Is it worth buying a flat with a tenant? Risks and realistic scenarios

In the course of my work, I very often come across situations where clients considering buying a flat in the Tricity come across an offer for flat with tenant and an active lease. For some buyers, this is a huge plus, as the property can generate a regular income from day one and does not require looking for a new tenant. However, there have also been situations for me where poorly prepared documentation or imprecise provisions in the lease agreement have later caused problems with the takeover of the flat, the settlement of the deposit or the termination of the lease.

My name is Rafał Radomski and for years I have been running my own real estate offices in Gdansk and Gdynia. I often find that the biggest emotions usually arise when buyers don't quite know what rights the tenant has after the sale of the flat and what actually passes to the new owner. In reality, it is the details that matter most - the type of contract, the payment history, how the utilities are billed or even the contact with the tenant itself before signing the deed. That is why it is worthwhile to calmly analyse the risks before buying and not to treat a flat with a tenant solely as a „ready-made investment without problems”.

In the remainder of this article, I will show when a flat with a tenant can be a good investment and when you should be very careful before buying a property. I invite you to read on.

When can a flat with a tenant be a good investment?

Based on my experience in the industry, I can say that the purchase of a property with an active tenancy agreement is very often of interest to people planning to invest in flats for rent and build a stable source of passive income. A ready-made tenant means no vacancy and the possibility of generating income practically from the moment the transaction is finalised, which is why such a solution is convenient especially for clients analysing the buying a flat in the Tricity in terms of profitability and security of investment. However, the location of the property, the standard of finish, the length of the existing lease and whether the tenant regularly pays rent and takes care of the flat are all important.

Which flats are most often sold with a tenant?

Most often, these are investment properties previously bought typically for rent, including studios, two-room flats and properties located close to universities, business areas of the city or well-developed public transport. The owners of such properties often decide to sell the flat together with the tenant, as this increases the attractiveness of the offer for people looking for a ready-made investment product with a continuous lease. In the case of well-prepared documentation and transparent contractual terms, such flats can be very attractive to clients working with a professional estate agency.

What are the risks involved in buying a flat with a tenant?

The biggest danger is when a new landlord takes over an untrustworthy tenant with payment problems, eviction or unclear contract provisions. Many people do not realise that once a property is purchased, the rights and obligations of the landlord are transferred to the new owner.

It is worth checking carefully before signing the purchase contract:

1. Type of tenancy agreement.
2. Rent payment history.
3. Deposit amount.
4. Technical condition of the flat.
5. Protocol of acceptance and delivery.
6. Utility billing.
7. Any arrears to the housing association.

It is particularly important to analyse the type of lease. The occasional tenancy gives the landlord much more scope to safeguard his or her interests than a classic residential lease.

What to look out for before signing the purchase contract?

Before buying, it is a good idea to ask the seller for a set of documents related to the lease. It is also good practice to talk to the tenant before the transaction is finalised, as this allows you to better assess the situation and avoid later misunderstandings.

How do you safely take over a flat with an active tenancy?

A safe takeover of the property requires the documentation and paperwork to be thoroughly sorted out. It is of paramount importance that a complete tenancy agreement, payment confirmations, deposit documents and a protocol describing the condition of the flat are handed over.

Among other things, it is worth taking care of:

• Accurate utility billing
• Confirmation of deposit amount
• Provision of tenant contact details
• Documentation of housing equipment
• Confirmation of administrative charges
• Current status of meters

Our agents always help to carefully analyse the documents, the tenancy agreement and the legal situation of the property even before the purchase. This makes it easier to avoid tenant-related problems and safer to go through the whole process the purchase of a flat.

What is worth checking before buying a flat with a tenant?

Element to be checked	Why does it matter?	What risks might arise?
Lease agreement	It sets out the rights of the landlord and tenant. It is worth checking the duration of the tenancy and the notice period.	Unclear provisions can make it difficult to terminate a lease.
Tenant's payment history	It shows whether the tenant pays rent and utilities regularly. It is a good idea to check previous settlements.	The arrears may pass to the new owner.
Security deposit	It is a good idea to establish the amount of the deposit and how it will be transferred. Everything should be described in the documents.	Lack of arrangements can lead to financial disputes.
Handover and acceptance protocol	Documents the condition of the dwelling and furnishings. Good if it includes photographs.	The absence of a protocol makes it difficult to pursue a claim.
Type of tenancy	The occasional tenancy gives more opportunities to the landlord. The type of contract makes a big difference.	A simple contract can make it difficult to recover the flat.
Technical condition of the flat	It is worth checking the walls, floors and installations. Flats for rent are sometimes more worn.	Hidden defects can generate additional costs.
Administrative charges and utilities	You need to check the rent and current accounts. Any arrears are also important.	Unpaid fees can cause problems after purchase.

Is it worth buy a flat with a tenant in the Tri-city?

A lot depends on the purpose of the property purchase. I always tell my clients - if the flat is to serve an investment function, an active lease can be a big advantage and provide an immediate income. For those looking for a property for themselves, the situation can be more complicated, especially if the lease is still in place for a long time.

Therefore, during buying a flat in the Tricity It is of paramount importance to analyse the documentation, check the tenant's situation and adequately assess the investment risk. A well-executed transaction can be very profitable financially, but requires caution and thorough preparation.

At Radomski Nieruchomości we pay special attention to the security of the transaction, the analysis of the legal status of the property and the transparency of the documentation related to the lease. This allows our customers to make informed decisions and reduce the risks associated with the purchase of an investment flat.

If you plan to buying a flat and you want to safely analyse a property with a tenant, contact Get in touch with our team at Radomski Nieruchomości. We will help you to assess your risk, check your documents and go through the entire purchase process with peace of mind.

+48 783 187 968 (Gdansk)
+48 884 843 118 (Gdynia)
biuro@radomskinieruchomosci.pl

FAQ - Frequently asked questions

1. does the tenant have to move out after purchasing the flat?

Not always. If there is an active lease in place, the new landlord assumes the rights and obligations of the landlord, so the tenant can continue to legally use the flat as stated in the lease.

2. does the new owner take over the deposit?

Yes, more often than not, the deposit will pass to the new owner together with the obligation to settle it later. That is why it is advisable to establish the amount of the deposit and the way in which it is to be transferred carefully before the purchase.

3. Can the lease be terminated after the purchase of the flat?

The possibility of termination depends primarily on the type of contract signed and the provisions found in the lease documentation. The occasional tenancy usually gives the landlord more scope for action than a standard tenancy agreement.

4. is it cheaper to live with a tenant?

Often yes, especially if the tenant is causing problems or the tenancy agreement makes it difficult to take possession of the property quickly. Sometimes, however, flats with a reliable tenant achieve higher prices because they are attractive to investors.

5 How do I check whether a tenant is paying regularly?

It is best to ask for transfer histories, rent payment receipts and administrative settlements. It is also worth verifying that there are no arrears to the housing association or utility providers.