
Selling a rented property: what you need to bear in mind
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Buying does not break renting
Owners cannot simply terminate their tenants' leases in order to sell the property vacant. The buyer of the property must take over the existing lease on the same terms as before. This is because the lease is protected. However, after the purchase, the buyer can claim personal use if they or a close family member wants to move into the property. Landlords can propose a lease termination agreement to tenants. As a rule, tenants only accept this if they receive compensation and perhaps the prospect of a new apartment. It is advisable to hire a local, reputable real estate agent who will search for a suitable property and negotiate with the tenant.
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Inform tenants early – take into account the tenant's right of first refusal
To avoid disputes that could adversely affect the sale, owners should inform the tenant of the sale at an early stage. After all, viewing appointments must also be arranged with them. Although owners have a right to view the property, visits must be announced at least 24 hours in advance. It is always advisable to give the tenant a little more time to present the property in a good condition.
Tenants have a right of first refusal if their apartment is to be converted into a condominium and sold. Owners are obliged to inform their tenants of the contents of the contract at the latest when a purchase agreement is drawn up. The tenant then has two months to exercise their right of first refusal. They can then purchase the property on the same terms as agreed in the purchase agreement.
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Target group and marketing
There are property seekers who hope to be able to register their own use after purchase in order to move into the property themselves. However, rented properties are generally of interest to capital investors. They do not want to live in the property, but rather generate a return on their investment. Some investors focus on vacant properties because they can modernize them and charge higher rents when they are re-let. Other investors, on the other hand, see the advantage of rented properties in that they do not have to look for tenants and have immediate rental income.
These conditions place different demands on marketing. The property listing is significantly more important. This is because investors expect it to include a calculation of the return. Among other things, this calculation depends on the amount of rental income in relation to the purchase price, any upcoming renovation and modernization measures, and the amount of rent in relation to the local rent index. Experts therefore recommend that sellers of rented properties seek advice from local real estate professionals. They also have the necessary experience to conduct the sales negotiations with confidence.
Are you looking for support in the legally compliant sale of your rented property? Contact us! We will be happy to advise you.
Notes
For reasons of readability, the generic masculine form is used in this text. Female and other gender identities are expressly included where necessary for the meaning of the text.
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.
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