Owning rental property in Katy, TX can be profitable — but sometimes circumstances change. Maybe you’re dealing with difficult tenants, late rent payments, costly repairs, rising insurance premiums, foreclosure pressure, or you simply want to cash out your equity.
If you’re wondering:
“Can I sell my house in Katy, TX if tenants are still living there?”
The short answer is yes — but how you do it depends entirely on Texas landlord-tenant law, your lease agreement, and your timeline.
Selling a tenant-occupied home can either be straightforward or extremely stressful. The difference usually comes down to understanding your legal rights and choosing the right selling strategy.
In this complete guide, you’ll learn:
- Whether you can sell a rental property with tenants in place
- When eviction is allowed (and when it’s illegal)
- Step-by-step Texas eviction procedures
- How long eviction takes in Katy
- How to sell fast without going through court
- What to do if tenants refuse to cooperate
- The risks most landlords don’t think about
If you want to avoid costly mistakes and delays, read carefully.
Can You Sell a House With Tenants in Katy, TX?
Yes. In Texas, landlords are legally allowed to sell rental property even if tenants are currently occupying the home.
However, whether you can remove the tenant depends on:
- The type of lease agreement
- Whether rent is current
- Whether the tenant has violated the lease
- How much time remains on the lease
Key Rule in Texas
If a tenant has a valid fixed-term lease, the new buyer must honor it. The lease transfers with the property.
If the tenant is month-to-month, you can usually terminate the tenancy with proper notice.
Understanding Lease Types in Texas
Before making any decisions, review the lease agreement. This determines your legal options.
1. Month-to-Month Lease
- No long-term commitment
- Can be terminated with 30 days’ written notice
- Easier to sell vacant
2. Fixed-Term Lease (6–12+ months)
- Legally binding until expiration
- Cannot evict simply because you want to sell
- Buyer must assume lease
3. No Written Lease
- Usually treated as month-to-month
- Still requires proper written notice
Quick Reference Table
| Lease Type | Can You Sell? | Can You Evict to Sell? | Notice Required |
|---|---|---|---|
| Month-to-month | Yes | Yes | 30 days |
| Fixed-term | Yes | Usually No | Must wait unless violation |
| No lease | Yes | Yes | 30 days |
| Nonpayment situation | Yes | Yes | 3-day notice |
Can You Evict a Tenant Just Because You Want to Sell?
Not always.
In Texas, eviction must be based on a legal reason, such as:
- Nonpayment of rent
- Lease violation
- Expired lease
- Criminal activity
You cannot evict a tenant under a fixed-term lease simply because you plan to sell — unless the lease specifically allows early termination due to sale.
If you attempt an improper eviction, you could face:
- Court dismissal
- Delays of several weeks
- Legal fees
- Potential tenant claims
Step-by-Step: How to Evict a Tenant Legally in Katy, TX
If eviction is necessary, follow Texas Property Code strictly.
Step 1: Issue a Proper Notice to Vacate
Texas law requires written notice before filing eviction.
Standard Notice Periods
| Situation | Notice Required |
|---|---|
| Nonpayment of rent | 3 days (unless lease says otherwise) |
| Month-to-month termination | 30 days |
| Lease violation | Usually 3 days |
The notice must be:
- Written
- Delivered in person, by mail, or posted inside the front door
Failure to follow delivery rules can invalidate the case. For further details on the eviction process in Texas, refer to the Texas State Law Library’s Guide to Eviction.
Step 2: File an Eviction Lawsuit
If the tenant does not leave:
- File an eviction petition at the local Justice of the Peace Court (for Katy, typically Fort Bend or Harris County depending on location).
- Pay filing fees.
- Attend the court hearing.
Hearing usually occurs within 10–21 days.
Step 3: Court Judgment
If the judge rules in your favor:
- Tenant typically has 5 days to appeal.
- If no appeal is filed, you can request a writ of possession.
Step 4: Writ of Possession
A constable will post a 24-hour notice before physically removing occupants.
Total eviction timeline in Texas: 3–6 weeks, depending on court backlog.
What If the Tenant Is Paying Rent on Time?
If rent is current and the lease is valid, you have three main options:
Option 1: Sell With Tenant in Place
This is often the simplest route.
Advantages
- No eviction costs
- No court delays
- Rental income continues
- Attracts investor buyers
Disadvantages
- Smaller buyer pool
- Owner-occupants may not qualify
- Showing coordination required
Investors often prefer properties with stable tenants.
Option 2: Offer Cash for Keys
Instead of formal eviction, offer money in exchange for voluntary move-out.
What Is Cash for Keys?
A written agreement where:
- Tenant agrees to vacate by a certain date
- Property is left clean and undamaged
- You provide agreed payment upon move-out
Typical Cash for Keys Amounts in Katy, TX
| Property Type | Typical Offer Range |
|---|---|
| Smaller rental homes | $500–$1,500 |
| Mid-range homes | $1,500–$3,000 |
| Higher-end rentals | $3,000+ |
Often cheaper and faster than eviction.
Option 3: Wait Until Lease Expires
If the lease ends soon, waiting may be simplest.
Pros:
- No legal conflict
- Full buyer pool once vacant
Cons:
- Delayed sale
- Continued landlord responsibility
Selling a Tenant-Occupied Property: Your 3 Main Selling Methods
Method 1: Traditional MLS Listing
What to Expect
- Agent commissions (5–6%)
- Showings coordinated with tenant
- Potential repair requests
- 60–90 day average timeline
Tenants must be given reasonable notice before showings (typically 24 hours).
