Can you sell a house with tenants in Chicago?
Yes. You can sell a rental with tenants living in it, and the buyer becomes their landlord under the same lease. You have three paths: sell with the tenants in place, wait for the lease to end and give proper notice, or agree with the tenant in writing on a move-out date.
Does the lease end when the house sells?
Usually not. The lease stays the same, and only the landlord changes. The buyer can collect rent and enforce the lease just as you could. The exception is a lease that says it can end on a sale, so read every lease before you plan around a move-out.
What happens to the security deposits?
They go to the buyer at closing, with any interest owed. Under Illinois law the buyer becomes responsible for them, but you stay responsible too, so the tenant can come after either of you. In most Chicago rentals the buyer must also tell each tenant in writing within 14 days that it now holds the deposit, and a mistake can cost twice the deposit plus interest. Those Chicago deposit rules don't apply to an owner-occupied building with six or fewer units.
How much notice does a Chicago tenant get to move out?
It depends on how long the tenant has lived there.
- Less than 6 months: 30 days.
- 6 months to 3 years: 60 days.
- More than 3 years: 120 days.
This applies to every rental in Chicago, including owner-occupied two-flats, whether you are ending a month-to-month tenancy or not renewing a lease. Even when a lease has an end date, anywhere in Cook County you still have to give written notice that you won't renew. In suburban Cook County the notice is generally 60 days, and some towns, like Evanston and Oak Park, set their own.
Can you show the house while tenants live there?
Yes, with at least two days' notice. A tenant can't unreasonably refuse a showing to a buyer, but access can't be used to harass them. A sale to one cash buyer usually needs only one walkthrough.
Can you pay a tenant to move out early?
Yes, if the tenant agrees and it is in writing. This is often called cash for keys, and the tenant can say no. A signed move-out agreement should cover:
- the move-out date and how the keys come back,
- what happens to anything left behind,
- how and when the security deposit is returned, and
- how much you pay and when.
If the tenant doesn't follow the signed agreement, you can serve a written eviction notice. In the two Chicago districts below, don't ask tenants to give up their right to buy during the notice period, and get advice before any payment tied to it. The city says that can break the rules.
What if the tenant stops paying rent?
You need a court case. Changing the locks or shutting off utilities is illegal. In Chicago you start with a written 5-day notice, and in most rentals a tenant who pays all back rent and your court filing fees before the judge rules can stay, once. Only the sheriff can carry out an eviction. An illegal lockout in Chicago costs $200 to $500 for each day it lasts.
What if the tenant uses a Housing Choice Voucher?
The housing authority has to approve the switch to the new owner, and the buyer has to agree to the voucher contract. During the first lease term, a sale alone is not a reason to end the tenancy. After the first lease term, it can be. Like any tenant, a voucher tenant can only be removed through court.
Do tenants get a right to buy the building first?
In two parts of Chicago, yes. The 606 District on the Northwest Side covers parts of Avondale, Hermosa, Humboldt Park, Logan Square and West Town, and has been enforced since March 1, 2025. A second district around Jackson Park on the South Side started April 6, 2026. The 606 rules cover a single rented house or condo too, and owner-occupied buildings, and Jackson Park's are similar. Check the city's maps before you sell. In the 606 District:
- Notice comes first. You must notify the tenants and the city at least 30 days before offering the building for sale (60 days for 5 or more units). Offering it privately or directly to a cash buyer counts.
- Tenants can match your buyer. After you sign with a buyer, the tenants get a chance to match the deal, and you can't close until they pass or their time runs out. In a one- or two-unit building that can take until about day 75.
- Tenants who don't buy can stay. The new owner has to let them stay at least 6 months after the sale or until their lease ends, whichever is longer.
Some transfers are exempt, such as sales to family members and foreclosures.
What papers does a buyer need when the house has tenants?
The leases, a list of rents, and the deposit records. Plan to hand over:
- Every lease, with renewals and side agreements.
- A rent list showing each unit, its rent and its lease end date.
- The deposit held for each tenant and any interest owed.
- Any notices you have served, and any open eviction case.
How does a cash sale with tenants in place work?
Like any cash sale, plus the leases and deposits. Tell us the units, rents and lease dates, and if the building is a fit, Fair Home Cash may make a written cash offer with the tenants in place, so you don't have to empty the building. A title company closes the sale and credits the deposits to us, and we send the tenants the transfer notice. Closing often takes about 7 to 28 days once title is clear (an estimate, not a promise), longer in the two right-to-buy districts. A cash offer is usually lower than what a vacant, fixed-up building might list for, so compare both.
The honest math on selling with tenants
An example, not a quote: a two-flat with both units rented sells for $300,000. The mortgage payoff is $170,000, the tenants' deposits of $3,000 are credited to the buyer, the seller's share of this year's property taxes is credited to the buyer at about $4,000, and Fair Home Cash pays the seller's closing costs and transfer tax. The seller walks away with about $123,000.
The deposits were the tenants' money all along, so they pass to whoever owns the building. The real trade is time: emptying the building first can take up to 120 days of notice for a long-term tenant, plus months of mortgage, taxes and repairs before a listing even starts.
This page is general information, not legal advice. Talk to an Illinois real estate attorney before you serve a notice or sign a contract on a specific lease. The longer guide on selling a house with tenants covers more situations, and the short answer is the one-minute version. If the mortgage is behind, see the Illinois foreclosure guide. Tell us the units and lease dates in the offer form above, so the offer fits the tenancy you actually have.
Sources: 735 ILCS 5/9-215 (the buyer steps into the lease); 765 ILCS 710/1.1 and 765 ILCS 715/1 (deposits); 735 ILCS 5/9-207 and 9-209 (notice outside Chicago, rent demands); Chicago Residential Landlord and Tenant Ordinance and the City's 2023 summary (deposits, the 30/60/120-day notice, showings, lockouts, exclusions); Chicago Municipal Code chapters 5-10 and 5-11 and the Department of Housing rules and notice forms (the right-to-buy districts); HUD form 52641 (voucher contracts); Illinois Legal Aid Online (leases after a sale, Cook County notice, move-out agreements).
