Sell Your Hudson Valley Rental Property — Tenant-Occupied, As-Is, Fast

Selling a Rental Property in the Hudson Valley, NY — Tenant Rights, Tax Strategy, and Your Options

the Lower Hudson Valley's rental market is large — the Hudson Valley has historically been one of New York's most active rental markets, with renter-occupied households making up roughly 45–50% of the Hudson Valley's housing stock. Many of those rentals are owned by small landlords managing 1–5 properties who are tired, burned out, or ready to exit. If that's you, this guide covers exactly how to sell your Hudson Valley rental property — including what to do about tenants, how NY landlord-tenant law affects your sale, and how to handle the tax side of a rental property disposition.

New York Landlord-Tenant Law and Tenant Rights During a Sale

The landlord-tenant relationship in New York runs on RPAPL Article 7, with tenant protections under the 2019 HSTPA. The one rule that matters most at sale: a lease carries over to the buyer. If eight months remain on your tenant's lease, whoever buys the property inherits those terms — in this case us, stepping in as the new landlord bound by the existing lease.

Key tenant rights and sale process considerations in New York:

• Month-to-month tenants: Under NY law these usually take 28 days' written notice to end. A new owner could serve that the day after closing to get vacant possession — but we typically keep a cooperative tenant in place rather than clear the unit.
• Lease tenants: Can't be removed before the lease ends without cause, and the buyer has to honor it — we simply build that lease term into our offer and our renovation schedule.
• Security deposits: Must be transferred to the new owner at closing or returned directly to the tenant; New York rules (General Obligations Law § 7-108) govern deposit handling and returns. Provide documentation of deposits at closing.
• Notice of sale: No legal requirement to notify tenants of the sale before closing, but best practice (and your lease may require it) is to notify tenants of the ownership change after closing.

Selling With Problem Tenants — Your Options in New York

Problem tenants are often the primary reason landlords want to sell. Non-paying tenants, property damage, noise complaints, illegal activity — these situations are exhausting and expensive to manage. Here's how NY law handles each scenario and how selling to Simply Sold RE can help:

Non-Paying Tenants

New York eviction law (RPAPL Article 7) generally requires a 14-day written demand for nonpayment of rent (RPAPL 711), followed by filing a summary eviction proceeding in the local court (the Westchester County Courthouse is at westchestergov.com). After a hearing, if the court rules in your favor and the tenant doesn't vacate, you can request a warrant of eviction enforced by the Westchester County Sheriff. The full process typically takes several weeks to a few months, and longer if the tenant contests it.

We buy occupied rentals even when a non-paying tenant is mid-eviction — if needed, we pick the eviction up ourselves after closing, so you don't have to see it through before selling.

Damaged Properties

When tenant damage outruns the security deposit — which it frequently does — the landlord eats the repair bill. We buy rentals in any state, whatever the tenant left behind, and expect you to fix exactly nothing.

Tenants Who Won't Let You Show

NY law grants tenants "quiet enjoyment," meaning they can lawfully turn down showings or drag them out. Selling to us takes just one walk-through — sometimes only photos — so there are no repeat visits and no tenant scrambling to tidy up for a Saturday open house.

Tax Considerations When Selling a Hudson Valley Rental Property

A rental sale is taxed differently than selling your own home, and a handful of items are worth understanding first:

Depreciation Recapture

Own a residential rental more than a year and you've probably deducted depreciation — roughly 1/27.5 of the building's value annually. At sale the IRS recaptures it at a flat 25%, no matter your bracket. A standard sale can't dodge it, and selling to us doesn't change that.

Capital Gains on Appreciation

If your Hudson Valley rental has appreciated, you'll owe federal capital gains tax (0%, 15%, or 20% depending on your income bracket) on gains above your adjusted basis. New York taxes capital gains as ordinary income at its graduated rates (roughly 3.5%–7.65%), though it allows a 30% exclusion on most long-term gains, which softens the state hit.

1031 Exchange — Deferring Tax by Trading Up

IRS Section 1031 lets you defer both capital gains and depreciation recapture by rolling the proceeds into a like-kind property inside 180 days, with a qualified intermediary lined up within the first 45. A 1031 exchange out of a Hudson Valley rental into, say, a White Plains multi-family or a larger the Lower Hudson Valley investment property can preserve your full equity for reinvestment. Consult a 1031 exchange intermediary before closing — the exchange must be set up before you receive proceeds.

Installment Sale

If you don't need all the proceeds at once, an installment sale spreads the gain over multiple years, potentially reducing your total tax burden. This requires structuring the sale as a seller-financed transaction — not applicable to a standard all-cash purchase from Simply Sold RE, but worth discussing with your CPA before deciding on sale structure.

Why the Hudson Valley Landlords Sell to Simply Sold RE

We own rentals too, so the burnout is familiar — the 2 a.m. calls, the rent you have to chase, the surprise repairs. We purchase occupied rentals across the Lower Hudson Valley — we don't require you to evict anyone before closing. We buy in any condition. We close fast. And if you need time to deal with the tax planning first, we can accommodate a 30–60 day close to give you space to consult your CPA. Call (914) 000-0000 — a 10-minute conversation will tell you if a cash sale makes sense for your rental portfolio situation.

New York Eviction Process — Timelines the Hudson Valley Landlords Need to Know

Want to sell vacant despite a problem tenant? You'd have to finish the eviction first — unless you sell to us, since we take occupied properties as they are. For context, here's NY's eviction timeline:

Best case: roughly 5–8 weeks from first notice to possession. If the tenant contests the eviction in New York State Supreme Court, add additional weeks to a few months. An eviction in the Lower Hudson Valley is a $500–$2,000+ process before accounting for lost rent, property damage, and attorney fees if contested. This is often the primary reason landlords find selling more attractive than evicting and relisting.

1031 Exchange — Deferring Capital Gains on Your Hudson Valley Rental Sale

If you've owned your the Lower Hudson Valley rental property for years, you likely have significant capital gains plus depreciation recapture to account for. A 1031 exchange under IRC Section 1031 allows you to defer 100% of those taxes by reinvesting proceeds into a like-kind replacement property.

Critical rules for the Lower Hudson Valley landlords considering a 1031 exchange:

• Line up a Qualified Intermediary (QI) before closing — the proceeds can never pass through your hands; the QI holds them between the two deals.
• 45-day identification window — once your Hudson Valley property closes, you've got exactly 45 calendar days to name up to three replacement candidates in writing to the QI.
• 180-day close window — the replacement has to close within 180 days of the property you sold.
• New York generally follows the federal 1031 treatment — a valid federal like-kind exchange defers New York tax as well, but the rules are technical, so confirm with a New York CPA.
• Possible replacement property types: any investment real estate — another the Lower Hudson Valley rental, a commercial property, a multi-family elsewhere in NY, even a rental in another state.

Real Properties We've Purchased

These are actual homes we've bought across the Lower Hudson Valley — not stock photos or hypotheticals. Click any project to see the full story.

Multi-Unit · Tired Landlord Exit

Probate Lien Double — White Plains, NY

A tired landlord needed out of a two-unit with utility complications, a probate lien, and basement flooding. We bought it occupied and handled everything.

Read the full story →

Vacant Asset · Minimal Seller Involvement

Victorian Estate — Ossining, NY

A vacant property that had become a financial and legal liability. The owner needed to stop the drain without managing repairs or a traditional sale.

Read the full story →

View all projects →