Immobilienpartner Sachsen

Reason to sell

Selling a rented property

Many owners of let properties eventually wonder whether a sale would make sense for them — and what it would mean. This page gives you an honest overview.

Active investor demand

In Dresden there is stable demand from capital investors — including for let properties

Tied-up capital

For some, the sale is the chance to reorganise their assets or deploy them flexibly

Tax-free gain

Anyone who holds the property for more than 10 years sells the gain entirely free of speculation tax (Spekulationssteuer)

Can I sell my rented apartment in Dresden?

Yes, selling a rented property is possible at any time and without the tenant's consent. The tenancy continues unchanged, because the buyer automatically steps into the landlord's position under § 566 BGB ("sale does not break a tenancy"). Compared with an empty property a price discount of 10 to 20 % is customary, depending on the tenancy situation, the rent level and the remaining term.

Why the ongoing tenancy is often an advantage for buyers

Anyone buying as a capital investor is not looking for an empty property — they are looking for one that generates income immediately. An existing tenancy means for them: secured income from day one, no effort finding tenants, no vacancy risk.

That changes how a let property is marketed. The target group is a different one — but it exists, and it is active in Dresden.

What strengthens the value

  • —Long-standing, reliable tenant
  • —Rent close to the comparable local rent
  • —Sought-after location in Dresden
  • —Low renovation needs

What investors assess

  • —Price multiple (in Dresden: 20–28)
  • —Net rental yield after costs
  • —Rent-increase potential
  • —Energy efficiency and condition
Calculate your property's yield

What you can realistically expect from the sale

Let properties usually achieve 10–20 % less than comparable vacant properties. That is the market standard. How large this difference actually is depends on the individual case — on the rent level, the location, the condition and the property's potential.

In many cases, after a concrete calculation owners find that the net proceeds — even after tax — are significantly more than expected. It is worth knowing this figure once.

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The tax side — especially if you have owned for more than 10 years

For let properties the rule is: anyone who has held the property for more than 10 years pays no speculation tax (Spekulationssteuer) — the entire capital gain on disposal remains tax-free. For properties that have risen significantly in value over this time, that can be a considerable amount.

If you have not yet reached the 10 years, a brief calculation is still revealing — the tax reduces the gain, but rarely cancels it out.

Calculate speculation tax

On personal use and termination: Terminating the tenant before the sale is possible only within narrow legal limits. Anyone who attempts this in order to achieve a higher vacant-possession price takes a risk — and in practice rarely gains the hoped-for advantage.

How the sale proceeds

The process is manageable — once you know what matters.

1

Compile the documents

In addition to the usual documents, you need the tenancy agreement and service-charge statements. I go through this with you.

Which documents do I need?
2

Determine value and yield metrics

For investors, yield is what counts — not a general price comparison. I prepare an analysis that is decisive for the purchase.

Rental yield calculator
3

Find the right prospects

Capital investors buy differently from owner-occupiers. Marketing and outreach adapt accordingly.

4

Guide the completion

Viewing, negotiation, notary — nothing is left open until handover.

Ancillary costs of the sale
Calvin Linke

Managing Director & Property Adviser

Calvin Linke

Dresden local expert — with many years of experience supporting property acquisitions and brokerage in the Elbe valley.

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Tax note: Non-binding guidance, without warranty – not a substitute for tax advice.

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FAQ

Frequently asked questions

Can I sell my rented apartment in Dresden?
Yes, selling a rented property is possible at any time. The tenancy continues unchanged after the sale — the buyer automatically steps into the landlord's position (§ 566 BGB: 'sale does not break a tenancy'). The tenant does not have to consent to the sale.
How much less do I get for a rented property?
Typically 10–20 % less than for a comparable vacant property — depending on the tenancy situation, the rent level and the remaining term. A property with a market-level rent and a good tenant can also be sold without a significant discount. One with a rent well below market and a fixed-term tenancy, by contrast, with a larger one. The buyer group changes: instead of owner-occupiers, capital investors buy.
What happens to the tenancy when selling?
The tenancy remains fully in place. The buyer takes over all rights and obligations from the existing tenancy — including the deposit, the obligation to provide service-charge statements and ongoing maintenance duties. The tenant has to do nothing. They merely receive a notification of the change of owner.
Can I terminate the tenant's lease in order to sell the property vacant?
Only under strict conditions. Ordinary termination of residential tenancies is only possible if the landlord or close family members need the apartment for their own use (§ 573 BGB). The termination must be well justified and observe the statutory notice periods (3–9 months, depending on the duration of the tenancy). Economic reasons alone — that is, the wish to sell the property at a better price — are not sufficient.
Do I have to pay speculation tax if I sell a rented property?
The same rules apply as for owner-occupied properties: if the property has been in your private assets for more than 10 years, the sale is tax-free. With a holding period under 10 years the profit is taxed at your personal income tax rate. Unlike with owner-occupation, there is no exception via the 2-out-of-3-years rule for rented properties — the holding period is the only criterion.
What is an investment property and who buys it?
An investment property is a property held to generate rental income — whether a condominium, an apartment building or a commercial property. Buyers are capital investors who aim for an ongoing return (rental income) and long-term appreciation. In Dresden, investors mainly buy condominiums in good locations (Blasewitz, Neustadt, Pieschen) and apartment buildings with a stable tenant base.
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