Is selling and buying a flat with a tenant worthwhile?

Formally there are no obstacles to selling a flat with a tenant. However, the situation may cause certain difficulties. It is not easy to find a buyer for such a property, and its price should be relatively low, which compensates the buyer for the inconvenience. So before we decide to sell or buy such a property, let us weigh up the advantages and disadvantages of this solution.

When selling a flat with a tenant, the potential buyer must be informed of the situation. Unfortunately, fraudsters who want to conceal this information are common. It is then worth checking the matter on your own, for example by analysing the entries in the land and mortgage register (księga wieczysta). A low price for the property should also arouse our suspicion. Let us not be afraid to ask directly about the situation in the flat and to expect written statements from the current owner. A solution of this kind will protect us from later consequences.

Can a tenant be evicted?

If, however, we voluntarily decide to buy a property with a tenant, we need to remember a few important points. First of all, a person living in the property can be evicted by filing an eviction application with the court. It must be remembered, though, that the municipality (gmina) has to provide the tenant with new accommodation, which sometimes takes years to find. The whole process can therefore drag on considerably, which is decidedly inconvenient for the new owner. It is comforting that the buyer can also find the tenant a new flat on their own. The owner is also entitled to compensation for a long wait for accommodation to be found for the tenant.

The right to life-long maintenance

The situation becomes more complicated if the tenant has the right to life-long maintenance (dożywocie). This means that the person living in the property may stay there until their death. It is possible to convert this privilege into a life annuity, whereby the owner of the premises pays the tenant an appropriate amount. We must also be aware that by buying a property with a tenant we take on all the owner's obligations towards the person living in the premises. Information about the existence of the right to life-long maintenance for a given property can always be found in the land and mortgage register.

Advantages of buying a flat with a tenant

It should be pointed out that there are few properties for sale with a tenant on the market, mainly because hardly anyone wants to buy this type of flat. But buying one also has its potential advantages. It pays off above all for people who treat buying a flat as a capital investment and do not intend to live there. In such a case the prices of this type of property are very affordable. The tenant themselves may prove an additional asset, looking after the premises and regularly paying the rent.