Selling a rental property with tenants in Pennsylvania or New Jersey
Short answer
Yes, you can sell a rental with tenants in it in Pennsylvania or New Jersey, and the buyer takes over as landlord. In New Jersey, most residential tenants can only be removed for one of the "good cause" grounds in the Anti-Eviction Act, and a sale by itself is not one of them; the main exception lets a small-building owner end a tenancy for a buyer who will live there. Pennsylvania has no statewide good-cause rule, but the notice periods in its Landlord and Tenant Act of 1951 still apply.
New Jersey: why a sale alone isn't grounds to remove a tenant
New Jersey's Anti-Eviction Act says a residential tenant may not be removed except for one of the grounds it lists, such as nonpayment, serious lease violations or the owner's plan to personally occupy a small building (N.J.S.A. 2A:18-61.1). It also says a landlord may not evict "or fail to renew any lease" except for good cause (2A:18-61.3(a)). Selling the property isn't on the list.
The law follows the building, not the seller. A tenant "may not be removed by any order or judgment for possession" by the owner's "successor in ownership," except for good cause or in a few narrow situations (2A:18-61.3(b)). So a buyer who wants the tenant gone faces the same rules you did.
There are limits on who the Act covers. It doesn't apply to owner-occupied premises with not more than two rental units, or to transient or seasonal rentals (2A:18-61.1). If you live in a two-family house and rent the other side, different rules may apply; ask a New Jersey landlord-tenant attorney.
The small-building exception for owner-occupant buyers
Subsection l(3) allows removal when "the owner of a building of three residential units or less" has contracted to sell the unit to a buyer "who wishes to personally occupy it," and the contract requires the unit to be vacant at closing (2A:18-61.1(l)(3)). Notice rules matter here:
- The tenant must get two months' notice before an action is filed (2A:18-61.2(f)).
- If there's a written lease in effect, no action can be filed until the lease expires (2A:18-61.2(f)).
- The notice must specify the cause in detail and be served the way the statute directs, for example personally or by certified mail (2A:18-61.2).
This exception does not help when the buyer is an investor who will rent the unit out. In that case, plan to sell with the tenant in place.
Pennsylvania Landlord and Tenant Act basics
Pennsylvania doesn't have a statewide rule like New Jersey's that limits ending a tenancy to good cause. When a lease term ends, the landlord can give a written notice to quit under section 501 of the Landlord and Tenant Act of 1951 (Act 20 of 1951):
| Question | New Jersey | Pennsylvania |
|---|---|---|
| Can the sale itself end the tenancy? | No. Removal needs a statutory ground, and a buyer is bound by the same rule (2A:18-61.1, 61.3) | A sale doesn't end an existing lease; at the end of the term the owner can give notice to quit |
| Notice to end at lease end | Depends on the ground; two months for the owner-occupant buyer ground (2A:18-61.2(f)) | 15 days for a term of one year or less or an indeterminate term; 30 days for a term over one year (§ 501(b)) |
| Security deposit limit | 1.5 months' rent (46:8-21.2) | Two months' rent in the first year, one month after that (§ 511.1) |
| Deposit on sale | Turn over with interest at deed delivery or within 5 days; notify tenant by registered or certified mail (46:8-20) | No specific transfer-on-sale section in the 1951 Act; handle it in the sale contract |
| Returning the deposit at move-out | Within 30 days after the lease ends (46:8-21.1) | Within 30 days, with a written list of any damages (§ 512) |
Local rules can add requirements. Philadelphia in particular has its own licensing and tenant protections, so check the city's rules before you send any notice there.
Philadelphia rental licensing and the Certificate of Rental Suitability
Philadelphia landlords need several things in place, and a sale touches most of them (Rent your property long-term):
- Rental License. Required to rent out dwelling units; one license covers all units in a single building. Licenses are not transferable, so the buyer must close the old license and apply for a new one (Get a Rental License). The fee is listed as $69 per unit, with no fee for owner-occupied units.
