Buying a Property With a Tenant in Morocco: What Happens to the Lease and the Rent

Yes, you can buy a property in Morocco that already has a tenant, and in most cases the lease simply continues with you as the new landlord.

The sale does not cancel the tenancy, so you inherit the tenant, the rent and the landlord’s obligations.

That can be a good deal, because the property earns money from day one, but only if you read the lease before you agree a price.

This article is general educational information based on my own purchase and current published sources, not legal advice. Every lease is different, so have the contract reviewed by your notary or a Moroccan lawyer before you commit.

Does the lease end when a rented property is sold in Morocco?

No. A sale does not end the lease, and there is no automatic notice to leave because the owner changed.

The lease continues on the same terms, with the same tenant, until it ends under its own rules (Reaconsult, June 2026).

The buyer collects the future rent, but also takes over the landlord’s duties, such as maintenance and returning the tenant’s security deposit at the end.

Buyers sometimes assume that a lease not written on the land title cannot be used against them.

That is risky: a Casablanca commercial appeal court ruling of 3 November 2022, reported by Reaconsult, held that a buyer was bound by an existing lease even though it was not registered on the title (Reaconsult summary of the ruling).

So a clean ownership certificate does not tell you whether the property is rented.

You have to ask, visit, and read the lease yourself.

What happened when I bought a property with a rented shop?

Looking back, the tenant was probably worried that a new owner would use a new contract to raise his rent.

The lesson for buyers is simple: you do not sign a new lease to become the landlord, and the tenant has no reason to accept a worse deal because the building changed hands.

The income from that shop is what made the deal attractive, and it is also why I now tell buyers to treat the lease as part of the property, not a detail to sort out later.

Which law applies: residential or commercial lease?

The rules depend on how the property is used, and the difference matters a lot for your plans.

Residential leases

Under Law 67-12, a landlord can usually only give notice when the lease expires, and only for recognised grounds such as taking the home back to live in it or for major works (Reaconsult guide to notice under Law 67-12).

The notice must be served formally, for example by a bailiff, an adoul deed or a notarial deed, and a court can check that the reason is genuine.

If you are buying an apartment to live in, a sitting tenant can therefore delay your plans by months or longer.

Commercial leases

Commercial tenants are better protected.

Law 49-16 gives the tenant a right to renewal once they have occupied the premises for at least two consecutive years (Law 49-16, article 4, official text on the Ministry of Justice portal).

If the landlord refuses renewal without a legal exception, the eviction indemnity can include the value of the business, based on the last four years of tax returns, plus moving costs (Law 49-16, article 7).

The same law sends rent revisions to Law 07-03, which limits how and when rent can be increased (Law 49-16, article 5).

In other words, if you buy a rented shop hoping to take it back or double the rent, the price you pay should reflect that this may not be possible.

When does the rent start going to the buyer?

In my case, the rent came to me once the sale was registered and the property was officially in my name.

Until then, the seller remained the landlord in practice, and the tenant was right to keep paying under the existing contract.

To avoid confusion, agree these points in writing before completion:

• The handover date for the rent, written in the preliminary agreement and the final deed.
• The rent for the month of the sale, split between seller and buyer by date.
• Any unpaid rent owed before the sale, which normally stays a matter between the seller and the tenant.
• A joint letter to the tenant from seller and buyer, confirming the new owner and where to pay.

Keep a copy of that letter and proof that the tenant received it.

Our guide to the compromis de vente in Morocco explains how to write conditions like these into the preliminary agreement.

What should you check before buying a rented property?

Ask the seller for these documents early, before you discuss the final price:

• The full written lease, with any amendments, renewals and the date it started.
• The tenant’s identity, and for a shop, the business name and its commercial registration.
• Proof of rent payments for the last twelve months at least, such as bank statements or receipts.
• The security deposit: the amount, who holds it, and how it will be transferred or deducted from the price.
• Any pending dispute, notice, court case or rent revision request.
• Who pays which charges, such as syndic fees, water and electricity.
• Whether the tenant paid key money or a sum for the right to the lease, which can change their rights in a commercial lease.

Then visit the property and, if possible, speak politely with the tenant.

The tenant can confirm the rent, the condition of the premises and whether anything was promised by the seller that is not in the contract.

These checks come on top of the normal ones, which are covered in our property due diligence checklist.

How should a tenant change the price you offer?

A rented property is not worth the same to every buyer.

For an investor, a reliable tenant at a fair rent can justify paying more, because there is no empty period and no letting cost.

For a buyer who wants to live there or rent it on Airbnb, the same tenant can be a cost, because the property is not available.

Remember that rent you receive is taxable income in Morocco, so read our guide to rental income tax for foreigners before you calculate a yield.

If you are still choosing a strategy, our comparison of Airbnb and long term rental in Marrakech can help.

What mistakes do buyers make with tenanted properties?

On deposits in general, I once paid around €1,000 as a guarantee while waiting for a seller to return from abroad.

It worked out, but I would not do it so casually today, and our guide to the property deposit in Morocco explains the safer approach.

Frequently asked questions

Can I evict a tenant after buying a property in Morocco?

Not just because you bought it. For a home, notice is generally only possible at the end of the lease and for recognised reasons, served formally. For a shop, the tenant may have a renewal right and an eviction indemnity. Ask a Moroccan lawyer before you plan around vacant possession.

Do I need to sign a new lease with the tenant?

Usually not. The existing lease continues with you as landlord. A letter from seller and buyer confirming the change of owner and the payment details is normally enough, but confirm with your notary.

What if the lease is not registered on the title deed?

Do not assume it is invalid. A reported 2022 Casablanca commercial appeal court ruling held that an unregistered lease still bound the buyer. Always ask whether the property is occupied.

Who keeps the tenant’s security deposit?

The buyer takes over the duty to return it at the end of the lease, so agree in writing whether the seller hands it over or the amount is deducted from the price.

Can I raise the rent after buying?

Rent revisions are regulated, notably by Law 07-03, so you cannot simply set a new rent. Check the lease terms and the legal limits with a professional.

Should you move forward with a rented property?

A property with a good tenant can be one of the best deals you find, as my own rented shop showed.

Move forward only when you have read the lease, confirmed the rent history, agreed the handover date and the deposit, and understood whether you could ever take the property back.

Then let the notary handle the payment and registration, as explained in our guide to buying property in Morocco through a notary.