Being a landlord looked good on paper. Passive income, building equity, tax benefits. That’s what everyone told you when you bought that rental property in Huntsville.
But now? Late-night maintenance calls. Tenants who pay rent late or not at all. Property damage. Neighbor complaints. Constant repairs eating into your supposed “profit.” And that passive income? It’s anything but passive.
You’re tired. You want out. But you’ve got tenants living in the property right now, and you’re not sure how to sell with people still there.
I’m Brandon, and my partner David and I run Yellowhammer Home Buyers. We’ve purchased over a dozen Huntsville rental properties from burned-out landlords, many with tenants still in place. I’m going to walk you through your real options and what actually works.
Why Huntsville Landlords Burn Out
Let me guess your situation. You bought this rental property 5, 10, maybe 15 years ago thinking it would be easy money. Here’s why it’s not working out:
The “Good” Tenants Moved Out
You had great tenants for the first few years. They paid on time, took care of the place, never called with problems. Then they bought their own house and moved out.
Now you’re on tenant number three or four, and each one has been progressively worse. Late payments, damages, drama with neighbors, constant maintenance requests.
Repairs Are Eating All Your Profit
Your property was built in the 1970s or 1980s. Things break. HVAC systems die. Roofs leak. Plumbing fails. Every time you finally save up some rental income, another $2,000 repair hits.
Last year you probably broke even or actually lost money when you factor in all the repairs, vacancy periods, and headaches.
You’re Managing From a Distance
Maybe you live in another state now, or even just across town. Managing a rental property remotely is exhausting. Every issue requires coordinating contractors, checking their work, paying invoices, dealing with tenant complaints.
Alabama Landlord-Tenant Law Is Tenant-Friendly
Evicting a bad tenant in Alabama takes months and costs thousands. Even when they stop paying rent, you can’t just change the locks. You have to file paperwork, go to court, wait for hearings, hire a lawyer.
Meanwhile, they’re living in your property rent-free for 3-4 months while you make the mortgage payment.
Can You Legally Sell with Tenants in Place?
Yes, absolutely. But there are rules you have to follow.
If They Have a Lease
If your tenants have an active lease (6 months, 1 year, whatever), that lease typically transfers to the new owner. You can’t just kick them out because you’re selling.
The buyer either:
- Honors the existing lease and becomes the new landlord
- Negotiates with tenants to pay them to leave early
- Waits until the lease expires
Most traditional buyers don’t want to inherit someone else’s tenants. They want to move in themselves or pick their own tenants.
If They’re Month-to-Month
If your tenants are on month-to-month after their lease expired, you can give them notice to vacate. In Alabama, you typically need to give 30 days’ written notice.
But here’s the problem: getting them to actually leave in 30 days is another story. If they don’t leave, you’re back to the eviction process.
You Must Give Proper Notice for Showings
Alabama law requires you to give tenants reasonable notice (usually 24 hours) before entering the property, even if you own it. You can’t just show up with buyers whenever you want.
This makes selling traditionally really difficult because you’re constantly coordinating with tenants who don’t want their home being shown to strangers.
Your Options for Selling a Rental Property with Tenants
Let’s talk about what actually works versus what sounds good but doesn’t.
Option 1: Wait for the Lease to End
Best for: Landlords with short leases (3 months or less remaining) and good tenants
Timeline: However long until lease expires, then 2-3 months to sell traditionally
The problem: You’re stuck being a landlord for months longer. And when the lease ends, the tenants might not leave voluntarily. Then you’re evicting them, which adds another 3-4 months.
We’ve seen landlords wait a year trying to get tenants out before they can sell. That’s another year of dealing with all the stuff you’re trying to escape.
Option 2: Pay Tenants Cash-for-Keys
Best for: Month-to-month tenants who might leave peacefully with incentive
How it works: Offer tenants $1,000-$3,000 to leave within 30 days
The problem: They might take your money and still not leave. Or they’ll demand more once they realize you’re desperate. And you’re out $2,000+ either way.
Option 3: Evict the Tenants First, Then Sell
Timeline: 3-6 months for eviction, then 2-3 months to sell = 5-9 months total
Cost: Attorney fees ($1,500-$3,000), court costs ($300-$500), lost rent (3-6 months), probably property damage you’ll need to repair
The reality: By the time you evict them, pay for repairs, and sell traditionally, you’ve spent 6-9 months and $5,000-$10,000+. And you’re still making mortgage payments the whole time.
Option 4: Sell to Another Landlord with Tenants in Place
Best for: Properties with good tenants on long leases in desirable areas
The reality: Most landlords don’t want to inherit someone else’s tenant problems. They know if you’re selling, there’s probably a reason. The tenants are probably difficult, or the property needs too much work.
And landlord-buyers are investors. They’ll offer you 60-70% of market value at best because they’re buying for cash flow, not retail price.
Option 5: Sell As-Is to Cash Buyer (With or Without Tenants)
Best for: Almost every tired landlord
Timeline: Close in 2-3 weeks
How it works:
- We buy the property as-is
- We handle the tenant situation after closing
- You walk away immediately
- No repairs, no evictions, no waiting
Why this works: We’re not buying it to live in. We’re investors who know how to handle tenant situations. Whether they’re good tenants we keep, or problem tenants we need to work with, that’s our job after we own it – not yours.
