Selling a rented property is a delicate balancing act. The seller wants to get a fair market price. The buyer is either looking for a solid investment or considering long-term personal use. And the tenant is understandably concerned that their home will suddenly become uncertain.
That’s exactly why selling a rented apartment requires significantly more tact than selling a vacant property. Ignoring the tenant risks blocked showings, mistrust, and delays. Providing buyers with inadequate information creates uncertainty and opens the door to future conflicts.
In our experience, one thing is consistently clear: a successful sale is most likely to happen when all parties involved know where they stand from the very beginning.
First things first: Get the tenant on board
When selling a rented apartment , the principle “a sale does not terminate a lease” applies . This means that if a rented property is sold, the buyer assumes the existing lease. The lease therefore generally continues; only the landlord changes. This principle is governed by Section 566 of the German Civil Code (BGB).
For tenants, this information is often crucial. Many are initially afraid that they’ll have to move out immediately after the sale. This concern can lead tenants to decline showings, keep their distance, or perceive any communication as a threat.
Additionally, in certain cases, the tenant’s statutory right of first refusal under Section 577 of the German Civil Code (BGB) may become relevant. This primarily applies to situations in which a rental apartment was converted into a condominium during the tenancy and is subsequently being sold for the first time. The right of first refusal is exercised by means of a written declaration to the seller; in this context, we also provide honest information about the hurdles involved in a potential termination for personal use and applicable waiting periods, should a prospective buyer wish to move in themselves.
In the case of a rental property, the tenant is the most important local partner
Before putting the property on the market, owners should therefore check:
- Is there a current lease agreement?
- Who actually lives in the apartment?
- How long has the tenancy been in effect?
- Was the apartment converted to condominium ownership during the tenancy?
- Could the tenant have a right of first refusal?
- What is the current rent?
- Are there any rent arrears or disputes?
- What is the relationship with the tenant like?
- Have there been any renovations, rent increases, or special agreements?
In one of our sales cases, a long-term tenant initially refused any contact. The owner wanted to sell the apartment, but the tenant was concerned that a new owner might evict him immediately. Instead of scheduling viewings right away, we deliberately slowed down the process.
We sat down with the tenant, calmly explained the situation, and put in writing that we were specifically looking for investors who value an existing, reliable tenancy. This helped the tenant understand that he wasn’t the problem with the sale, but rather an important part of the property.
This transparency completely changed the atmosphere. He allowed viewings, provided documents, and even made sure the apartment looked neat and well-prepared for the appointments.
Viewing Etiquette: Respect the Tenant’s Privacy
A rented apartment is not an empty showroom. It is someone’s home. That is why viewings must be carefully coordinated and announced well in advance. Landlords and real estate agents may not enter a rented apartment without permission. While a sale may be a legitimate reason for viewings, it is still necessary to strike a fair balance between the interest in selling the property and the tenant’s privacy.
In practice, this means that viewings should be well-prepared, scheduled in batches, and conducted respectfully. The goal is not to rush as many prospective buyers as possible through the apartment. The goal is to select the right prospective buyers.
Before viewings, the following should be clarified:
- When is a convenient time for the tenant?
- How many appointments are reasonable?
- How far in advance will the appointment be announced?
- Who will be present during the viewing?
- Which rooms may be photographed?
- Will personal belongings be protected?
- How are prospective buyers pre-screened?
- What information do buyers receive in advance?
- How is the tenant’s privacy protected?
During one sale, we received over 30 inquiries about a rented apartment. The owner wanted to invite as many prospective buyers as possible to “test the market.” That would have overwhelmed the tenant and likely jeopardized our cooperation.
We therefore began by applying strict pre-screening criteria. Prospective buyers received all relevant information in advance: rental details, maintenance fees, floor plan, location, condition, yield figures, and information about the existing lease. Those who remained seriously interested afterward and appeared financially qualified were shortlisted.
In the end, we showed the apartment to only three qualified prospective buyers in a single afternoon. The appointment was scheduled well in advance, conducted on time, and kept brief. After the viewings were completed, the tenant received a small token of appreciation as a thank-you.
That may sound like a small gesture. In practice, however, it is precisely this attitude that often makes all the difference. Respecting the tenant’s privacy significantly increases the chances of a smooth leasing process.
Securing Returns Through Respect
Successfully selling a rental apartment requires expertise, patience, and diplomatic skill. Owners need a realistic view of market value, rent, the target audience, and the legal framework. Buyers need complete information. Tenants need respect and security.
In our experience, three things are particularly important:
- early and clear communication with the tenant
- honest target audience analysis
- professional preparation of the lease agreement, return on investment, and sales documents
Those who bypass the tenant risk resistance. Those who take the tenant seriously often gain a reliable partner in the sales process.
Are you looking to sell your rented condominium or apartment building and seeking discreet, professional guidance? In a confidential consultation, we’ll work together to determine the right target audience, identify the legal considerations that need to be addressed, and figure out how to organize the sale in a way that’s respectful to the tenants.
