Yes, you can sell an NYC apartment with a tenant in place: the lease survives the sale, so the buyer takes title subject to it and becomes the tenant's new landlord. Good Cause Eviction, in effect since April 20, 2024, gives covered tenants renewal rights, but the state Attorney General and HPD both list units owned as a condominium or cooperative as not covered. That makes the real choice for most sellers vacant versus occupied: an occupied unit sells mostly to investors, at a discount to the same unit delivered vacant.
Over 25+ years brokering across Manhattan, Queens, and the Bronx, I have seen that the sellers who keep the most money decide early: am I delivering this apartment vacant, or occupied? That one decision sets your price, your timeline, and which buyers show up.
The Lease Survives the Sale
Selling the apartment does not end the lease. The buyer takes title subject to the existing lease, the tenant keeps the right to stay through the lease term at the agreed rent, and you cannot promise a buyer an empty apartment on a date the lease says otherwise. A buyer reviewing your unit will want the signed lease, the security deposit records, the rent-payment history, and any side agreements. A rent-stabilized or rent-controlled unit carries its regulated tenancy rules to the buyer as well.
Good Cause Eviction: Does It Cover Your Tenant?
Good Cause Eviction is a state law that took effect April 20, 2024. In covered homes, a landlord cannot end a tenancy, which includes not renewing a lease, without a good cause reason, and a rent increase above the local rent standard can be challenged. HPD sets that standard at inflation plus 5%, capped at 10%, and lists it at 8.38% as of May 4, 2026. The AG's guide says all New York City housing is assumed covered unless an exemption applies.
| Situation | Good Cause status | What it means for delivering vacant |
|---|---|---|
| Unit is owned as a condominium or cooperative | Not covered | No Good Cause renewal right; the lease terms and building rules govern |
| Owner holds 10 or fewer units in New York State | Small-landlord exemption | Not covered; the owner must give the tenant a list of homes owned if relying on it in an eviction case |
| Owner lives in a building with 10 or fewer apartments | Owner-occupied exemption | Not covered |
| Rent-stabilized or rent-controlled unit | Regulated separately | Regulated-tenancy rules govern; vacant delivery is very difficult |
| Market-rate unit in a building built before 2009, owner with more than 10 units | Covered | Tenant has renewal rights; vacant delivery usually requires a buyout |
Other exemptions in the AG and HPD lists include buildings that received a certificate of occupancy on or after January 1, 2009 (Good Cause applies 30 years after that date) and homes renting above 245% of HUD's Fair Market Rent. The small-landlord test counts every unit an owner holds across the state, and for an LLC each individual owner must hold 10 or fewer; the owner's primary residence is left off the list. The exemption analysis turns on facts specific to your holdings, so I connect sellers to a landlord-tenant attorney before we set a strategy.
Occupied vs Vacant: What Each Is Worth
A vacant unit sells to everyone: owner-occupants and investors alike. An occupied unit sells mostly to investors, who price off the rent, so occupied units in NYC typically trade at a discount to the same unit delivered empty.
Selling occupied
- • Smaller buyer pool for a unit with a tenant in place
- • Price reflects the rent in place
- • No staging or move-out coordination; rent keeps coming
- • A below-market lease lowers the price further
- • Co-op house rules on subletting and investor purchasers apply
Selling vacant
- • Full buyer pool, including owner-occupants
- • You can stage, photograph, and hold open houses
- • Highest likely sale price for the same apartment
- • Requires the lease to end or a negotiated buyout
- • Carrying costs run while the unit sits empty
A below-market lease is the detail buyers spot first: an investor prices the apartment off the rent actually being collected, not off what the unit would rent for today. Automated estimates miss that, which is why I walk every occupied unit and read the lease before I price it. For the full picture on valuation, see how much your NYC apartment is worth.
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The Buyout Option: Cash for Keys
When vacant is worth far more than occupied, a tenant buyout can clear the unit. A buyout is a voluntary written agreement where you pay the tenant an agreed sum to surrender the apartment by a set date. It has to be agreed in writing and without pressure, and a rent-stabilized or Good Cause covered tenant calls for an attorney on your side. The payment must make sense against the gap between the vacant and occupied prices: if that gap is thin, selling occupied to an investor may net more. I run both scenarios as part of a strategic pricing and CMA before we commit to either path.
Estoppel Certificates and Disclosure
Once you go to contract on an occupied unit, expect the buyer to request a tenant estoppel certificate: a short document the tenant signs confirming the rent, the security deposit held, the lease end date, and that there are no side deals or unpaid claims. It protects the buyer from surprises and protects you from a late dispute over a lease term.
Disclose the tenancy from the first listing. An accurate listing states that the unit is tenant-occupied, names the lease end date, and shows the current rent, and buyers' attorneys will find the lease in due diligence anyway.
How to Price and Market an Occupied Unit
You are not pricing against the vacant comps down the block; you are pricing the income stream plus what happens when the lease turns over. The current rent, the lease end date, the building's subletting policy, and carrying costs all move the number. My approach: read the lease first, model the investor return at the current rent, then compare it with the net from buying out the tenant and selling vacant. The seller-side costs on either path, from transfer taxes to attorney fees, belong in that math from day one, and the seller net-proceeds guide breaks them down. Co-op and condo sales treat an occupant differently at the building level, which I cover in selling a co-op vs a condo.
Occupied-Unit Seller Checklist
- Pull the lease: confirm the end date, rent, and security deposit on record
- Check Good Cause status: with a landlord-tenant attorney, not a guess
- Run both scenarios: occupied sale to an investor vs buyout then vacant sale
- Compare rent to market: a below-market lease lowers an occupied price
- Plan the estoppel: line up the tenant certificate before contract
Selling a Tenant-Occupied Apartment?
I will run the occupied-vs-vacant math for your specific unit and lease, then build the plan that nets you the most. No obligation.
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