Selling a Rental with a Lease in Southgate or Wyandotte

A lease does not block a sale in Southgate or Wyandotte. The buyer steps into the landlord role and the tenant stays under the existing terms. Blue Backs Property's buys the property as-is with the lease in place. No agent commissions (often 5% to 6% combined when you list). We pay the closing costs. Your proceeds are our offer minus your mortgage payoff, any liens, and the normal property-tax proration. Close on the date you choose, typically two to four weeks after a signed agreement, depending on title. In some cases we assign our purchase agreement to another buyer before closing; your price and terms stay the same.

What the lease means for the sale

The lease survives the transfer of title. The tenant keeps the same rent, same due date and same obligations. The new owner collects rent starting the day of closing. Security deposits transfer to the buyer at closing and the buyer assumes responsibility for returning them under Michigan law. Review the lease for any early-termination clause or sale provision; most standard Michigan leases have neither.

Documents to gather

• Signed lease and all addenda
• Current rent ledger showing payment history
• Security deposit amount and where it is held
• Any notices already served (non-payment, lease violations, non-renewal)
• Property insurance declaration page
• Current mortgage statement for the payoff figure

Tenant notice and showing access

Michigan law requires reasonable notice before entry. The lease may specify a notice period. Coordinate with the tenant for inspection and appraisal windows. A cash buyer typically needs one walk-through. If the tenant refuses access, document the refusal; the buyer may still proceed but the inspection contingency (if any) could be affected. Blue Backs Property's buys as-is, so the walk-through is for verification, not repair negotiation.

Practical steps

• Send written notice of the pending sale and the buyer's identity
• Provide the tenant with the buyer's contact for future rent payments
• Confirm the tenant's preferred payment method (mail, electronic, drop-off)
• Schedule the walk-through at a mutually agreeable time
• Keep records of all communications

Rent proration and security deposits at closing

Rent is prorated at closing. The seller keeps rent for days before closing; the buyer receives rent for the day of closing and after. The security deposit is credited to the buyer on the settlement statement. The buyer then holds the deposit under the same terms. If the deposit was commingled or not in a separate account, disclose that to the buyer before closing. Michigan requires deposits to be held in a regulated financial institution; non-compliance does not void the sale but creates liability for the new owner.

Closing statement items

• Prorated rent (daily rate × days each party owns)
• Security deposit credit to buyer
• Prorated property taxes (Wayne County bills in arrears)
• Mortgage payoff
• Any outstanding water or utility liens (Southgate and Wyandotte can place liens on the tax roll)
• Recording and transfer fees

Selling with a tenant vs. waiting for vacancy

A vacant unit may show better to retail buyers, but vacancy carries carrying costs: mortgage, taxes, insurance, utilities and maintenance. In ZIP 48195 (Southgate area), the median listing price was $229,400 in September 2026; the median listing had been on the market 35 days, 30 homes were listed for sale, and 15% of listings had a price cut (Realtor.com research data, September 2026). In ZIP 48192 (Wyandotte area), the median listing price was $221,250 in September 2026; the median listing had been on the market 39 days, 55 homes were listed for sale, and 21% of listings had a price cut (Realtor.com research data, September 2026). The average 30-year fixed mortgage rate in the U.S. was 7.40% for the week of October 15, 2026 (Freddie Mac via FRED, October 15, 2026). Carrying costs during the typical market period, plus any repair negotiations, often exceed the discount a cash buyer applies for an occupied property.

Trade-off checklist

• Monthly carrying cost (mortgage, tax, insurance, utilities)
• Time to vacate (notice period + move-out + turnover)
• Turnover cost (paint, cleaning, minor repairs)
• Risk of tenant damage during move-out
• Agent commission if listed
• Cash offer net: offer minus mortgage payoff, liens, tax proration

How the cash offer works on a leased property

Blue Backs Property's evaluates the property condition, the lease terms and the rent roll. The offer reflects the as-is condition with the tenant in place. No repair requests. No appraisal contingency. No financing contingency. We pay the closing costs. Close on the date you choose, typically two to four weeks after a signed agreement, depending on title. The tenant stays. The lease stays. You walk away with the net proceeds. Here's the next step: get your cash offer and see our number on the house. Compare the net with a traditional sale: Cash offer vs. listing: the real net on a house that needs work.

General information, not legal advice.