What You Need to Know About Selling a Tenanted Property in Ontario
Whether you’re looking to sell your current home with a secondary suite in the basement or you have a dedicated income property such as a condo, selling with tenants does have its fair share of complexities.
From navigating tenant rights to listing, preparing, and showing a home that someone lives in, it’s a fairly involved process. But with good planning, communication, and the help of an expert, you can ensure a property sale that’s both smooth and profitable.
If you’re looking to sell a tenanted property in Toronto, or elsewhere in Ontario – here’s what you need to know.
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Expert Support Goes a Long Way
Like any home sale, the best place to start when selling with tenants is working with an experienced real estate agent. However, it’s important to keep in mind that selling a tenanted property is a unique process, both logistically and from a legal standpoint. Luckily, there are real estate professionals who specialize in working with investors.
Not only can a real estate agent with investment property expertise guide you through your regulatory obligations as a landlord, but they’ll also help you get the best possible price for your property.
There Will Be Red Tape
As a landlord, navigating the various bylaws and regulations that come with having tenants is likely nothing new to you. That being said, things become a little more complicated when it comes time to sell your property.
First things first, as a property owner in Ontario you have the legal right to sell your property whenever you wish to do so and for any reason. However, during the process of selling your tenants will have certain rights too.
Tenant protections aren’t one-size-fits-all, and some tenants will have different rights than others. Navigating the red tape can get complicated so working with a real estate who has niche expertise in tenanted properties is the best way to avoid landing yourself in hot water.
Selling your home or investment property in West Toronto? Explore some of these resources from our blog to learn how you can maximize your return.
- The Power of Staging a Home to Sell
- Smith Proulx’s 9 Steps of Selling
- How to Sell Your Toronto Home in a Balanced Market
Start Planning Early
When it comes to selling a tenanted property, it’s best to start planning as early as possible. This is especially true if any of your tenants have been living on the property for a short period of time.
Under the Ontario Residential Tenancies Act (RTA), if any of your tenants are within the first 12 months of their lease, it must be honoured regardless of your sale. While you can still legally sell your property during this time frame, a buyer will not be able to evict the tenant until their lease is up.
Interested in learning more about how the Smith Proulx Team sells properties in West Toronto? Click here to discover our selling advantage.
When the time comes to have interested buyers tour the property, you’ll need to keep your tenants in the loop. Under the RTA, you must provide tenants with a minimum of 24 hours’ notice before entering their suite or unit. In addition to advanced notice, you’re only allowed to schedule showings between the hours of 8 AM and 8 PM. Once again, working with an experienced agent is the easiest way to take the stress out of this process.
Key Dates & Deadlines
As a landlord in Ontario, you technically have no legal obligation to tell your tenants about the sale of your property until the deal is done. That being said, it’s always best to open up the lines of communication early, especially since they may need to find new living arrangements. Plus, you’ll likely need to work closely with your tenants during the process of scheduling showings so a little compassion can go a long way.
What About Evictions?
As you may expect, evictions are one of the most challenging parts of selling a property with tenants. Depending on the buyer’s plans for the property, you as the acting landlord may be tasked with overseeing the eviction process. This mainly comes down to whether or not the buyer intends to live in the property or continue renting it out.
If the buyer intends to move into the property on the possession date and your tenants are beyond the initial year of their lease, you are required to oversee their eviction with a minimum of 60 days’ notice.
There are a lot of factors to consider when selling a tenanted property in Ontario. As experienced real estate agents in West Toronto, we can make the process smooth, easy, and successful. Send us an email or call 416-769-6050.
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