Editorial update: · Richter Immobilien-Transaktionen
You can generally sell an apartment while its tenancy continues. A credible asking price therefore depends on the rent, lease terms and running costs as well as location and condition. Preparing this information early helps buyers assess the property and reduces delays before the notarial appointment.
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What happens to the tenancy?
Under section 566 of the German Civil Code (BGB), the purchaser takes over the landlord’s position on transfer of ownership where the statutory conditions apply. A sale alone does not terminate the lease. Advertise the apartment as tenanted and avoid promising vacant possession until that outcome has been reliably established.
A purchaser’s intended personal occupation needs a separate legal assessment. Restrictions on termination can apply, particularly following conversion into individual apartment ownership. Buyers should resolve this before making a binding commitment.
Identify the right buyer profile
Investors need evidence of income and expenditure. Owner-occupiers may consider a future move, but marketing must not present that possibility as an established right. An accurate account of the tenancy helps attract buyers whose plans fit the property.
Document the net rent excluding service charges, agreed stepped or index-linked rent provisions, recent changes, arrears and known disputes. A comparable market rent is not automatically the rent that can be achieved under the current lease in the near future. Keep those figures separate when discussing value.
Separate rental income from ownership costs
For example, monthly net rent of €850 produces €10,200 a year. Against an assumed purchase price of €255,000, that represents a gross rental yield of 4%, before acquisition costs. This is an arithmetic illustration, not a valuation or a net return.
Non-recoverable management costs, maintenance, vacancy risks and announced special assessments affect the result. Review the owners’ service-charge statement and annual budget: the tenant cannot necessarily be charged every item. Comparable transactions and the condition of the whole building also matter.
Prepare a complete document package
- The lease and amendments, rent schedule and details of the security deposit.
- Floor plan, area documentation, energy certificate and current land-register extract.
- Declaration of division, community rules, available resolutions and meeting minutes.
- Annual budget, recent accounts, maintenance reserve and planned works.
- Modernisation records and clear information on defects or payment arrears.
Share tenants’ personal data only to the extent needed for a controlled buyer assessment. A public listing should not contain complete tenancy files or residents’ contact information.
Check pre-emption rights and arrange viewings
A statutory tenant pre-emption right does not arise with every apartment sale. Section 577 BGB concerns specified circumstances, particularly conversion into apartment ownership after the tenant took possession; exceptions also apply. Ask the notary to assess the facts before committing to a completion timetable.
Agree viewings with the tenant in advance, group serious enquiries and explain the process. Unannounced access or promises of unrestricted viewing appointments can create avoidable disputes. Do not publish photographs of personal belongings without clarifying the necessary permission.
Organise the contract and handover
Transfer of legal ownership and the agreed economic handover are different events. The notarial contract should clarify the allocation of rent and costs and responsibility for service-charge accounting. Prepare tenancy records, deposit evidence and a coordinated notice to the tenant.
The deposit is not additional sale proceeds. Section 566a BGB governs the buyer’s obligations and potential residual liability of the previous landlord. For an initial sale discussion about a property in Düsseldorf or NRW, provide the property type, postcode and timeframe; sensitive documents can then be requested selectively.
