Selling a rented house with a tenant
Do you rent out your owner-occupied home, and would you prefer to sell it? Then, there are a few things you need to keep in mind. A tenant is entitled to rental protection. This means, among other things, that you cannot simply terminate the rental agreement if you wish to sell the property. In this article, you will find everything you need to know about selling a house with a tenant.
Can you sell a rented property with the tenant still in it?
Yes, you can sell a rented property with the tenant still in it. However, be aware that tenants are entitled to rental protection. You can sell the property as a landlord, but the existing rental agreement remains in force. In the real estate world, this rule is known as 'Purchase does not break rent'. If you sell your property, the new owner becomes the new landlord. From that moment on, the tenants will pay rent to the new owner.
An exception to this rule is if you rent out your property under the Vacant Property law. You can use this law if you cannot sell your house and are at risk of financial difficulties. Under the Vacant Property law, you can rent your property for five years under certain conditions. One of those conditions is that you can terminate the rental agreement anytime when a buyer comes forward. After the sale, the tenant has no right to continue renting the property. The new owner can immediately move into the house themselves.
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Is it difficult to sell a rented property?
Most people looking for a new home want to move in themselves in the short term. That’s why it is generally more difficult to find a new owner for a property encumbered by rental agreements. The sale price is also often lower. However, certain cases exist where people are interested in buying a rented house. For example, it can be appealing to purchase a rented property if you are looking for an affordable property to rent out yourself. The purchase can be a good move, especially when the tenants behave well and pay the rent on time every month.
When is the new owner of a rented property allowed to live in the house themselves?
As the new property owner, you are encumbered by a rental agreement, and in most cases, you will need to respect the rental contract. However, there are certain situations where you, as the landlord, can still move into the property yourself.
Rented property under the Vacant Property law
The first situation is when the former owner rented the property under the Vacant Property law. You can read more about this above. Under the Vacant Property law, rental protection does not apply. As the new owner, you can move into the property yourself.
Valid reasons for terminating a rental agreement
In addition, the rental agreement can be unilaterally terminated by the landlord based on several legal grounds. For example, you can terminate the rental agreement when:
- You urgently need the property for yourself
- There are (re)construction plans
- The tenant refuses to sign a new, reasonable rental agreement
- The tenant has rent arrears
- The tenant causes serious nuisance
There is a three-month notice period if you have a valid reason for unilateral termination. Send the tenant a written notice of termination of the rental agreement, stating the reason for termination. Send the notice by registered mail and ask the tenant to provide written consent to the termination within six weeks. If the tenant disagrees with the termination, you can take the matter to court as the landlord. The court will then assess whether the termination is legally valid.
We recommend contacting a legal advisor for more information and advice on terminating a rental agreement.
Waiting period for urgent personal use
Note: If you buy a house with tenants already living in it, there is a three-year waiting period. This means you cannot invoke urgent personal use during the first three years after purchasing the property.
Are you allowed to sell a rented house after the owner's death?
The law stipulates that the landlord's death does not affect the validity of the rental agreement. After the landlord's death, rental protection remains in effect. The heirs become the owners and, therefore, the new landlords of the house. You can sell the property as an heir, but you will sell it with the tenants still in place. In that case, the buyer becomes the new landlord. Of course, the new owner (or heir) can also terminate the rental agreement if there is a valid reason.
Tips for selling a house with tenants
Are you planning to sell your house while tenants live there? Then it’s a good idea to inform them of your plans as soon as possible. Explain the sales process and their rights, and let them know how you may need their cooperation. Good communication is very important during the sales process. For example, clear agreements should be made regarding scheduling and organizing viewings and taking photos. You can also include these agreements in the rental contract.
Also, inform the tenants as soon as possible when the sale is finalized and the buyer is known. This way, they can meet the new landlord and know who to contact. Conversely, the buyer also wants to contact the tenants as soon as possible, ensuring that everything regarding the payment of the (first) rent installment is properly arranged.
