The sale of a rented furnished apartment may seem complex, but it offers real opportunities for owners wishing to sell without rental vacancy, while attracting informed investors. However, this requires knowing the best practices, the legal obligations and the levers to activate in order to successfully carry out this transaction.
Here is a complete guide incorporating Book-a-Flat Invest’s advice and industry best practices.
1. Why sell a rented furnished apartment?
A furnished apartment, rented with a one-year lease, represents an interesting resale opportunity for several reasons:
- No rental vacancy and immediate liquidity : the property continues to generate income during the sale. Rent continues to be collected even though a sale can take between 2 and 6 months in Paris!
- Appeal for investors: one-year furnished leases are flexible, and allow the buyer to have a tenant in place with immediate rental profitability
2. The two possible options for selling
a) Sell vacant (without tenant)
The owner may give notice to the tenant at the end of the lease, with a notice period of 3 months before the anniversary date of the lease for a furnished rental. They must respect the right of first refusal if the property is rented unfurnished. Please note that the notice must be sent and received no later than 3 months before the anniversary date of the lease.
b) Sell occupied (with tenant)
More common in furnished rentals, this case allows the current lease to be transferred to the buyer. This does not result in any change for the tenant (same rent, same conditions). This is the strategy preferred by investors who are looking for immediate rental income.
3. Impact on the sale price
A rented property may undergo a discount of 5 to 5 %, as the pool of potential buyers is more limited: rental investors looking for a financial operation or those who will want to make it their main residence later.
However, Book-a-Flat works with hundreds of rental investors actively looking. If the estimated price corresponds to a gross yield of 4%, then investors will be interested!
4. The opportunities of selling an occupied apartment for a rental investor
The sale of an apartment occupied by a tenant presents several advantages. First of all, let us look at who is interested in buying this type of property
Which buyers?
- rental investors looking to expand their real estate portfolio
- families, first-time buyers looking for an apartment now for fear of future price increases. They agree to keep the tenant for a few months or years before moving in
a) Stability of income for the buyer
A rented apartment represents an immediate source of income for the buyer. This stability is often perceived as a major advantage, especially for real estate investors who seek to make their investment profitable quickly. A property already occupied allows the buyer to receive rent as soon as the property is acquired, without having to go through the phase of searching for a tenant.
b) Guarantee of sound rental management
If the apartment is managed professionally, with reliable tenants and a regular payment history, this can increase the perceived value of the property. Investors are thus reassured by a well-managed property, which offers stable profitability over the long term.
5. Obligations and documents on the seller’s side
The seller must:
- Provide the buyer with:
- the current lease,
- the tenant file (ID, payslips, tax assessments and guarantees)
- the entry inventory report
- technical diagnostics. Note that properties with an Energy Performance Diagnosis rated G are no longer allowed for rental
- Inform the tenant of the scheduled visits even if they are required to accept them
- Plan the management of the security deposit (transfer to the buyer or inclusion in the sale price).
6. Why go through Book-a-Flat Invest?
Selling a rented apartment is a strategic process that requires in-depth expertise. Book-a-Flat Invest offers tailor-made support for owners wishing to sell their property while optimizing their profitability and management.
a) Expertise in rental management and property valuation
At Book-a-Flat Invest, we specialize in managing furnished rental properties in Paris. We have an in-depth knowledge of the rental real estate market and are able to help you assess the value of your property based on its condition, location, and rental potential. As experts in high-end furnished rentals, we can advise you on best practices to enhance your property and maximize its sale price, while respecting the needs of your tenants.
b) Because Book-a-Flat Invest has its own network of rental investors
Book-a-Flat works with hundreds of rental investors actively looking for new apartments to buy in Paris. As soon as a seller notifies us, Book-a-Flat studies the investment opportunity and launches the marketing:
- Business plan
- Rental investment booklet
- Contact with hundreds of potential rental investors and property finders
- Organization of visits with the tenant in place
c) Assistance with legal and tax aspects management
The sale of an occupied apartment can involve legal and tax complexities. Our real estate management experts will guide you through each stage of the process, from compliance with the lease to tax optimization of the transaction. We will help you prepare all the necessary documents and ensure that you comply with the applicable legislation.
Once the sale is completed, we can also assist you in the transition with the new owner, in order to ensure continuous rental management and preserve the relationship with the tenant. If necessary, we also handle administrative procedures and formalities related to the rental.
7. Conclusion: a profitable strategy
Selling a rented apartment is an operation that may seem complex, but with the right strategy and the appropriate support, it can offer many opportunities. Thanks to Book-a-Flat Invest, you benefit from tailor-made service, cutting-edge expertise in rental management, and a network of potential buyers ready to invest in profitable real estate assets.
Whether you are an owner wishing to sell an occupied apartment or an investor looking for a new opportunity, Book-a-Flat Invest is the ideal partner to support you throughout this process and ensure a successful sale.
Are you considering selling your rented apartment?
Contact our Invest team for a confidential valuation and tailored support.
Stanislas Couteaux +33 6 20 04 12 62 stanislas@book-a-flat.com
