On the Parisian market, a significant proportion of apartments for sale are sold tenanted, with a tenant in place, a current lease, and a set of rights that the buyer can neither ignore nor bypass. For some buyers, this is an absolute deal-breaker: who wants to buy an apartment they cannot live in immediately? For others, it is a calculated opportunity: the discount linked to the occupation, combined with immediate rental income, can make a tenanted property an excellent investment.
The reality lies between these two views. Buying a tenanted property in Paris is a profitable operation when you master the rules of the game, and a trap when you do not. French tenancy law strongly protects the tenant, and recovery timelines can surprise an uninformed buyer. A lease expiring in two and a half years, a protected tenant over 65, a below-market rent that limits profitability: each of these situations has precise legal and financial implications.
At Home Select, our property hunters assist both primary residence buyers and investors. In both cases, analysing a tenanted property requires particular rigour, because you are not just buying an apartment, you are buying a tenancy situation.
The discount on a tenanted property: what are we talking about?
An apartment sold tenanted sells for less than one sold vacant. This discount reflects the constraints that the occupation imposes on the buyer: inability to live in the property immediately, uncertain recovery timeline, tenant rights to respect, risk of dispute in case of a contested notice.
The size of the discount depends on several factors that combine.
The remaining lease term. A standard unfurnished lease (law of 6 July 1989) lasts three years. If the lease expires in six months, the discount is small: the buyer will be able to recover the property quickly by giving notice for personal occupation. If the lease has just been renewed, the buyer may have to wait up to three years and six months (end of lease + six months’ notice) before being able to give notice. The longer the wait, the greater the discount.
The tenant’s profile. A tenant under 65, with no special protection, can receive notice for personal occupation under standard conditions. A tenant over 65 whose income is below the threshold set by decree benefits from enhanced protection: the landlord can only give notice if they offer the tenant equivalent rehousing in the same arrondissement or neighbouring arrondissements. This constraint is heavy in Paris, where finding equivalent housing at a comparable rent is often impossible. The discount for a protected tenant is significantly higher.
The rent level. A rent at market level means the investor receives a decent yield from the outset. A rent well below market rate (long-standing tenant, historically low rent) reduces immediate profitability and increases the discount: the investor is buying a sub-optimal income stream that can only be adjusted when the tenant departs.
The type of lease. Leases under the 1948 law, still in force for some older Parisian properties, give the tenant a virtually perpetual right to remain, with a rent far below market rate. The discount on a 1948 law property can reach 30 to 50%: this is a niche market reserved for very patient investors or buyers who do not need to recover the property.
As a rough guide for Paris in 2026: a tenanted property with a standard lease expiring in one to two years sells at a 5 to 12% discount. A property with a recently renewed lease (three years to run) sells at a 10 to 18% discount. A property with a protected tenant or an old lease sells at a 15 to 25% discount, sometimes more.
The legal framework: tenant rights
French tenancy law is among the most tenant-protective in the world. The buyer of a tenanted property must understand this framework before committing, not to contest it, but to adapt their strategy.
The lease continues automatically. When a rented property changes owner, the current lease continues on the same terms. The new owner cannot modify the lease, increase the rent (except under an indexation clause), or reduce the remaining term. The tenant does not even need to consent to the change of ownership: they are simply informed by the notary and rent is henceforth paid to the new owner.
Notice is strictly regulated. The owner can only give the tenant notice at the end of the lease, with a minimum of six months’ notice before that date. The notice must cite one of three grounds provided by law: personal occupation (the owner, their spouse, ascendants or descendants), sale to the tenant (notice to sell with pre-emption right), or a legitimate and serious ground (serious breach by the tenant of their obligations).
The notice must be delivered by registered letter with acknowledgement of receipt, by bailiff’s writ, or hand-delivered against receipt or counter-signature. A notice sent by ordinary post is void. A notice with insufficient grounds is void. A notice delivered outside the deadline is void. Formal rigour is absolute.
The tenant’s pre-emption right. In the case of notice to sell, the tenant has a pre-emption right: they can buy the property at the price proposed by the owner, within two months of receiving the notice. If the owner subsequently lowers the price to sell to a third party, they must offer this new price to the tenant, who has a further one-month period to decide.
