Sale · 6 min

Selling an apartment with a tenant in place: rights, options and price

Can you sell your rented apartment? We explain the tenant’s rights, the selling options and how the contract affects the price in Madrid.

Selling an apartment with a tenant in place is more common than it may seem. Many owners in Madrid decide to sell a rented property because they need cash, want to reinvest or simply prefer to stop managing a rental. The good news is that you can sell a rented property; the key is to understand the tenant’s rights and choose the right strategy so as not to lose value.

Can you sell a rented apartment?

Yes. Owning the property means you can sell it even if it is rented out. What changes is that the buyer will, as a rule, have to respect the current tenancy agreement in line with what the law and the contract itself set out. That is why it is essential to review the contract before advertising the property: signing date, term, extensions, rent and whether any waiver of pre-emption rights was included.

The tenant’s rights

The tenant may have a **right of first refusal and right of withdrawal**, that is, priority to buy the property on the same terms as a third party. Unless the contract includes a valid waiver, the owner must notify them reliably of the intention to sell, the price and the terms. If this is not properly notified, the tenant could make a later claim. If in doubt, consult a specialist solicitor: time limits and requirements depend on each contract.

Three ways to sell

**1. Sell to the tenant themselves.** This is the simplest route. They know the property, already live there and may be interested if the terms are reasonable. It is worth suggesting this before going to market.

**2. Sell to an investor with the tenant in place.** Some buyers are specifically looking for rented properties because they generate income from day one. In this case, the price is usually calculated based on the rental yield and the time left on the contract.

**3. Sell once the property is vacant.** If the contract ends soon or an agreement is reached with the tenant to leave the property, you can sell it empty. Vacant properties usually attract more buyers looking for a main residence.

How does a tenant affect the price?

A rented property is aimed at a smaller audience, so its price is often somewhat lower than that of an empty property. The difference depends on the rent, the remaining length of the contract and the relationship with the tenant. To estimate both scenarios, you can use our free online valuation tool and then compare it with a professional valuation.

Viewings and the relationship with the tenant

The tenant is not obliged to allow viewings unless this has been agreed in the contract, so it is best to speak to them from the outset. Explaining the process, agreeing times and respecting their privacy greatly improves cooperation and the property’s image in the eyes of buyers.

Documents required

In addition to the usual sale documents (title deed, simple land registry note, energy performance certificate, IBI and community fee receipts), you will need the tenancy agreement, proof of rent payments and evidence of the deposit being lodged.

How UBICASA can help you

At UBICASA we analyse your contract, work out the price in both scenarios and find the right buyer, whether investor or end buyer. If you want to sell your flat in Madrid or would rather keep renting out your property with peace of mind, we can advise you.