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Key Aspects to Evaluate When Buying a Rented Home

Key Aspects to Evaluate When Buying a Rented Home - Key Aspects to Evaluate When Buying a Rented Home

Buying a rented home is permitted by law and offers some advantages. However, it is a decision one should consider carefully. Some factors can significantly influence the purchasing process and the benefits of the operation.

What you need to know before buying a rented home


Although it is possible to acquire a home that is under a rental contract at the moment of the transaction, the first step is to know some rights and obligations:

• The tenant has the right of first refusal and withdrawal. It means that the owner is obliged to inform them of the intention to sell, and other things being equal, the tenant has priority when purchasing the home.

• While the rental contract is valid, the home is the tenant's domicile. Therefore, the owner cannot show it to potential buyers without the tenant's consent.

The law requires subrogation to the rental contract and respect all its clauses and conditions. The only way to dispose of the home before the end of the contract would be to reach an agreement with the tenant.

Advantages of buying a rented home

Despite these conditions, buying a rented home offers the following advantages:

• We'll start recovering the investment in the first month thanks to the rent.
• It is not necessary to invest time or resources to rent the property or choose the most suitable tenant.
• Also, there'll be no need to make improvements to putting it on the rental market.

Issues to consider before purchasing the home

Although a priori buying a rented home offers benefits, it is also advisable to analyze in detail some fundamental issues so that the operation is advantageous and unforeseen events do not arise:

• It is fundamental to carefully analyze the current rental contract: rent, conditions, duration or particular clauses.
• As in any housing purchase operation, ensure the home is free of encumbrances.
• You must also check the tenant's solvency and their commitment to continue paying as agreed. If there has been a delay or non-payment, purchasing the home may not be the best decision.
• Knowing the state of the home can be complicated if the tenant refuses to allow visits. If you go ahead with the purchase, we recommend requesting an inventory of the contents from the current owner or a reduction in the home price.
• When seeking profitability, it is necessary to analyze aspects that may condition future benefits, like the declaration of stressed areas according to the new Housing Law, which establishes certain limits regarding rental prices.
• It is always possible to negotiate the sale price based on aspects such as the state of the property or the time remaining until the end of the rental contract.

Investing in a rented home is a great opportunity. At Spainhouses.net, you will find a broad real estate offer throughout Spain. Furthermore, in the statistics section, you can find out the price of rentals by area, making it easy to calculate potential profitability.Start searching now.

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