Protection for elderly or vulnerable tenants. A tenant over 65 (at the time of lease expiry) whose income is below a threshold set by decree can only receive notice if the owner offers rehousing that corresponds to their needs and is geographically close to their current home. This rehousing obligation is a major constraint in Paris, where affordable housing is extremely scarce.
Tenancy law is not something to improvise. Our property hunters analyse the legal situation of every tenanted property so that you buy with full knowledge of the facts, and at the right price. Entrust us with your project
Buying strategies based on your project
A tenanted property is not handled the same way depending on whether you are buying to live in or to invest. Both strategies are legitimate but radically different.
Primary residence strategy: buying to live in eventually. You are buying a tenanted property with the intention of moving in after the tenant leaves. Your objective is to recover the property within a reasonable timeframe, benefiting from the occupation discount.
The key to this strategy is timing. The ideal moment to buy a tenanted property with a view to living there is when the lease expires within twelve to eighteen months of purchase. This gives you time to give notice for personal occupation within the legal deadlines (six months before expiry), finalise your financing, and prepare your move.
Notice for personal occupation is the strongest legal ground. You must demonstrate your genuine intention to live in the property, not to resell it immediately or re-let it. The notice must state the grounds, the identity of the person who will occupy the property, and the nature of the relationship (yourself, your spouse, an ascendant or descendant). A fraudulent notice (fictitious occupation to re-let afterwards) exposes you to sanctions: the tenant can obtain reinstatement and damages equivalent to six to twenty-four months’ rent.
A lever often more effective than formal notice: amicable negotiation. Offering the tenant a departure indemnity (often called “amicable eviction indemnity”) in exchange for their voluntary departure before the end of the lease. The amount varies depending on the market, the neighbourhood, and the goodwill of both parties: from 5,000 to 20,000 euros in Paris, sometimes more for long-standing tenants in desirable arrondissements. It is an additional cost, but one that can save one to two years of waiting, and spare the costs of contentious proceedings.
Investment strategy: buying to keep the tenant. You are buying an already-let property as a long-term investment. The sitting tenant is an advantage: no vacancy, no re-letting costs, immediate income.
The purchase discount is your immediate gain. You are buying a property 10 to 15% below the vacant market price, while receiving rent from day one. The gross yield is mechanically higher than that of a property bought vacant and then let.
Points of vigilance for the investor: the rent level relative to the market (a below-market rent reduces the yield), the tenant’s reliability (payment history, length of stay, professional profile), and the condition of the property (a tenant in place for fifteen years has probably not renovated: works will be necessary when they leave).
The particular case of block sales (vente a la decoupe)
Block sales, where an institutional owner (insurer, property company) sells an entire building unit by unit with tenants in place, peaked in Paris in the 2000s and left its mark on legislation.
When a whole building is sold off in this way, each tenant benefits from an enhanced pre-emption right: they can buy their home at the proposed price, within two months (four months if they need a loan). The collective agreements of 2005 and 2006, incorporated into law, strictly regulate the process and protect tenants against mass evictions.
For the external buyer (the one purchasing a unit the tenant did not wish to pre-empt), the situation is identical to a standard tenanted purchase, with the added detail that the tenant has already declined to buy, which gives an indication of their financial situation and their intention to stay.
Pitfalls to avoid
Buying a tenanted property carries specific pitfalls that our property hunters have learned to identify.
Underestimating the recovery timeline. The buyer who expects to recover the property in six months may find themselves waiting three years, if the lease has just been renewed. Before buying, calculating the minimum recovery timeline is essential: current lease expiry date, minus six months’ notice, plus the time of proceedings if the tenant contests the notice.
Ignoring the tenant’s profile. The tenant’s age, income, and family situation determine the level of protection they enjoy. A tenant aged 64 at the time of purchase will become a protected tenant (over 65) at the lease expiry, a change of status that considerably complicates recovery. This is a point the buyer must check before making an offer.
Neglecting rent control. Paris has applied rent control since 2019 (renewed and strengthened since). The current rent may be below the control ceiling, leaving room for revaluation at lease renewal. But it may also exceed the ceiling, in an irregular situation, which exposes the new owner to a rent reduction request from the tenant. Checking rent compliance with the control framework is an essential step in the analysis.
Buying without reading the lease. The current lease is a contractual document binding on the new owner. Its clauses (term, rent, charges, security deposit, special conditions) apply in full. A poorly drafted lease, with ambiguous clauses or unusual conditions, can create problems for the buyer. Demand a copy of the lease before signing the preliminary agreement.
