Information database

Buying an investment property that is already rented out

When an apartment with an existing lease is sold, the existing lease agreement is, in principle, transferred as such to the new owner because the sale does nullify the lease. The new landlord has no right nor responsibility to enter into a new lease agreement. This also concerns other so called ’voluntary’ assignments or transfers (exchange, gift, inheritance).

The lease agreement signed by the previous owner remains valid if the tenant has taken possession of the apartment before the assignment or transfer has taken place. The new owner is bound by the lease agreement also if the assignment contract contains a provision on the permanence of the lease agreement. This also applies if a mortgage has been taken out to secure the lease.  

The transfer is recorded in the landlord’s copy of the lease agreement. Remember to transfer the security deposit to the new landlord as well. If a rented apartment is sold, the seller must notify the tenant. Also, the buyer must notify the tenant of the grounds with which they have become the new owner. Contact information and account information for rent payments should be given at the same time. If the landlord in the lease has changed and no written notification thereof has been made to the tenant, the tenant may refer to a payment made under the existing lease agreement if they were not aware of the change in landlords. 

Since the lease agreement is transferred as is, the new landlord may not amend it unilaterally. Any amendments are to be agreed with the tenant. The new landlord may end the lease agreement with the usual measures.