Selling a rented property

What it means and how it works

Owning property in the province of Monza and Brianza is a privilege, thanks to its strategic location close to Milan and its suburbs on one side, and the beauty of Lake Como and Lake Lecco on the other. However, certain circumstances may require you to sell your home quickly – even if it is already occupied by tenants.

In these cases, one of the best tips for selling a house quickly is to refer to Law No. 431 of 1998, which covers the sale of rented properties.

But what does that mean? The law allows a property owner, even with an active lease in place, to legitimately sell their property before the lease ends. Contrary to popular belief, selling a rented property does not cancel the lease; rather, it transfers the lease to the buyer/new owner.

Landlord's obligations and tenant's rights

According to the law, the buyer of a rented property becomes the new landlord and is required to honor the lease and its terms—even without the tenant's consent. This is an exception to the usual rules around the transfer of reciprocal obligation contracts.

The reason for this rule is to streamline property sales and facilitate ownership transfers. While the seller is not required to obtain the tenant's consent, they are legally obligated to inform the tenant of their intent to sell the property in a timely manner.

Right of first refusal in the sale of rented properties

This obligation to notify the tenant gives rise to a corresponding right: the tenant's right of first refusal. Article 38 of Law 392/1978 establishes that the tenant has the right to purchase the property before it is offered to others.

But what is the right of first refusal? The law allows the landlord to sell the rented property at any time and without tenant consent. However, it requires that the tenant be informed of the sale and the asking price, giving them priority over any other potential buyer. The tenant then has 60 days to exercise this right and purchase the property. If they decline, the property can be sold freely on the market, following real estate valuation trends in Monza and Brianza.

No contract clause can override the tenant’s right of first refusal, though certain conditions and exceptions apply:

• The lease must still be valid or at its first expiration.

• The tenant must not own other residential properties.

• The right is excluded if the property is transferred to a spouse, a relative within the second degree, or a co-heir of the landlord.

• It does not apply in cases of involuntary transfers, company contributions, or bulk sales of entire buildings.

How to sell a rented property

Selling a house in Monza and Brianza – especially a rented one – is not always simple or quick without the help of an experienced real estate agency. First, because the landlord-tenant relationship may be strained; second, because a rented property may be less attractive on the market.

A home that’s already occupied may seem like a drawback to potential buyers, who would not have immediate full access to the property. That’s why you should turn to Engel & Völkers Monza and Brianza to find out how to sell your apartment in the shortest possible time.