Giving notice incorrectly. A void notice is a notice that does not exist: the lease automatically renews for three years, and the buyer has lost their window. Grounds for voidness are numerous: notice period not respected, insufficiently precise grounds, error in the identity of the person who will occupy, non-compliant form of notification. Have the notice drafted or checked by a specialist lawyer or by the notary.
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The profitability calculation for a tenanted property
For the investor, the profitability calculation for a tenanted property must include the purchase discount and rental income, but also hidden costs.
A concrete example. A one-bedroom apartment of 42 sq m in the 18th arrondissement, let at 950 euros/month to a tenant in place for five years. Estimated vacant value: 340,000 euros. Tenanted sale price: 295,000 euros (13% discount). Annual rent: 11,400 euros. Non-recoverable co-ownership charges: 1,200 euros/year. Property tax: 800 euros/year. Gross yield: 11,400 / 295,000 = 3.86%. Net yield (before tax): (11,400 - 1,200 - 800) / 295,000 = 3.19%.
For comparison, the same property bought vacant at 340,000 euros and let at the same rent would give a gross yield of 3.35% and a net yield of 2.76%. The purchase discount improves the yield by 0.4 to 0.5 percentage points: a significant difference over the holding period.
But the calculation does not stop there. When the tenant leaves, refurbishment works will probably be necessary (an apartment occupied for five years without intervention costs 200 to 500 euros/sq m to refresh, or 8,400 to 21,000 euros for a 42 sq m). And the rent increase for the new tenant may be limited by rent control.
The true profitability of a tenanted property is measured over the total holding period, incorporating the initial discount, rent received, refurbishment costs, and capital gains on resale. This is a calculation our property hunters systematically carry out for their investor clients, because an attractive gross yield can mask a mediocre net return.
When a tenanted property is the best option
Buying a tenanted property in Paris makes sense in several scenarios.
For the disciplined investor seeking immediate yield and a purchase discount, a tenanted property with a good tenant is the optimal configuration. The discount funds future works and improves the running yield.
For the primary residence buyer who plans ahead, buying a tenanted property with a lease expiring in twelve to eighteen months allows you to benefit from the discount while having a reasonable recovery horizon. The waiting time is used to prepare the renovation works and organise the move.
For the patient buyer willing to negotiate with the tenant, an amicable departure indemnity combined with the purchase discount can result in a total cost lower than a vacant purchase, with a controlled timeline.
In all cases, the success of the operation rests on a precise analysis of the tenancy situation, a fair assessment of the discount, and a recovery or retention strategy adapted to the buyer’s project. This is exactly the type of analysis our property hunters carry out daily, because in Paris, a well-bought tenanted property is often a better investment than an overpaid vacant one.
Frequently asked questions
What is the discount on an apartment sold with a tenant in Paris?
The discount varies from 5 to 20% depending on the remaining lease term, the rent level compared to market rate, the tenant's age and the type of lease. A standard lease expiring within less than a year carries a low discount (5-10%). A 1948 law lease or a protected tenant (over 65, low income) can result in a 15-20% discount or even more.
Can you give notice to the tenant after buying a tenanted property?
Yes, but only at the end of the current lease term and with a minimum of 6 months' notice. The notice must state a reason: occupation by the owner (you or a close relative), sale of the property, or a legitimate and serious ground. Notice for personal occupation is the most common for a buyer who wishes to live in the property.
Does the tenant have a pre-emption right when the owner sells?
Yes. When the owner gives the tenant notice to sell, the tenant has a pre-emption right: they can buy the property on the terms proposed by the owner, within two months. If the tenant does not respond within this period, the owner is free to sell to a third party, but at the same price or higher.
How long does it take to recover a tenanted property after purchase?
If the lease expires within less than a year after purchase, you can give notice for the next expiry date with 6 months' notice. If the lease has just been renewed (3 years for unfurnished rental), you will have to wait for the next expiry. In the worst case, the recovery period can reach 3 years and 6 months. In practice, an amicable negotiation with the tenant (departure indemnity) often speeds up the process.
Is buying a tenanted property worthwhile for an investor?
Yes, it is even the ideal configuration for a buy-to-let investor: the property generates income from day one, the discount reduces the purchase price, and the sitting tenant avoids vacancy costs and risk. The investor should verify that the rent is at market level and that the tenant is reliable (payment history).
