Real estate continues to be considered a safe investment. Rental properties are particularly attractive to investors because they generate rental income from day one and there is no need to worry about marketing. However, the rental situation does affect the sale price, and demand is lower than for properties that are not rented out. Owners should therefore pay attention to a number of things when selling.
Who buys a rented property?
There are property seekers who hope to be able to register their own use after purchase in order to move into the property themselves. As a rule, however, rented properties are 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.
Inform tenants early if you intend to sell – they have a 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 rental property on the same terms as agreed in the purchase agreement.
Can I terminate the tenant's lease if the property is sold?
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 wish to move into the property. Landlords can also offer tenants a lease termination agreement. 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 specialist who will search for a suitable property and negotiate with the tenant.
Selling a rented property can be complex, especially when legal and tax issues are involved. An experienced real estate agent can help you prepare all the necessary documents, identify potential buyers, and ensure that the sale process runs smoothly. Take advantage of a real estate agent's expertise and market knowledge to maximize your chances of a successful sale.
Selling a rented property – how to proceed
Laying a solid foundation: Review your rental agreements
Before you put your rental property up for sale, it is crucial to carefully review the rental agreements. Check the term of the rental agreements, the notice periods, and any special clauses. Potential buyers will scrutinize these factors closely, as they have a direct impact on their future income. Ensure that your rental agreements comply with the applicable legal provisions and provide potential buyers with all relevant information about the existing tenancies.
Renditepotenzial erkennen: Ermitteln Sie den Marktwert Ihrer vermieteten Immobilie
The selling price of your rented property should not be based solely on its real estate value, but also on its potential return for potential buyers. Consider factors such as current rental income, expected appreciation, and the condition of the property. An experienced real estate agent can help you make an informed market price assessment and determine the optimal selling price for your rented property.
Den richtigen Zeitpunkt wählen: Marktanalyse und Nachfrage beachten
Choosing the right time to sell your rental property can be crucial. Keep an eye on the real estate market and analyze the demand for comparable properties in your area. If demand is high and prices are rising, it could be the ideal time to sell your property and take advantage of attractive offers.
Mit Hilfe eines Profis das Maximum herausholen
The exposé is an important step in the sale of a rented property. This is because investors expect it to contain a calculation of the return on investment. This calculation is based, among other things, 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. Specialists therefore recommend that sellers of rented properties seek advice from local real estate professionals. They also have the necessary experience to conduct sales negotiations confidently and effectively for both sides.
Do you want to sell your rented property at a profit?
With almost 30 years of experience in the real estate market, you benefit from our expertise in selling rented properties. We are at your side and guide you through the entire process so that you can get the most out of your investment.
Arrange a no-obligation consultation now and discover how easy it can be to sell your rented property.