Buying a tenanted property: advantages and useful tips

Not just a property, but an asset that generates value

Buying a tenanted property – meaning one with an existing lease agreement – is an increasingly popular choice, especially among buyer-investors with a forward-looking approach. In fact, it’s a property that immediately generates income and allows you to accurately calculate the return on investment.

Why it pays to sell a tenanted property

For those putting a property on the market, having an existing lease agreement can be a competitive advantage. An apartment that already produces income is more appealing, because it’s not perceived solely as real estate, but as an investment that generates reliable returns. This allows the seller to:

• Increase the property’s value by adding the annual rental income to the evaluation
• Demonstrate with documents in hand that the apartment guarantees steady financial returns
• Attract buyers primarily interested in yield, such as investors and companies

When it’s advantageous to sell a tenanted property

Placing a tenanted property on the market is particularly beneficial in two cases:

• Long-term leases: when the tenant is stable, punctual with payments, and backed by a solid contract. In this case, the buyer perceives a guarantee of long-term income.
• Tourist-use properties: if the apartment is already listed on platforms such as Airbnb or Booking and has a proven rental history, the seller isn’t just transferring a property, but a fully operating business.

In both situations, the owner can leverage the presence of the tenant to secure a higher selling price compared to a vacant property.

When it’s advantageous to buy a tenanted property

Purchasing a property with a tenant already in place means not only becoming the owner, but also stepping into the existing lease agreements made by the seller. This allows the buyer to:

• Obtain a guaranteed and documented rental income
• Know in advance the expected return on investment
• Buy with the certainty that the property is already income-generating

In other words, the buyer acts like a true investor: they purchase a property that, in addition to its market value, already produces concrete income.

The main advantages of buying a tenanted property

• Guaranteed income: the buyer knows in advance how much they will earn each year
• “Ready-to-use” properties: apartments intended for rental are usually functional and welcoming
• Strategic location: a property located in the city center or in a sought-after area is more likely to maintain and even increase its value over time

What to check before buying

Before moving forward with the purchase of a tenanted property, it’s essential to:

• Review the lease agreement (type, duration, clauses, registration with the tax authorities)
• Verify the regularity of rental payments over the past 12 months
• Ensure there are no legal disputes between landlord and tenant
• Inspect the condition of the property and review technical documentation (floor plan, energy performance certificate, certifications, etc.)

Main types of lease agreements you may encounter

It’s important to remember that together with the property, the buyer is also acquiring a right: they step into the existing lease, inheriting the terms and conditions already agreed with the tenant.

The most common scenarios when purchasing a tenanted property include:

• Tourist rentals or short-term hospitality: properties rented out through platforms such as Airbnb or Booking. In this case, the buyer isn’t just purchasing a home, but a business that already generates regular income.
• Temporary leases: ideal for students, professionals, or companies using them as corporate housing. They often offer good income prospects since payments are frequently guaranteed by companies.
• Regulated long-term leases: traditional rental agreements (such as 3+2 or 4+4), which ensure stability and long-term continuity.

Buying or selling a tenanted property: why it’s wise to rely on a real estate agency

It’s advisable to seek the assistance of an experienced real estate agent to mediate relationships and handle the needs of all parties: seller, buyer, and tenant.

The agent’s role can be decisive: they facilitate negotiations through their mediation skills, ensuring that all parties are protected.

Relying on an agency means having greater security that the transaction will be successfully completed.

The expert’s opinion: is it worthwhile to buy or sell a tenanted property?

We asked for further insights from our real estate agent, Gianluca Silvestro, Sales Manager at Toscano Firenze Centro.

“Selling a tenanted property can be advantageous: showing that the apartment not only has real estate value, but also produces income, gives it added value.

Those who buy a tenanted property, on the other hand, usually do so as an investment, with the certainty that the property already generates significant annual income. In this type of transaction, the buyer acts as a true investor: they are not only purchasing a house, but an asset that guarantees certain returns.

In the case of tourist rentals, the buyer isn’t just acquiring the property, but an already operating business, with concrete data and documents proving its income.

In this scenario, the role of the real estate agency becomes crucial. An experienced agent can mediate between all the parties involved, ensuring their protection and the certainty that the agreements will be honored and the transaction successfully completed.”

Are you thinking of selling or buying a tenanted property?

Buying a tenanted property can be a winning strategy, especially for those seeking an investment with immediate returns and no surprises. If you’re considering buying or selling a tenanted property, turn to Toscano: our expert consultants will guide you through every step, from valuation to final contract.