It sounds straightforward. You need to sell your rental property so you can insist your tenant move out, right? Not so fast.
First, under state law all residential landlords must have good cause. There is no longer an option to serve a “20-day” notice even if the tenant is month-to-month.
The lease expiring does not, itself, end a tenancy, either. Depending on the terms of the lease the landlord might have an option to end the tenancy with at least 60 days’ notice prior to the end of the lease term expiration. However, if the lease does not qualify under the statute and/or the landlord did not serve proper legal 60 days’ notice then the lease expiring does end the tenancy.
Under state law the landlord must serve a 90-day notice that the owners elect to sell. This option is only available to an owner of a “single-family residence.” This term is statutorily defined. The term encompasses more than a single-family house, but what types of properties are included is a bit nebulous.
In a recent Court of Appeals case the tenant argued that the state statutes require an owner to make diligent attempts to sell the rental property before the tenant vacates the property. The Court of Appeals rejected this argument and held that the landlord need only make attempts after the tenant vacates. Although the Court of Appeals ruled in favor of the landlord, the fact the matter went up on appeal shows how nuanced landlord-tenant law has become.
The state “elects to sell” law is based on the Seattle just cause elects sell provisions. The Court of Appeals has interpreted the Seattle elects to sell provisions to mean that a buyer cannot enforce a elect to sell notice served by the previous owners. Once there is a pending purchase and sale agreement selling cannot be the grounds for eviction under this case law. (Some landlord attorneys read other cases as providing a workaround, but that legal theory is untested at the appellate level.)
Local laws complicate matters further. The local code in unincorporated King County arguably requires the property to be listed and this information be included on their mandatory notice form. Some local laws extend the notice period to a longer period. The definition of “single-family residence” or similar operative statutory terms, already less than clearly defined under state law, is further clouded by local statutory definitions that differ from state law.
Even something as simple as selling your rental property is not so simple anymore. It is best to consult with an attorney about your rights and responsibilities.