Selling a home with tenants in San Mateo

Updated September 17, 2026. General information for sellers in the city of San Mateo, California. It is not legal or tax advice.

You can sell a home while a tenant lives in it. But the tenant has rights under California law and San Mateo's own rules, and those rights shape how you show the home, when a buyer can move in, and what it costs. Plan for them before you set a listing date.

A sale does not end the lease by itself

In general, a buyer takes the home subject to the existing lease. That gives you three broad choices:

Sell with the tenant in place. This often suits buyers who want a rental. The tenant stays, and the lease and deposit move to the new owner.
Wait until the tenancy ends lawfully. That may mean the end of a lease term, but California's just-cause rules may still apply.
Reach a voluntary agreement. Some owners and tenants agree on a move-out date in exchange for a payment. Put any agreement in writing, and have an attorney review it.

Notice before showings

California Civil Code section 1954 lets a landlord enter a rental to show it to prospective or actual buyers. The rules are specific:

Entry must be during normal business hours, unless the tenant agrees to another time when you arrive.
Written notice must give the date, the approximate time and the purpose of the entry. Twenty-four hours is presumed to be reasonable notice. If the notice is mailed, six days before the entry is presumed reasonable.
For showings to buyers, notice can be given orally, in person or by phone. That only works if you told the tenant in writing, within the past 120 days, that the home is for sale and that you may contact them orally about showings. The 24-hour presumption still applies.

Showings go better when the tenant is on your side. Agree on a showing schedule, keep visits short, and think about what you can offer in return for the disruption.

California's just-cause rules

The Tenant Protection Act, found in Civil Code section 1946.2, requires a stated just cause to end many tenancies once tenants have lived in the home for 12 months. The cause can be the tenant's fault, such as not paying rent. It can also be a no-fault cause, such as the owner or a close family member moving in, or taking the unit off the rental market. For a no-fault termination, state law requires the owner to help the tenant relocate, either with a payment or by waiving the final month's rent.

Some single-family homes and condos are exempt, but only when both conditions are met. First, the owner cannot be a real estate investment trust, a corporation, or an LLC with a corporate member. Second, the tenant must have received the exact written notice set out in the statute. If that notice was never given, assume the protections apply.

San Mateo's Residential Tenant Protection Program

On December 1, 2025, the San Mateo City Council adopted the Residential Tenant Protection Program, now Chapter 10.100 of the Municipal Code. It covers no-fault just-cause evictions, relocation assistance and notice of tenant rights. It extends the protections of state law to tenants who have lived in the home for 11 months, not 12. Owners also had to give existing tenants a written notice of their rights by February 1, 2026. Read the chapter, or ask the City's housing staff, before sending any notice to end a tenancy. A notice that does not follow these rules can be void.

Security deposits and records

When you sell with a tenant in place, the buyer will want copies of the lease, any amendments, the rent history and the deposit amount. Gather them early. At closing, the deposit is usually transferred to the new owner or credited to the buyer. Your escrow officer and attorney can confirm how to do that and how to notify the tenant.

Preparing the home with a tenant living there

You may not be able to stage the home or make major repairs while it is occupied. Good photos taken with the tenant's agreement, a clear description of the lease terms, and honest disclosure of the home's condition help buyers decide. If the tenant plans to leave, a short gap between move-out and listing gives you time to clean and fix small things.

Questions to settle before listing

Is the tenancy covered by state just-cause rules, the city program, or both?
Will you sell to a buyer who keeps the tenant, or wait for a lawful move-out?
Have you given the written notice that allows phone notice for showings?
Do you have the lease, the rent records and the deposit amount ready?

For anything involving ending a tenancy, talk to a landlord-tenant attorney first. The County of San Mateo and the City both list tenant and landlord resources.

Thinking about selling? Ask for a free home value estimate. A licensed San Mateo agent replies by email, and there is no obligation.

Sources

Laws and amounts change. Check the sources above, and talk to an attorney or tax advisor about your own situation.