Rented flat with mortgage: tenant isn't paying rent and I can't afford the repayments. How to sell urgently?
Published 6 November 2026
You can sell a rented flat with a mortgage even if the tenant owes rent arrears. The tenant's debt does not prevent the sale—it simply needs to be properly documented in the contract and agreed with your lender. The quickest way is often to sell the occupied flat with the mortgage paid from a lawyer's escrow account, without waiting for the tenant dispute to be resolved.
Summary
- Tenant rent arrears do not prevent the flat sale; the tenancy passes to the new owner under § 2221 of the Czech Civil Code (Act No. 89/2012 Coll.).
- Outstanding rent owed by the tenant typically remains your liability and can be collected separately if you do not transfer it to the buyer.
- The mortgage is paid from the purchase price via a lawyer's escrow account, and the lender's charge is removed from the Czech Land Registry once settled.
- The sooner you engage with your lender and a buyer, the more options you have; forced auction is the worst possible outcome.
- Get a non-binding offer within 24 hours using the form below this article.
What to do first when the tenant isn't paying and the mortgage is pressing
First, make a clear picture of what you owe the bank and what the tenant owes you, then decide on your next move. Panic when rental income disappears is usually the most costly advice.
- Document the period(s) during which the tenant has not paid, and keep the tenancy agreement, reminders and all correspondence.
- Check the exact status of your loan with your lender, any arrears and early repayment terms.
- Send the tenant a written demand for payment. This serves as evidence in any future dispute.
- Notify your lender in good time if you are having difficulties. Lenders often have ways to adjust repayments temporarily, but only if you ask before the arrears mount up.
- At the same time, arrange for a sales valuation so you can compare your options.
In general, mortgage arrears can lead to the lender calling in the full loan and enforcing its charge. The exact conditions are set out in your loan agreement.
What rights do you have against a non-paying tenant?
You can pursue the debt and terminate the tenancy for serious non-payment, but legal proceedings take time. In the meantime, you need to resolve the mortgage before the dispute is settled.
- Pursuing the debt: outstanding rent is pursued by court action under the Czech Civil Procedure Code (Act No. 99/1963 Coll.); once a judgment is final, collection follows under the Enforcement Code (Act No. 120/2001 Coll.).
- Terminating the tenancy: for material breach of obligations—typically prolonged non-payment of rent—the tenancy can be terminated under the Civil Code (Act No. 89/2012 Coll.), particularly §§ 2264 and 2309, even without notice. Be careful with the formal requirements of termination; any error can make it void.
- Eviction: if the tenant will not vacate voluntarily, a court order and bailiff enforcement are required. The owner cannot forcibly take possession, for example by changing locks.
Before taking action against the tenant, confirm the detailed procedure with a solicitor; this is only an outline.
What happens to the tenant and their debt after the sale?
After the sale, the tenant remains in the flat and the tenancy continues, but the debt for the past period remains between you and the tenant.
Under § 2221 of the Czech Civil Code (Act No. 89/2012 Coll.), when ownership is transferred, the buyer steps into the landlord's position. The new owner therefore cannot simply evict the tenant and must respect the agreed terms. However, ownership only passes on registration in the Czech Land Registry (Czech Land Registry Act No. 256/2013 Coll.).
Regarding outstanding rent, the following applies:
- The claim for existing arrears typically remains with you, the previous owner. You can continue to pursue it yourself.
- You can also transfer the claim to the buyer (§§ 1879 onwards of the Civil Code); this is usually reflected in the price.
- The purchase contract should include an agreement on settlement of services and any deposit (security deposit/caution) so that no disputes arise after the sale over who owes what.
Can you sell the flat without resolving the tenant's debt?
Yes, but an occupied flat with tenant debt is harder to sell and buyers will reflect this in their terms.
A typical buyer with a mortgage will often refuse an occupied flat with a problem tenant or will insist on a significantly lower price. However, this is not a legal obstacle. A cash buyer who expects to purchase an occupied flat will not ask you to evict it. You can find more on our page on purchasing occupied rental property.
| Option | Advantage | Disadvantage |
|---|---|---|
| Wait for eviction and then sell | An empty flat usually sells more easily | Dispute takes longer and the mortgage continues to accrue |
| Sell the occupied flat through the market | Potential for a better price | Few buyers interested and time is running out |
| Sell the occupied flat to a cash buyer | No eviction or repairs needed; process is predictable | Price reflects speed and occupation |
How urgent sales with mortgage repayment work
Your lender's charge is paid from the purchase price via a lawyer's escrow account, so you don't need to have funds for early repayment beforehand. Once the mortgage is settled, the charge is removed from the Czech Land Registry. More details are on our page on purchasing a property with a mortgage.
- Offer: within 24 hours, in writing and non-binding.
- Signing contracts and deposit: typically within 1–3 days; the deposit is paid when the contract is signed.
- Registration in the Czech Land Registry: approximately 3–4 weeks. The Land Registry cannot decide before 20 days have passed since notice to the owner and the average registration time is approximately 22 days.
- Final payment: within 5 days of registration from the lawyer's escrow, after the lender has been paid.
Payment is by bank transfer; cash is limited to CZK 270,000 per day (Act No. 254/2004 Coll.). Lawyer's escrow and legal services are provided free of charge, without repairs or eviction. If you need funds immediately, see rapid sale with deposit on signing. For any capital gains tax, a time test and residence condition generally apply (Act No. 586/1992 Coll.); your tax adviser or the Tax Authority can advise on this.
What to do now
Don't wait for your lender to call in the loan; prepare documents and get a comparable offer. Forced auction of a property is the worst possible outcome because the starting bid is two-thirds of the expected price (Czech Civil Procedure Code § 336e; similarly in enforcement cases).
- Extract from the Czech Land Registry and your title sheet number.
- Your loan agreement and current mortgage position from your lender.
- The tenancy agreement, payment history and reminders to the tenant.
- Any documentation of deposits (caution/security deposit) and service charges.
Get a non-binding offer or situation assessment through the form below this article; an offer will arrive within 24 hours with no obligation. If forced auction is already looming, read about rapid sale before forced auction.