Date: 27th Jan 2026
Selling a property is one thing. Selling a tenanted property? That’s a whole different ballgame. Perhaps your investment property goals have changed. Maybe you’re cashing up. Or it could be that you’re just ready to move on.
Whatever the reason, if you’re selling a rental property that’s still occupied, you’ll need to navigate the sales process with care and within the law.
Our guide offers practical advice, covering how to sell a house with tenants in New Zealand while protecting everyone’s rights (including your own).
Under New Zealand’s Residential Tenancies Act, landlords have the right to sell their properties at any time. But that doesn’t give them free rein to disrupt a tenant’s life. Tenants have the legal right to quiet enjoyment of their home, and that doesn’t stop just because the property is for sale.
If you're a landlord selling a tenanted property, your obligations don’t disappear. In fact, they get more complex. How much notice to give the tenant when selling the house, what kind of property access the tenants will allow, and what information you must disclose to the new landlord all fall under tenancy law.
And if you get it wrong, it could result in delays, disputes, and potentially, a failed sale.
What are tenants’ rights when a landlord sells the property? In short, the tenancy agreement type that is in place determines how to proceed.
When selling a house with renters in New Zealand, know your agreement. It shapes your timeline, obligations, and sale strategy.
No. Rules apply. Landlords selling a tenanted property are legally required to notify tenants in writing before it is sold, and the notice period depends on the circumstances.
If you're selling the property and want it empty at settlement, either for the new owner to take vacant possession or for marketing reasons like home staging, you'll need to issue a formal 90-day written notice. This is only valid if the new owner has made the property sale conditional on a vacant property, or if you plan to complete renovations before settlement.
A 42-day notice to end the tenancy can only be used in limited cases.
For example, if the new owner or a family member is moving in. However, it’s not a loophole to shortcut the sales process. Issuing a 42-day notice without valid legal grounds can have severe consequences.
Tenants can challenge invalid notices through the Tenancy Tribunal. If that happens, your sale could be delayed, or worse, fall over entirely.
A buyer may lose confidence if they discover the process hasn’t been handled correctly. You could also face financial consequences, including compensation for tenants when a landlord sells a property without following the correct legal process. In some cases, the Tribunal may issue a fine or order damages.
If you're unsure about the grounds for notice, seek legal advice before you serve it.
Quiet enjoyment means your tenants are entitled to live in their home without unnecessary disturbance. During the process, landlords must:
It’s not just a courtesy, it’s a legal requirement. Respect builds cooperation. Disrespect builds resistance.
Landlords can’t simply walk in with prospective buyers.
They need written notice for access, and the tenant has the right to set reasonable limits, such as:
Can a tenant refuse viewings? Tenants can’t unreasonably refuse access, but they can for auctions or open homes. Can a landlord take pictures of a house to sell? Tenants can also say no to interior photography if personal possessions are visible. Landlords must never take photos without tenant consent.
Some tenants may also request a rent reduction to allow more access or accommodate open homes. It’s not a legal requirement to grant it, but it’s often a goodwill gesture worth considering.
The new landlord has a right to complete transparency about any existing tenancy agreement. This includes:
Being open with potential buyers builds trust and accelerates the due diligence process. Hiding details could derail the deal later.
Can you sell a house with tenants? Yes. If you’re selling a tenanted property, the tenancy transfers to the new owner. This must be clearly stated in the Sale and Purchase Agreement, including:
Leaving these out creates ambiguity and can result in messy legal disputes post-settlement. A good real estate agent can provide a template or sample letter to tenants of intent to sell your property.
The best way to avoid problems? Be upfront. From the moment you decide to list your tenanted property, loop your tenant in. Keep them informed, discuss what you need from them, and advise how long the sale process might take.
Offer flexibility. Ask for preferences around viewing times. Put agreements in writing. Open communication is a must. The more proactive and respectful you are, the more likely your tenant will cooperate.
Not everyone is comfortable navigating tenancy law on their own. If you’re using a property manager, they can act as the buffer between you and the tenant. This will also make the marketing process feel more professional and less personal.
The bond doesn’t vanish with the old landlord. It stays lodged with Tenancy Services and transfers to the new owner as part of the property sale. Once the new owner takes possession of the property, they will need to complete a change of landlord form, update payment instructions, contact details, and the official address for service.
Depending on how long you’ve owned the rented property, the bright-line test may apply. If you’re selling a tenanted property within two years, you could be liable for capital gains tax. It’s essential to seek professional tax advice, especially if you're selling multiple properties or expecting a significant gain.
Selling a rental property with a tenant inside takes planning, communication, and a strong understanding of the rules that apply. With the right strategy in place, you’ll show that you respect your tenant’s rights, maintain buyer interest, and help ensure a smooth path to settlement.
The real estate agents at Tremains understand the nuances and complexities of selling a tenanted property. With over 50 years of experience helping Kiwis sell their homes, we can help guide you through each step with care and expertise.
Request a free property appraisal or talk to a Tremains sales consultant and discover how we can help you sell your rental property the right way.