Real Huntsville Landlord Stories
Case Study #1: David’s Tired Landlord Burnout
Property: 4319 Baywood Dr, Huntsville, AL 35805
Challenge: Tired of Landlording + Needed Plumbing Repairs + Wanted Out
David owned this rental property in Huntsville and was completely burned out. The tenants weren’t terrible, but they weren’t great either. Every month was something – late rent, complaints, maintenance issues.
The property needed plumbing repairs he didn’t want to deal with. He lived across town and was tired of driving over there to handle issues.
He’d been a landlord for 8 years and just wanted out. We bought the property as-is with the tenants still in place. We handled the plumbing repairs ourselves after closing. David closed in less than 30 days and never had to deal with another tenant issue.
Case Study #2: Deodor’s Madison Rental Nightmare
Property: 131 Westscott Dr, Madison, AL 35758
Challenge: Tired Landlord + Electrical Issues + Done with Tenants
Deodor had been renting this Madison property but got completely burned out dealing with tenant problems. The property needed electrical updates, and his current tenants were behind on rent and causing issues.
He didn’t want to evict them (too expensive and time-consuming), but he also couldn’t sell traditionally with problem tenants in place.
We bought the house as-is with the tenant situation included. We closed in 7 days. Deodor handed us the keys and walked away from a situation that had been stressing him out for years.
What We Actually Do for Burned-Out Landlords
Here’s our real process:
Step 1: Call Us About Your Rental Situation
Tell us about your property: (256) 795-3014 or contact us online. We need to know:
- Are tenants currently in the property?
- Are they on a lease or month-to-month?
- Are they paying rent? Up to date or behind?
- What repairs does the property need?
- Why do you want to sell?
Step 2: We Inspect the Property
We come see the property. If tenants are there, we coordinate with them (with your permission). We look at condition, needed repairs, and the overall situation.
We’ve dealt with all types of tenant situations:
- Good tenants who want to stay
- Bad tenants who need to leave
- Tenants behind on rent
- Properties completely vacant
- Everything in between
Step 3: Written Cash Offer Within 24 Hours
We make you an offer based on:
Market rent potential (if property is rentable)
or Market value (if selling to owner-occupant)
minus Needed repairs
minus Tenant situation costs (if applicable)
minus Our costs and profit
equals Your cash offer
If tenants are current and good, that actually helps the value. If they’re problems, we factor in the cost and hassle of dealing with them after we take ownership.
Step 4: Close in 2-3 Weeks
We close at a local title company. You sign papers, hand over keys and all tenant documents, get your check. Done.
From that moment forward, the tenant situation is ours to handle. Not your problem anymore.
What Happens to the Tenants After We Buy?
Good tenants on lease: We usually honor their lease and keep them as tenants. Why evict someone who pays on time and takes care of the property?
Problem tenants: We have experience handling difficult tenant situations. Whether that’s cash-for-keys, lease violations, or formal eviction, we handle it professionally. But that’s our problem after closing, not yours.
Month-to-month tenants: We evaluate case-by-case. Good tenants might stay. Problem tenants get notice to vacate or cash-for-keys offers.
The Real Math: Keep Renting vs. Sell Now
Let me show you why selling now usually makes more sense than trying to keep renting.
Scenario: Keep Renting for One More Year
Monthly rent: $1,200
Mortgage payment: -$850
Property tax: -$150/month
Insurance: -$80/month
Maintenance/repairs: -$200/month (average)
Vacancy (one month): -$1,200
Monthly profit: -$80
You’ll lose $960 over the next year, plus deal with all the headaches.
Scenario: Sell Now As-Is
Your Huntsville rental is worth $180,000 retail. You owe $130,000.
- Sell as-is for $155,000 (we factor in repairs and tenant situation)
- Pay off $130,000 mortgage
- Pay zero commission
- Pay zero closing costs
- Net: $25,000 cash
You walk away with $25,000 and zero stress. No more tenants, no more repairs, no more being a landlord.
FAQ: Selling Rental Property with Tenants
Q: Can I sell while tenants are still living there?
A: Yes. To cash buyers like us, it doesn’t matter. We buy properties with tenants in place all the time.
Q: Do I have to evict tenants first?
A: No. We handle the tenant situation after we own the property. That’s our job, not yours.
Q: What if tenants are behind on rent?
A: Doesn’t matter to us. We factor it into our offer and deal with collecting or evicting after closing.
Q: Will I get less money because tenants are there?
A: Only if they’re problem tenants. Good paying tenants actually help value because we can keep them as renters.
Q: How fast can you close?
A: Usually 2-3 weeks. We’ve closed rental properties in as little as 10 days when landlords needed out fast.
Q: Do you need to meet the tenants?
A: Usually yes, just to see the property condition. But we keep it brief and professional.
The Bottom Line for Tired Huntsville Landlords
If you’re burned out being a landlord, you don’t have to keep suffering through years of tenant problems, repairs, and headaches just to eventually sell.
You can sell now, with tenants in place, as-is condition, and walk away in 2-3 weeks with cash in hand.
We’ve helped dozens of tired Huntsville landlords escape rental properties that stopped being profitable years ago. Call us at (256) 795-3014 or contact us online and let’s talk about your rental situation.