Are you a landlord looking to sell your property? Good news: the law allows you to sell a rented house or apartment even while the lease is still in effect. This process is governed by specific rules depending on whether you choose to sell the property with the tenant in place or to have it vacated before the transaction. This article explains the regulations, the impact on price, and the steps to follow to secure your sale. To find out the precise value of your rental property in the current market, generate your online property valuation and an Optimhome real estate advisor will provide you with a detailed valuation report.
Can You Sell a Rented Property While the Lease Is Still Running?
Yes, the law allows any landlord to sell an occupied property at any time, whether the lease is still running or approaching its end date. You are not required to wait until the rental agreement ends before putting your property on the market.
The regulations differ depending on the type of rental. For an unfurnished rental, the lease is governed by the law of July 6, 1989 and generally lasts 3 years, or 6 years if the landlord is a legal entity. In the case of a furnished rental, the lease lasts one year and is renewable, which offers more flexibility when managing the sale.
In practical terms, the sale can begin without waiting for the current lease to expire. You have two options: sell the property with the tenant in place and transfer the lease to the buyer, or give notice to the tenant so the property is vacant before the signing of the final deed.
Please note that the mobility lease, intended for short-term rentals from 1 to 10 months, is an exception. This more flexible type of rental agreement does not grant the tenant a right of first refusal and makes it easier to recover the property.
What Are the Options: Selling with the Tenant in Place or Selling Vacant?
Selling with the Lease Transferred to the New Buyer
When you sell an occupied property, the current lease is automatically transferred to the new owner. The buyer becomes the new landlord and takes over all the rights and obligations of the rental contract: rent amount, remaining lease term, and security deposit. This transfer takes place without any change to the original terms.
This option allows you to sell without waiting for the lease to end. You continue to collect rent until the signing of the final deed before the notary, which secures your income throughout the transaction period. This formula mainly appeals to investors looking for a property that is already producing income, with a tenant in place and immediate rental cash flow.
Giving Notice to Sell and Vacating the Property
If you prefer to sell your property vacant, you must serve notice to sell on your tenant. This is done by registered letter with acknowledgment of receipt or by bailiff’s notice. The notice period is 6 months before the end of the lease for an unfurnished rental and 3 months for a furnished property.
The notice must state the proposed sale price and the terms of the transaction, because it also serves as a sale offer to the tenant as part of their right of first refusal. If you choose this route, you may consider a long sale: the period between signing the preliminary agreement and the final deed is then extended to give the tenant time to find a new home.
Criterion | Sale with tenant in place | Vacant sale |
|---|---|---|
Timeline | Immediate, no waiting period | Minimum notice of 3 to 6 months |
Buyer profile | Investors | First-time buyers, families |
Impact on price | Discount of 5 to 20% | Market price without discount |
Procedure | Automatic lease transfer | Notice to sell required |
What Rights Does the Tenant Have in the Event of a Sale?
The Tenant’s Right of First Refusal
When you decide to sell your property if it is rented unfurnished, the law grants your tenant a right of first refusal. This means they have priority to buy the property they occupy. In practice, you must send them a sale offer by registered letter with acknowledgment of receipt or by bailiff’s notice. This offer must state the price, sale terms, floor area, and the legal provisions relating to this right.
Your tenant then has 2 months from receipt of the offer to accept or refuse. If there is no response within this notice period, the tenant is considered to have waived their right. If you lower the sale price after their refusal, you must submit a new offer to them, because they retain priority to purchase.
Notice Period and Rules for a Furnished Property
The right of first refusal does not apply to furnished rentals. However, the notice periods remain specific: 3 months for a furnished property compared with 6 months for an unfurnished rental.
Be careful with special cases. If your tenant is over 65 years old and has a low income, they benefit from protected tenant status. In that case, you cannot give notice to sell unless you yourself meet certain age and income conditions, or unless you offer suitable rehousing that matches their needs, financial means, and is located close to their current main residence. This protection is intended to prevent a vulnerable tenant from being left without housing because of a sale.
What Discount Should Be Applied to the Sale Price of an Occupied Property?