Method 2: Sell to a Real Estate Investor
Investor buyers:
- Purchase tenant-occupied homes
- Often accept as-is condition
- Close in 2–4 weeks
- May assume lease
This is common for rental property sales. For a comprehensive guide on how real estate investors evaluate and purchase properties, see BiggerPockets’ Guide to Real Estate Investors.
Method 3: Direct Cash Sale
This option is often fastest.
Benefits
- No repairs
- No showings
- No commissions
- Close in 7–14 days
- Can sell with tenants inside
Timeline Comparison
| Selling Method | Avg. Time to Close | Repairs Required | Showings Needed |
|---|---|---|---|
| MLS Listing | 60–90 days | Usually | Yes |
| Investor Sale | 14–30 days | Rarely | Sometimes |
| Direct Cash Sale | 7–14 days | No | No |
Special Situations That Complicate Sales
1. Tenant Not Paying Rent
You must complete eviction before most retail buyers will proceed.
However, some investors purchase non-paying tenant situations.
2. Property Damage by Tenant
If damage is extensive:
- You may need repairs for traditional buyers
- Investors may accept as-is condition
Document all damages thoroughly.
3. Selling During Foreclosure
Time becomes critical.
Selling quickly — even with tenants inside — may prevent foreclosure from completing.
4. Squatters (No Lease, No Rent)
These require formal eviction as well.
Self-help eviction (changing locks, shutting utilities) is illegal in Texas.
Legal Mistakes to Avoid
Even experienced landlords make errors during eviction.
Common Errors
- Improper notice wording
- Incorrect delivery method
- Filing too early
- Accepting partial rent (which may reset notice period)
- Lockouts without court order
Mistakes can restart the entire process.
What Happens to the Security Deposit When Selling?
In Texas:
- Security deposits transfer to the new owner.
- The buyer becomes responsible for returning it at lease termination.
- Proper documentation during closing is critical.
For a detailed, authoritative explanation of how security deposits work in Texas — including when they can be withheld and how they must be returned — see TexasLawHelp.org’s Guide to Security Deposits.
Tax Considerations When Selling a Rental Property
Selling a rental property may trigger:
- Capital gains tax
- Depreciation recapture
- Possible 1031 exchange opportunity
Consult a tax professional for guidance. You can also explore tax tips for sellers on IRS’s Guide to Capital Gains.
How to Prepare a Tenant-Occupied House for Sale
Even if selling occupied, you can:
- Communicate openly with tenants
- Provide written showing schedule
- Offer small incentives for cleanliness
- Handle minor repairs
Cooperative tenants can dramatically improve sale speed.
Tips to Sell Faster With Tenants in Place
- Be transparent about your intentions.
- Provide proper legal notice.
- Consider offering relocation assistance.
- Price realistically.
- Choose the right buyer type for your situation.
Frequently Asked Questions
Q. How much notice do I have to give a tenant in Katy, TX?
In Katy, TX, landlords must give at least 30 days’ written notice to terminate a month-to-month lease. For nonpayment of rent, Texas law generally requires a 3-day notice to vacate unless the lease states otherwise.
Q. Can I evict a tenant just because I want to sell my house in Texas?
No, you cannot evict a tenant under a fixed-term lease simply because you want to sell. In Texas, the buyer must honor the lease unless the tenant violates its terms or agrees to leave voluntarily.
Q. Can I sell a house in Katy with tenants still living there?
Yes, you can legally sell a tenant-occupied property in Katy, TX. The new owner typically assumes the existing lease or purchases the property with the tenant in place.
Q. How long does eviction take in Katy, TX?
Eviction in Katy, TX usually takes 3 to 6 weeks from notice to move-out, depending on court schedules and whether the tenant contests the case. The process includes notice, court filing, and possibly a writ of possession.
Q. What happens to the security deposit when selling a rental property in Texas?
In Texas, the security deposit transfers to the new owner at closing. The buyer becomes responsible for returning the deposit when the tenant moves out.
Q. Can I sell a rental property with a tenant who is not paying rent?
Yes, but most traditional buyers will require the eviction process to be completed first. Some investors may purchase properties with non-paying tenants, often at an adjusted price.
Deciding the Best Strategy for Your Situation
Ask yourself:
- Is the lease month-to-month?
- Is the tenant current on rent?
- How quickly do I need to sell?
- Am I willing to go through court?
- Do I want to avoid repairs and showings?
Your answers will determine whether eviction, cash-for-keys, waiting, or selling occupied makes the most sense.
Final Thoughts: Selling Smart in Katy, TX
Selling a house with tenants in Katy, TX can feel complicated — but it doesn’t have to be. Whether you’re dealing with a month-to-month lease, a fixed-term agreement, or a difficult tenant situation, the key is understanding Texas law and choosing the strategy that fits your timeline and financial goals.
If you want top dollar and have time to wait, coordinating a vacancy before listing may expand your buyer pool. But if speed, simplicity, and avoiding court proceedings are more important, selling the property as-is — even with tenants in place — may be the smarter move.
Every situation is different. Lease terms, tenant cooperation, property condition, and urgency all play a role in determining the best path forward.
If you need guidance or want to explore fast selling options without the stress of repairs, showings, or legal complications, Houston Area Home Cash Buyers can help you understand your options and move forward with confidence.
The most important step is taking action early — because the longer you wait, the fewer options you may have.