- Certificate of Rental Suitability. Landlords must give new tenants a copy issued no more than 60 days before the lease starts, and need a new one each time they rent to a new tenant or renew a lease. It can't be issued while there are outstanding violation notices on the property, except violations pending appeal (Get a Certificate of Rental Suitability).
- Partners in Good Housing guidebook and lead certification. New tenants must receive the guidebook, and owners of homes built before March 1978 must submit lead certification and inspection reports (City of Philadelphia).
For a seller, the practical point is that open L&I violations can block the buyer from getting a new certificate for the next tenant. A buyer will factor that into the price. See our guide to selling a house with code violations in Philadelphia.
Security deposit transfer at closing
New Jersey is specific. When you convey the property, you must turn over each tenant's deposit plus the tenant's share of interest to the buyer "at the time of the delivery of the deed" or within five days, and notify the tenant by registered or certified mail with the buyer's name and address (N.J.S.A. 46:8-20). The buyer has a duty to get the deposits from you. A seller who turns the deposit over is relieved of liability for it (46:8-21).
Pennsylvania's 1951 Act limits deposits and sets the 30-day return rule (§§ 511.1, 512), but it has no section like New Jersey's for a voluntary sale. Put the transfer in writing anyway: list each deposit and any interest owed, credit it to the buyer at closing, and send the tenant a letter with the new owner's contact details.
Selling tenant-occupied as-is
Many investors buy rentals with tenants in place, which avoids vacancy and turnover costs. A cash buyer will want the lease, a rent ledger, the deposit amounts and, in Philadelphia, the license and violation history. If the house needs work or a tenant is behind, you can sell as-is and let the buyer take over the lease, the license application and the repairs. We buy in Philadelphia, Trenton and Camden County, and across Pennsylvania and New Jersey.
Frequently asked questions
Can I evict a tenant in New Jersey because I'm selling the house?
Not for the sale alone. Under the Anti-Eviction Act (N.J.S.A. 2A:18-61.1), removal needs a listed ground. The exception is a building of three units or less sold to a buyer who will personally occupy the unit under a contract requiring vacancy at closing, with two months' notice and not before a written lease expires.
Does a NJ buyer have to keep my tenants?
Generally yes. A new owner can't remove a covered tenant except for good cause (N.J.S.A. 2A:18-61.3(b)), so the buyer inherits the tenancy and its rules.
How much notice does a Pennsylvania tenant get when the lease ends?
Under section 501(b) of the Landlord and Tenant Act of 1951, a notice to quit at the end of a term is 15 days for a lease of one year or less or an indeterminate term, and 30 days for a lease of more than one year. Check your lease and any local rules too.
What happens to the security deposit when I sell in New Jersey?
You turn it over with the tenant's share of interest to the buyer when the deed is delivered or within five days, and notify the tenant by registered or certified mail (N.J.S.A. 46:8-20).
Does my Philadelphia rental license transfer to the buyer?
No. The City says Rental Licenses are not transferable. The new owner must close the old license and apply for a new one.
Can I sell a Philadelphia rental with open L&I violations?
Yes, but the buyer can't get a Certificate of Rental Suitability for a new tenant or renewal while there are outstanding violation notices, except those pending appeal. Expect the buyer to price that in.
Sources
- New Jersey Statutes: 2A:18-61.1, 2A:18-61.2, 2A:18-61.3, 46:8-20, 46:8-21, 46:8-21.1, 46:8-21.2
- Pennsylvania General Assembly, Landlord and Tenant Act of 1951 (Act 20 of 1951), sections 501, 511.1 and 512
- City of Philadelphia, Rent your property (long-term), Get a Rental License and Get a Certificate of Rental Suitability
This is general information, not legal or tax advice. Tenant protections differ by building size, lease terms and municipality, and some towns have their own rent or registration rules. Talk to a landlord-tenant attorney in your state before you serve any notice or sign a contract that requires the property to be vacant.