Sell your rental property in Colorado Springs, CO with tenants in place: how leases and deposits transfer under Colorado law, HB24-1098 and what it means for delivering a vacant house, depreciation recapture and 1031 timing, and how a cash buyer closes without disturbing the tenant. Written offer within 24 hours of our visit.
Rental ownership in Colorado Springs has become more work than it was. A house in Security-Widefield or Cimarron Hills kept after a PCS, a duplex in the Southeast bought as an investment, a Westside bungalow inherited and rented out: each now faces insurance premiums that rose with the hail years, 2026 tax bills that rose with reassessment, Colorado's for-cause eviction law that limits non-renewals, and rents that have flattened while the roof and furnace have not. Owners who want out face a question a listing agent answers poorly: how do you sell a house that someone else lives in?
Colorado Springs Cash Buyers buys rental properties across Colorado Springs and El Paso County with tenants in place, on month-to-month terms or with a lease that runs another year. We buy as-is, we do not require the property to be delivered vacant, and we close in about a week after a clean title search. This page explains how a tenant-occupied sale works under Colorado law, what changes under HB24-1098, the tax points a landlord should weigh, and why a cash buyer is often the right buyer for your rental.
Selling with the tenant in place
In Colorado a sale does not end a lease. The buyer takes the property subject to the tenancy, the security deposit is transferred to the buyer at closing with written notice to the tenant, and rent is prorated on the settlement statement. The tenant is notified of the new owner and where to pay. For a month-to-month tenant the same applies; the new owner inherits the arrangement and Colorado's notice rules. We buy on these terms routinely, and the tenant often never meets us until after closing. There are no showings to coordinate and no requirement that you deliver the property empty.
What HB24-1098 changed
Since 2024, after a tenant has lived in a property for twelve months, a Colorado landlord may decline to renew only for listed reasons. Sale of the property is a permitted no-fault ground, but it requires 90 days' notice, and the landlord must actually be selling. Owner-occupied properties with three or fewer units and some other situations are exempt. For an owner who assumed they could simply not renew and sell vacant, this adds three months and paperwork. Selling to a buyer who takes the tenant removes the issue; the obligation becomes ours.
Tax points for landlords
A rental sale triggers depreciation recapture at up to 25 percent federally on the depreciation you took or could have taken, plus capital gains on the appreciation. A 1031 exchange defers both if you identify a replacement property within 45 days and close within 180, and a cash buyer with a firm closing date makes the timeline easier to control. If the house was once your primary residence, part of the gain may still qualify for the exclusion. Colorado taxes the gain as ordinary income at its flat rate, and out-of-state owners face the title company's withholding at closing. A tax professional should run your numbers before you decide.
Condition and deferred maintenance
Rentals carry the wear of tenants and the deferrals of landlords. A roof paid at actual cash value and never replaced, a furnace nursed through one more winter, carpet on its third tenant, a sewer line that backs up every spring. We price all of it into the offer and do the work after closing, often between tenancies. There is no inspection period in our contract, so a tenant's complaint discovered later does not reopen the price.
Why a cash buyer suits a rental sale
Retail buyers want vacant possession, a staged house and a lender who will finance it; a tenant-occupied property with deferred maintenance fails all three. Investors who buy through agents still inspect, still finance and still negotiate. We see the property once, deliver a written offer within 24 hours, take the tenant and the lease, and close on your date. We pay the customary closing costs and there is no commission.
Next step
Send the address, the lease terms, the rent and deposit, and whether the tenant is current. We arrange one visit with the tenant's cooperation, deliver a written offer, and close in about a week after a clean title search or on the date you choose. If you own several rentals, we can look at the portfolio together.
Selling to us vs. a traditional listing in Colorado Springs, CO
| Comparison | Traditional agent | For sale by owner | Colorado Springs Cash Buyers |
|---|---|---|---|
| Cash offer | Rarely | Rarely | Yes |
| Sell as-is | Repairs expected | Repairs expected | Yes |
| Time to a contract | roughly two months in Colorado Springs now | Often longer | 24 hours after the visit |
| Agent commission | About 6% | Buyer's agent usually paid | None |
| Closing costs | Paid by seller | Paid by seller | Customary costs paid by us |
| Showings | Yes | Yes | One visit |
| Financing fall-through | Possible | Possible | None, we fund it |
| Price cut after inspection | Common | Common | No inspection period |
| Closing date | Lender's schedule | Buyer's schedule | Yours |
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