Selling a rented house with tenant
Are you renting out your home, and would you prefer to sell it? Then there are a few things you need to take into account. A tenant enjoys rent protection. This means, among other things, that you cannot (just) terminate the rental agreement if you want to sell the house. In this article, you will read everything you need to know about selling a house with a tenant in it.
Can you sell a rented house with a tenant in it?
Yes, you can sell a rented house with the tenant in it. But beware: tenants enjoy rent protection. As a landlord, you are free to sell the property, but the existing rental agreement remains in effect. In the real estate world, this rule is also known as Sale does not break rent. If you sell your house, the new owner thus becomes the new landlord. From that moment on, the tenants transfer the rent to the new owner.
An exception to this rule is the case where you rent out your house under the Vacancy Act. You can use this law if you cannot sell your house and therefore are at risk of financial problems. Under the Vacancy Act, you are allowed to rent your house for five years under specific conditions. One of those conditions is that you can terminate the rental contract at any time when a buyer presents himself. After the sale, the tenant has no right to continue renting the house. The new owner of the house can therefore immediately live in it.
If you are planning to buy a house to rent out, read all the rules in our article about buying a house for rental.
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Is it difficult to sell a rented property?
Most people who are looking for a new home want to start living there in the short term. Therefore, it is generally more difficult to find a new owner for a property that is encumbered with rent. The selling price is often lower. However, there are certain cases in which people are interested in buying a rented house. For instance, it can be interesting to buy a rented property if you are looking for an affordable house to rent out yourself. Especially when the tenants behave well and pay the rent on time every month, the purchase can be a good move.
When can the new owner of a rented property start living in the house themselves?
As the new owner of a property that is encumbered with rent, you will usually have to respect the rental agreement. There are a few cases in which you as a landlord can still occupy the home yourself.
Rented property under the Vacancy Act
The first case is the situation where the property was rented out by the former owner under the Vacancy Act. You could already read more about that above. Under the Vacancy Act, tenant protection does not apply. As the new owner, you can therefore simply occupy the property yourself.
Valid reason for terminating rental agreement
In addition, the rental agreement can be terminated unilaterally by the landlord on a number of legal grounds. For example, you can terminate the rental agreement when:
- You urgently need the house yourself;
- There are (construction) plans;
- The tenant refuses to sign a new, reasonable lease;
- The tenant has rent arrears;
- The tenant causes serious nuisance.
If you have a good reason for unilateral termination, you have a notice period of three months. Send the tenant a written termination of the lease and state the reason for termination in it. Send the termination by registered mail and ask the tenant to agree in writing within six weeks to this termination. If the tenant disagrees with the termination, you as a landlord can go to court. The judge will then assess whether there is a valid termination.
For more information and advice on terminating a lease, we recommend contacting a legal advisor.
Waiting period for urgent personal use
Note: if you buy a house where tenants are already living, there is a waiting period for the first three years. This means that you cannot claim urgent personal use in the first three years after you have bought the property.
Can you sell a rented house after the owner's death?
The law states that the death of the landlord does not affect the validity of the lease. After death, the tenant protection remains in force. The heirs become the owners, and therefore the new landlords of the house. As an heir, you can sell the property, but you do sell the property with tenants in it. The buyer therefore becomes the new landlord. Of course, it also applies here that the lease can be terminated by the new owner (or heir) when there is a valid reason.
Tips for selling a house with tenants
Are you planning to sell your house while there are tenants living in it? Then it is a good idea to inform them of your plans as soon as possible. Inform them about the sales process and their rights, and let them know in what way you need their cooperation. Good communication is very important during the sales process. For example, make clear agreements about scheduling and organizing viewings and taking pictures. You can also include these agreements in the lease.
Also inform the tenants as soon as possible when the purchase is final and the buyer is known. This way they can get acquainted with the new landlord and know who to turn to. Vice versa, it naturally also applies that the buyer has an interest in getting in touch with the tenants as soon as possible, and that everything regarding the payment of the (first) rent term is properly arranged.
Would you like to know more about arranging the sale of your property? Then also read our articles about:
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