Buyers Everything the Law Requires

Next, you must be honest and open with buyers. You need to share:

Copies of the lease.
Also, current rent amount and if the tenant pays on time.
Plus, info about past rent increases or legal notices given.
And info about any arguments or complaints with the tenant.
Be sure to use a Tenant Estoppel Certificate. (This form lets the tenant check lease facts. It helps the buyer.)

So, your agent and lawyer help make sure you share all needed info.

10. Be Ready for a Longer Sale Time

Finally, know that selling with tenants usually takes longer in San Francisco. Why?

Because scheduling showings is harder.
Also, fewer buyers are looking for properties with tenants.
And SF rules add extra steps.

So, plan for the sale to take more time.

Final Thoughts: Success Needs Planning and Expert Help

Overall, selling a property with tenants in San Francisco is possible. But success depends on:

First, Knowing the Rules: Learn the SF Rent Ordinance.
Second, Respecting Tenants: Talk clearly and follow their rights.
Third, Getting Expert Help: Use an experienced SF real estate agent and a skilled SF tenant-landlord lawyer.
Fourth, Planning Carefully: Choose your plan (sell occupied or empty) and follow all legal steps.

In short, with good planning and the right team, you can sell your property.