Selling an occupied property generally leads to a discount of 5 to 20% compared with a vacant property. This reduction in price is explained by the constraints the buyer must accept: inability to occupy the property immediately, taking over the lease as is, and waiting until the end of the lease to recover possession.
Several factors directly influence the amount of the discount. The remaining lease term plays a key role: less than 1 year before expiry usually reduces the discount to 5–10%, while a recently signed lease can push it to 15–20%.
The rent amount also matters: rent below market level increases the discount, because the investor buyer sees lower profitability. Conversely, rent at market level or slightly above can limit the drop in the sale price.
A solvent tenant, with stable occupancy and a good payment history, reassures the buyer and limits the discount. On the other hand, a protected tenant, such as a person over 65 with low income, may make it harder to recover the property and justify a larger discount.
In cities with strong rental demand, the discount is often smaller. Investors actively seek occupied properties to avoid rental vacancy and benefit from immediate yield. Finally, some extreme cases, such as leases governed by the 1948 law, may result in a discount of up to 50%.
Remaining lease term | Estimated discount |
|---|---|
Less than 1 year | 5 to 10% |
Between 1 and 3 years | 10 to 15% |
More than 3 years | 15 to 20% |
How Do You Organize Viewings and Secure the Procedure with an Agency or Real Estate Advisor?
When you sell an occupied property, viewings cannot take place on Sundays or public holidays, and their duration is limited to a maximum of 2 hours per day in order to preserve the tenant’s peace and quiet. Organizing viewings requires respectful coordination with your tenant. You must obtain their prior agreement and agree together on reasonable time slots.
Before finalizing the sale, you will need to provide the buyer with several essential documents: the current lease agreement and its annexes, the mandatory diagnostics such as EPC, asbestos, and lead, the check-in inventory, and the amount of the security deposit. These elements allow the future owner to know the exact rental situation and ensure continuity of the lease under the best conditions.
Using an Optimhome real estate advisor makes this process much easier. Your advisor handles the negotiation, coordinates viewings with the tenant, prepares the entire administrative file, and ensures a smooth transition between you, the tenant, and the buyer right up to the signing of the preliminary agreement before the notary. This local expertise saves you time and secures every stage of the transaction.
If you would like to sell your rented property with complete peace of mind, contact an Optimhome advisor near you or value your property online for free to get your project started under the best possible conditions.
Frequently Asked Questions About Selling a Rented Apartment
Is It Better to Sell a Rented Apartment or a Vacant One?
That depends on your situation. Selling with the tenant in place allows you to keep collecting rent until completion and avoid vacancy, but it involves a discount of 5 to 20% and limits your target audience to investors. Selling vacant broadens your audience to private buyers and helps optimize the price, but it requires waiting.
Why Buy a Rented Property to Live In?
Buying a rented apartment makes it possible to acquire it at a lower price and then give notice to the tenant when the lease ends. Be careful: if you buy while the lease is still running, you must respect a minimum period of three years before you can serve notice to occupy, then wait an additional six months.
What Is a Long Sale?
A long sale means extending the period between signing the preliminary sale agreement and the final deed beyond the usual three months. This gives the tenant more time to find a new home and organize their move. This solution, negotiated between seller and buyer, provides a smoother transition for all parties.
My Landlord Is Selling and I Cannot Find a New Place to Live: What Are My Rights?
If you are a protected tenant, meaning a person over 65 with low income, the landlord is required to offer you suitable rehousing located close to your current main residence. In all cases, the landlord must respect the legal notice periods and cannot force you to leave before the lease expires.
How Do You Recover a Property Sold with the Tenant in Place?
The new buyer must respect the current lease and can only serve notice when it expires. For an unfurnished property, notice must be sent six months before the end of the lease by registered letter or bailiff’s notice. For a furnished property, the notice period is three months.
Author :
Fabrice DOBROWOLSKI - Optimhome Network Development Director
Optimhome offers you personalized support for your real estate project. Benefit from all my advice, based on several years of experience, to ensure the success of your project.
